The Sovereign Fund of Egypt has launched a sub-fund for industrial investment with an authorised capital of EGP 10bn and a paid-in capital of EGP 500m, the minister of investment and foreign trade said.
Minister Mohamed Farid, who also chairs the sovereign fund’s board, disclosed the launch during a meeting with an S&P Global Ratings delegation led by Ravi Bhatia, director and lead analyst for sovereign ratings. The talks focused on Egypt’s macroeconomic developments, investment prospects, and state efforts to execute structural and institutional reforms.
Farid stated that the sovereign fund aims to support economic development, maximise returns on state-owned assets, and lower investment risks in strategic sectors through specialised sub-funds. Alongside the industrial fund, he noted the existence of a financial services and insurance sub-fund.
To support regional development, the state plans to establish eight to nine new investment zones across various governorates over the next two to three years. The expansion aims to attract investment, create jobs near population centres, and boost female participation in the labour market, Farid said.
The government is also coordinating with multiple ministries to prepare a package of ready-to-implement investment opportunities in the health, tourism, housing, and energy sectors to reflect actual market demand.
Outlining foreign direct investment (FDI) policies, Farid said Egypt is adopting a targeted approach based on an FDI strategy drafted with the World Bank, which identifies 12 promising sectors for new inflows.
To streamline business operations, the state is launching an “Economic Entities Platform” in coordination with approximately 90 government agencies. The platform provides a unified digital window for company incorporation, obtaining licences, and submitting documents, thereby reducing procedural duplication and clarifying the investor journey.
On data governance, the ministry is electronically linking the FDI disclosure system with relevant authorities. This aims to improve the quality of economic data and measure investment flows—including reinvested earnings—in accordance with international standards.
Addressing regional and international developments, Farid said the government responded to challenges with balanced fiscal and monetary policies to maintain macroeconomic stability. He noted growing interest from international investors in productive and service sectors, driven by Egypt’s market size, strategic location, and upgraded infrastructure.
S&P’s Bhatia stated that Egypt possesses substantial economic capabilities, commending the government’s comprehensive economic reform programme.
Bhatia emphasised the importance of continuing institutional and digital reforms, particularly regarding simplifying procedures, improving transparency, and ensuring the availability of economic data. These efforts support investor confidence and sustainable growth, he said, adding that S&P Global Ratings is closely monitoring Egypt’s economic developments and the measures taken to improve its investment climate.
