Proposed legislation would establish the “Nile Pyramids” sovereign wealth fund alongside the Sovereign Fund of Egypt while placing the Future of Egypt Authority at the center of strategic state asset management.
Egypt’s government has introduced draft legislation that would transform the Future of Egypt Sustainable Development Authority into one of the country’s most powerful economic institutions while creating a second sovereign wealth fund, marking one of the most significant restructurings of Egypt’s state investment architecture in recent years.
The proposed legislation comes as Cairo advances structural reforms under its IMF-supported economic programme while seeking to strengthen public asset management, attract long-term investment and improve the efficiency of strategic national projects. If enacted, the law would establish the Future of Egypt Authority as an independent national institution reporting directly to the President of the Republic, with full legal, financial and administrative autonomy under a presidentially appointed board serving renewable four-year terms.
Originally established to oversee agricultural land reclamation, the Authority has since assumed responsibility for strategic agricultural projects, wheat procurement, commodity trading, fisheries, logistics, industrial development and a growing portfolio of national investment initiatives. Its expanding mandate reflects the government’s strategy of consolidating food security, strategic industries and key economic assets under specialised national institutions.
At the heart of the legislation is the creation of the Future of Egypt Sovereign Wealth Fund – Nile Pyramids, which would serve as the Authority’s principal long-term investment vehicle. The fund would preserve and grow designated state assets through domestic and international investments while partnering with regional and global sovereign wealth funds. Unlike the existing Sovereign Fund of Egypt, which reports to the Cabinet, the proposed Nile Pyramids Fund would operate under the Future of Egypt Authority, which reports directly to the President, creating a second sovereign investment platform within Egypt’s public investment framework.
The draft law also establishes the Future of Egypt Social Development Fund – Daem, which would channel investment returns into education, healthcare, housing, infrastructure and wider social development programmes aimed at promoting social justice, equal opportunity and sustainable community development.
In a significant expansion of its powers, the legislation authorises the President, following Cabinet consultation, to transfer selected state assets, shares in state-owned companies and rights to manage public property to the Authority. It also provides for the establishment of Sustainable Development Zones, where the Authority would exercise broad powers over investment, licensing, governance and land administration under a preferential tax and customs framework intended to accelerate strategic development projects.
The proposed Nile Pyramids Fund would enjoy tax, customs and financial incentives equivalent to those granted to the Sovereign Fund of Egypt, while remaining exempt from provisions requiring certain public-sector surpluses to be transferred to the state budget. The legislation also allows the President, upon the recommendation of the Minister of Finance, to allocate between 7% and 10% of the fund’s real annual investment returns to the state treasury.
The Authority would also be empowered to acquire wholly state-owned sovereign, economic and investment funds and operate outside several public-sector procurement, civil service and wage regulations. In addition, the draft limits legal challenges to contracts and asset transfers to the parties directly involved, a provision intended to strengthen investment certainty and reduce litigation risks.
The government says the proposed framework will streamline strategic investment decisions by centralising asset management under a single institution with extensive fiscal and administrative autonomy. Similar specialised sovereign investment structures have been adopted in several countries to complement existing sovereign wealth funds by focusing on strategic sectors, infrastructure and long-term national development. The proposal is nevertheless expected to attract close scrutiny from investors and governance specialists regarding transparency, institutional oversight and the expanding role of state entities in Egypt’s economy.
The draft legislation will now be considered by Parliament before becoming law. If approved, it would establish a dual sovereign wealth framework intended to mobilise strategic investment while preserving state wealth for future generations, positioning the Future of Egypt Authority at the heart of Egypt’s long-term investment, strategic asset management and economic development agenda.
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