Egypt establishes a new sovereign fund through the “Egypt Future” Authority | economy

Egypt is moving to expand the powers of the “Egypt’s Future” agency through a new draft law that turns it into a comprehensive economic body that reports directly to the President of the Republic, granting it broad powers to manage public assets and establish development zones and a new sovereign fund, in a step that strengthens its role in managing economic and investment files.

According to a draft law seen by Reuters, the legislation grants the agency an independent legal personality and full financial, technical and administrative independence, while entrusting it with “maximizing Egypt’s economic strength” and enhancing food security, energy, water and national security.

The draft law comes within the framework of the government’s efforts to restructure the management of state assets, in light of economic pressure and the reform program agreed upon with the International Monetary Fund.

The draft law allows the President of the Republic, after consultation with the Council of Ministers, to transfer state-owned funds and assets, shares in public companies, and the rights to manage state property to the agency, without requiring the approval of the House of Representatives.

It also stipulates the establishment of “sustainable development zones” by presidential decision, to which ownership of land and facilities is automatically transferred, while granting the agency the powers of regulation, licensing, and setting governance and investment rules, provided that these zones enjoy the treatment of free zones in terms of taxes and customs.

The project includes the establishment of a new sovereign fund called the “Egypt Sovereign Future Fund” or “The Nile Pyramids,” which will invest the assets allocated by the state inside and outside Egypt, and conclude partnerships with foreign sovereign funds, in a way that contributes to developing national wealth and preserving it for future generations.

It also establishes a parallel social fund called “Daim,” which directs investment returns to finance education, health, housing, and infrastructure projects, with a focus on social justice and equal opportunities.

The project stipulates that the head of the agency will be granted the rank of minister, while the executive directors of the two funds will have the rank of deputy minister. It also allows the agency to acquire sovereign, economic, or national investment funds wholly owned by the state.

Broad exemptions

The draft law grants the agency broad exemptions from some laws regulating public bodies, the civil service, government purchases, and maximum wages, in addition to exempting some of its transactions from value-added tax, stamp, and registration fees.

The right to appeal the agency’s contracts and its disposal of assets is also limited to the parties directly involved, while third-party lawsuits are prohibited unless final criminal rulings related to public money are issued.

The role of the “Egypt Future” Authority has witnessed rapid expansion in recent years, as it was entrusted with managing wheat imports, supervising lakes and fisheries, and acquiring the largest share in the commodity exchange, in addition to expanding the sectors of housing, renewable energy, and infant formula.

The agency was also tasked with reclaiming about 4.5 million acres, equivalent to about half of the current agricultural area in Egypt, within the framework of agricultural expansion and development projects.