Egyptian MPs approved on Monday a new law aimed at establishing an investment fund for charitable endowments (Wakf).

Head of parliament's religious affairs committee Ali Gomaa said the law goes in line with Article 90 of the constitution, which states that the government shall sponsor scientific, cultural, and health institutions.

"All the Wakf money will be collected by this fund to establish service and development projects," said Gomaa, indicating that "the fund's money will also be used to spend on infrastructure projects, will improve living conditions in slum areas as well as contribute to eliminating the phenomenon of street children."

Article 4 of the law states that a board will be created to manage the fund's affairs.

"The board will be in charge of selecting an executive director to be responsible for the fund's activities," says Article 4, which also indicates that "a periodical report will be prepared on the fund's performance in a year."

The board of the charitable Wakf fund will be headed by the prime minister and include a number of economic, financial, and judicial experts to be selected by the ministries of endowments, justice and finance.

Article 8 states that the fund's money will come from cash grants and donations and returns on existing Wakf projects.