Egypt’s first sovereign wealth fund will help the country diversify investments, shield the economy against unexpected fluctuations and open the door for investment partnerships with other Arab states that have financial surpluses, the government said Sunday, Arabweekly reported. Egyptian Finance Minister Amr al-Garhi hailed the new fund and its potential effects. “The creation of the fund is a major investment leap,” Garhi said. “It is an important mechanism for perking up the investment climate and making business with investment partners.” The government inaugurated the fund in mid-April with the aim of managing unexploited state assets to bring additional revenue to the state treasury. The $11.3 billion fund is small compared to funds managed by countries like the United Arab Emirates, which in 2017 boasted a fund of $828 billion, but the Egyptian government said it is a good first step for future investments and financial gains. One of the fund’s major aims is to allow the Egyptian government diversify investments, especially in sectors of the economy that do not traditionally attract private sector investment.
