Thursday September 28th, 2023
Download SceneNow app

Egypt's Sovereign Wealth Fund to Finally Launch

Orders have been placed by Sisi to finalize the Misr Fund

Staff Writer

Last Saturday, President Abdel Fattah El Sisi issued an order to finalise the creation of the Misr Fund, Egypt’s sovereign wealth fund. President Sisi issued the directive in a meeting with Prime Minister Moustafa and Minister of Planning, Follow-up, and Administrative reform Hala El Sayed.

Sovereign Wealth Funds are a state-owned investment funds that allow countries to have a sustainable revenue source irregardless of how their internal economy is functioning. Most Scandinavian countries, for example, have massive wealth funds that enable them to sustain their extensive welfare program far beyond their countries' available resources. 

As it stands, the Middle East has a combined total of $2.95 trillion according to the Sovereign Wealth Fund Institute, and Egypt is one of the last countries to start their own Sovereign Wealth Fund. 

As a part of Egypt’s 2030 plan, Egypt seeks to make structural reforms and efficiently use its state-owned companies and investments to diversify the economy as well as boost private sector investments.

USD 2 billion has recently been given to Egypt by the International Monetary Fund (IMF) to help kickstart the fund. This follows the last IMF loan in 2016, which racked up to a USD 12 billion, 3-year loan.