Egypt's recently established sovereign wealth fund has been admitted to the International Forum of Sovereign Wealth Funds as an associate member, the planning ministry said on Monday.
In doing so the Egypt Fund will agree to abide by the principles and practices for the governance, investment and risk management of sovereign wealth funds known as the Santiago Principles, the ministry said.
The fund will create commercial partnerships with other sovereign funds and financial institutions to fulfill its mandate consistent with best practices with regards to environmental and social responsibility and rules of governance, it also said.
Associate membership of the IFSWF is granted for up to three years, and is for institutions in the early stages of becoming a sovereign wealth fund.
The Egyptian fund was created by law 177 of 2018, with articles of association issued in February of this year.
The fund is the first of its kind in Egypt, and it was established to contribute to the sustainable economic development of the country by managing its assets and maximising their value for future generations.
“We are delighted to welcome the Egypt Fund to the IFSWF. As an associate member, the Egypt Fund can benefit from the diverse collective experiences of IFSWF’s members as it applies the Santiago Principles to its own unique circumstances," Majed Al Romaithi, chair of the IFSWF, was quoted by the website of IFSWF as saying.
"We hope that these interactions will enable the Egypt Fund to establish processes and practices to the highest international standards, which in turn, will enable it to successfully fulfil its mandate.”
Planning Minister Hala El-Saaad, who is interim CEO of the fund, said its membership of the institution “sends a positive message to potential investment partners.”
"We are striving to create a strong sovereign fund that will independently and efficiently contribute to the Egyptian economy’s sustainable growth and investment. The Egypt Fund will work towards implementing international standards in transparency and ESG while pursuing investment opportunities,” she said.