According to a statement published by the Egyptian Cabinet, on its official page on “Facebook”, the agreement aims to use the expertise of the fund’s cadres in preparing some of the assets of the agency to attract investments from the private sector locally and internationally and expand its ownership base in line with the directives of President Abdel Fattah El-Sisi.
Last October, Sisi said, while he opened two chemical factories belonging to the armed forces, that the sale of shares in companies owned by the army should be allowed on the stock exchange.
Likewise, last December, he spoke about the same thing during the celebration of the opening of a number of animal production projects in Fayoum Governorate.
Al-Sisi talked about the same thing in 2018, pointing out that Egypt plans to offer shares on the stock exchange for a $ 1.1 billion cement factory owned by the armed forces.
According to the statement, Dr. Hala Al-Saeed, Minister of Planning and Economic Development, and Chairman of the Board of Directors of Egypt’s Sovereign Fund, said that “the agreement signed today between Egypt’s sovereign fund and the National Service Projects Authority comes in implementation of President Abdel-Fattah El-Sisi’s assignments, according to what he announced in one of the presidential openings, by offering Armed Forces Companies on the Stock Exchange. “
Ayman Suleiman, CEO of Egypt’s Sovereign Fund, and Major General Nader Zaki, Director of Financial and Commercial Administration at the Presidency of the National Service Projects Authority, signed the agreement in the presence of Dr. Hala Al-Saeed, Minister of Planning and Economic Development and Chairman of the Board of Misr Sovereign Fund, and Major General Mustafa Amin Ali, Director of Projects Authority National Service.
The Minister emphasized that “the agreement is based on the Authority and the Egyptian sovereign fund choosing some companies and economic feasible assets belonging to the National Service Projects Authority, which will be placed in a portfolio of assets available for promotion and investment so that the Fund will supervise the work of investment studies for it and work to prepare it to attract investments from the private sector Locally and internationally, and expanding its ownership base to maximize its value and return to the state’s organs. ”
The minister pointed out that “the agreement comes within the plan of economic reform and restructuring implemented by the Egyptian state to maximize the returns of the Egyptian economy.”
She pointed out that the National Service Projects Authority played a supporting role for the economy in extraordinary times, and that “the current time is appropriate to open the way for the private sector to play its inherent role in increasing growth and creating more decent work opportunities.”
The Minister emphasized that the sovereign fund is progressing steadily towards attracting investments in line with the sustainable development strategy, Egypt’s Vision 2030.
For his part, Ayman Suleiman, CEO of Egypt’s Sovereign Fund, said that the agreement “reflects the main role of Egypt’s sovereign fund to launch and strengthen partnerships with the private sector and its role in attracting private capital to promising sectors and creating and providing unique and distinct investment opportunities in new areas that were not available to the private sector from Before”.
The Egypt Sovereign Fund was established in 2018 to attract private investment to Egypt and encourage joint investment in state resources and assets owned by it in order to increase its value and effectiveness for the Egyptian economy, and the fund is managed independently, through a distinguished group of specialized cadres from the private sector, and the fund seeks to communicate with devices The various state to choose the investable assets to work on promoting it and joint investment with local and foreign specialized investors and financial partners to create high added value for the Egyptian economy, increase the role of the private sector in it and create job opportunities for young people in Egypt.
Suleiman pointed out that “the fund will supervise the preparation of investment studies in cooperation with consultants to determine the optimal investment utilization mechanism for the assets agreed with the National Service Projects Authority and that the investment by private investors may reach 100%, with the possibility of the fund investing in these assets with Potential investors or work to support the device in creating partnerships in those assets directly that would increase the value of these assets. “
The fund operates through a special law that allows the formation of investment partnerships that allow it to provide unique opportunities to investors in a supportive manner to the government in its endeavor to implement structural reforms in the various sectors of the country, which leads to increased diversified economic growth. Egypt’s sovereign fund also operates in accordance with international best practices in all aspects starting from its system The investment is clear and flexible, which allows the formation of various partnerships with multiple investment structures and even corporate governance. The fund is supervised by a board of directors and a general assembly, the majority of whose members are from the private sector.