Egypt launches $195 million industrial investment fund to boost exports

Egypt has established a new industrial investment sub-fund under the Sovereign Fund of Egypt, with authorized capital of $195.3 million and paid-in capital of $9.8 million, as the government seeks to boost exports and deepen local manufacturing.

Investment Minister Mohamed Farid Saleh, who also chairs the Sovereign Fund of Egypt, issued a board resolution establishing the wholly owned Sovereign Fund of Egypt Sub-Fund for Industrial Investment.

The fund will target export-oriented companies, with a focus on increasing foreign currency inflows, expanding local components, localizing technology and strengthening industrial capabilities. It will invest in sectors with export and growth potential, including automotive components, electronics and electrical appliances, food and beverages, textiles and ready-made garments, and pharmaceuticals.

Investments will be based on feasibility studies and approval from the sovereign fund’s investment committee, with financing aimed at improving companies’ productive and competitive capacity and supporting expansion and exports.

The fund will also pursue partnerships with global industrial companies to establish new projects or expand existing ones. Its investment strategy includes direct investments in companies, partnerships with investment banks to establish additional industrial funds, and investments in industrial-related land, buildings and other assets.

The fund will work with private-sector companies and investment institutions as part of its strategy to diversify financing and investment tools and encourage new capital into Egypt’s production, manufacturing and export sectors.