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 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
  1. Represents the Fund in its relations with others and before the courts.
  2. Responsible for implementing the Board’s decisions and running the TSFE’s day-to-day transactions.
  3. Suggesting the Fund's plans, programs, and budgets, and supervising their implementation.
  4. Preparing the fund's work plan and performance indicators for its administrative units.
  5. Suggesting the administrative and financial regulations, and any internal regulations for the fund and the regulations for its activities.
  6. Appointing the fund's employees and supervising them.
  7. Finalizing agreements and contracts.
  8. 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.