The Egyptian Sovereign Fund for Investment and Development (formerly known as The Sovereign Fund of Egypt -TSFE) will now operate under the Ministry of Investment, as per a recent decree issued by Prime Minister Mostafa Madbouly.
This strategic move aligns with President Abdel-Fattah El-Sisi’s vision for the fund and aims to further enhance its role in driving economic growth and development in Egypt.
Established in 2018, the TSFE has emerged as a significant player in the global sovereign wealth fund landscape. It has successfully attracted 43% of total foreign direct investment (FDI) to Egypt, amounting to EGP 37 billion, between 2018 and 2023.
The fund’s key objective is to partner with local and international investors to maximize the value of state-owned assets. By designing unique investment products, the TSFE optimizes the utilization of these assets, creating sustainable financial returns over the long term.
In addition to generating financial returns, the TSFE is committed to delivering a positive socioeconomic impact through its investments. The fund’s diversified portfolio is carefully managed to optimize risk-return profiles, ensuring a sustainable and balanced approach to investment.
To further facilitate investment in state-owned enterprises, the TSFE established the Egypt Sub-Fund for Asset Management and Restructuring in September 2022. This sub-fund enables institutional investors to participate in the privatization process by investing in and purchasing shares of state-owned companies before they are offered to the public.
The TSFE’s recent ranking as the 47th largest sovereign wealth fund globally, with assets under management exceeding $12 billion, underscores its growing significance. By operating under the Ministry of Investment and External Trade, the TSFE is poised to further strengthen its position as a catalyst for economic growth and attract additional foreign investment to Egypt.
