Santiago Principles Self-Assessment

The Sovereign Fund of Egypt

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Law 177 of 2018 establishing the Sovereign Fund of Egypt, stipulated that it is a sovereign fund which has an independent legal personality. 

1.1. The law and the articles of association issued by Prime Ministerial decree number 555 of 2019 laid out the governance of the Fund, its resources, management of its investments and operations and their control measures. The law was amended by law 197 of 2020 converting the name to the Sovereign Fund of Egypt for Investment and Development and expanding the mandate to contribute to sustainable economic development through owning and managing its assets and managing assets for other entities according to international standards. 

1.2. The legal basis and structure of the TSFE and its relation with other government bodies are clearly stated in the Law and the Articles of Association which are published in the Official Gazette.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Law 177 of 2018 establishing the Sovereign Fund of Egypt, stipulates that it is a sovereign fund which has an independent legal personality. The role of the General Assembly, the Board of Directors, the Chief Executive Officer and external auditors is clear, and their respective responsibilities are identified by the Law and the Articles of Association. The Board directors and General Assembly members have a  private-sector majority, ensuring independence from the government in operations and investment decisions. TSFE has a General Assembly that oversees the Board of Directors which in turn oversees the SFE executive management. The sub-funds have their own Boards of Directors and their general assembly is TSFE Board so there is consistency in the policies and targets that are streamlined and supported by TSFE executive management.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

TSFE Investment Policy and how it manages and monitors its investments are clearly stated in its relevant policies and procedures. The internal policies and procedures include Risk and Compliance. There are also committees created by the SFE Board populated by members of the Board focused on Risk and Compliance and Governance and Internal Audit to ensure proper governance and monitoring on the investment side. 

18.1. The Investment Policy and the control measures set by the TSFE identify risks and how to control and mitigate them and any leverage is closely monitored and approved by the Board based on rigorous financial studies and checked by the Board Investment Committee. 

18.2. The Investment Policy of the SFE in addition to the Articles of Association of the TSFE and the sub-funds clearly allow for use of internal and/or external investment managers. The relevant internal policies and procedures indicate how they are selected and monitored. 

18.3. The investment policy is currently being approved by the Board, and a summary will be publicly available on the TSFE website when this is approved.