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Thursday, 02 July 2020

Egypt's sovereign fund, defence ministry's NSPO sign cooperation deal to restructure subsidiaries

Ahram Online , Monday 3 Feb 2020
Prime Minister
Egypt's Prime Minister Mostafa Madbouly during the signing ceremony of a cooperation agreement between the country's Sovereign Wealth Fund (SWF) and the National Service Products Organization (NSPO) on Monday
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Egypt's Sovereign Wealth Fund (SWF) and the Ministry of Defence's National Service Projects Organisation (NSPO) signed a deal on Monday for the restructuring and development of several affiliated companies.

Planning and Economic Development Minister Hala El-Said, who chairs the fund, said the deal is in line with President Abdel-Fattah El-Sisi request to list the Armed Forces' projects on the stock market.

As per the deal, the NSPO and SWF will selective some companies and economically feasible assets belonging to the NSPO to be placed in a portfolio of assets for promotion and investment, El-Said noted.

The agreement reflects the main role of the fund to enhance partnership with the private sector in an effort to draw unique investment opportunities, said Ayman Suleiman, CEO of Egypt's SWF.

He added that the fund will supervise the preparation of investment studies to make the best use of the assets agreed upon with the NSPO.

"Investing in these assets with the private sector may reach 100 percent," he added, noting that "the fund may invest in these assets with potential investors or help the NSPO create partnerships in these assets directly."

Established in 1979, the NSPO owned by the Armed Forces and operating in various crucial development sectors to meet the needs of the military and the local market. 

Its portfolio includes companies in the food industry, agricultural, industrial, engineering, services, and mining sectors.

The SWF was created by law 177 of 2018, with a registered capital of EGP 200 billion ($11.2 billion) and an issued share capital of EGP 5 billion.

The fund is meant to run all state-owned assets for the sake of achieving sustainable economic development according to the best international standards.

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