https://arab.news/b8hba
- The sub-fund will be managed by a five-member board of directors appointed for an initial three years
CAIRO: The Egyptian government has announced plans to establish a $2 billion investment fund to help boost the non-banking financial services sector and promote the country’s digital transformation.
Hala Al-Saeed, Egypt’s minister of planning and economic development and chairman of the board of directors of the Sovereign Fund of Egypt, said the decision to set up the sub-fund formed part of the nation’s 2030 vision for comprehensive and sustainable development.
This would be achieved through public- and private-sector partnerships, more investment opportunities, diversification of sources of financing, cooperation with local and international companies and institutions to increase investment, and ensuring the best use of state assets and resources to maximize their value.
Al-Saeed pointed out that since its creation, the wealth fund had succeeded in attracting local and foreign investment and brokering multiple partnership agreements.
The minister said the sub-fund would invest in non-banking financial services, digital transformation, and financial inclusion and technology and would include insurance services and brokerage, real estate finance, commercial factoring, micro-finance, portfolio management, and financial investments.
It would also focus on the establishment of specialized funds in the field of financing and consumer finance, the development, sale, and licensing of apps and technological services in support of banking and non-banking financial services, and payments and classification services for securities (credit rating).
She added that the fund would cooperate and participate with Arab and foreign counterpart funds, and various financial institutions and companies to achieve specified investment returns.
It would have clearance to establish or contribute to companies, funds, and other entities inside or outside of Egypt, in addition to borrowing, obtaining credit facilities, and issuing bonds, financing and other debt instruments, and would also have the right to buy, sell, rent, or lease fixed and movable assets.
The fund, she added, would carry out all investment, financial, and administrative transactions for the assets entrusted to it.
Ahmed Abouria, a journalist specializing in economic affairs, said the fund would concentrate on the Greater Cairo Governorate, but might also establish branches in other Egyptian cities or abroad.
The sub-fund will be managed by a five-member board of directors appointed for an initial three years.