The philosophy of The Sovereign Fund of Egypt is to become a
privately managed investment fund with the objective of
stimulating private investments in Egypt’s underutilized
assets to unlock value and create wealth for future
generations.
TSFE was formed in 2018 in accordance with Law 177 of 2018
(amended by law 197 of 2020), deploying a special legal
framework that helps it present never-before-possible
opportunities of investment in state-owned assets. The
articles of association issued in February 2019 by Prime
Ministerial Decree no. 555 of 2019 lay out in details the
fund’s scope of work, and its various investment tools and
mechanisms.
The resources of TSFE, in accordance with the law of its
establishment, consist of the fund’s capital (financed from
state resources), the assets whose ownership is transferred to
the Fund, the return on investing its money and assets, the
loans and facilities that it may obtain, and any other
resources approved by the Fund’s Board of Directors.
The Sovereign Fund of Egypt is a sovereign investment fund
wholly owned by the Arab Republic of Egypt. It’s an
independent legal entity that possesses financial and
administrative independence. The TSFE follows special private
laws dedicated to it.
The Fund, the subsidiary funds, and the companies established by the Fund or participating in its establishment are considered private entities, regardless of the percentage of the state’s contribution, the public sector, or the public business sector in them.
The Fund, the subsidiary funds, and the companies established by the Fund or participating in its establishment are considered private entities, regardless of the percentage of the state’s contribution, the public sector, or the public business sector in them.
The fund aims to contribute to sustainable economic
development through managing its funds and assets and
achieving optimal use in accordance with the best
international standards and rules, to maximize their value for
future generations.
Investment bases:
- Tourism, Real Estate and Antiquities.
- Infrastructure & Utilities Subfund.
- Fintech & Financial Services.
- Healthcare & Pharmaceutical.
- Education.
- Industry.
- Agriculture & Food.
- Telecommunication.
- Approved Capital.
- Assets whose ownership has been transferred to the fund.
- Income from investments.
- Loans, and other financial instruments.
- Resources approved by the Board of Directors.
After a comprehensive study has been completed and with the
approval of the Board of Directors of TSFE, the transfer of
ownership of any of the unutilized assets privately owned by
the state or any of its affiliates to the fund or any of the
funds it establishes and wholly owned by it, shall be pursuant
to a decision by the President of the Republic based on a
proposal by the Prime Minister and the competent minister (the
minister concerned with planning affairs).
The TSFE’s board of directors may form committees from among
its members or from third parties, who have the necessary
expertise according to the competencies of each committee.
The Executive Director is appointed for a period of three
years, which is renewable for other similar terms.
The functions are as follows
- Represents the Fund in its relations with others and before the courts.
- Responsible for implementing the Board’s decisions and running the TSFE’s day-to-day transactions.
- Suggesting the Fund's plans, programs, and budgets, and supervising their implementation.
- Preparing the fund's work plan and performance indicators for its administrative units.
- Suggesting the administrative and financial regulations, and any internal regulations for the fund and the regulations for its activities.
- Appointing the fund's employees and supervising them.
- Finalizing agreements and contracts.
- Any other powers granted to him by the Board of Directors.
The controls for establishing are done through the provisions
of the Capital Market Law or the laws regulating the
procedures for its establishment. An establishment is issued
by the Board of Directors based on the studies and
recommendations of the Investment Committee and in accordance
with the internal policies of the Fund.
Controls for establishing subsidiaries is based on the
investment plan proposed by the Investment Committee, approved
by the Executive Director, and approved by the Board.