Egypt approves establishment of Suez Canal Authority Fund

CAIRO - 21 July 2022: The Egyptian Cabinet approved Wednesday a draft law amending some provisions of Law No. 30 of 1975 regarding the Suez Canal Authority, where a number of articles were added to the law.

 

The draft law stipulates the establishment of a fund under the name (Suez Canal Authority Fund), so that it will have an independent legal personality, and its headquarters will be in the Ismailia Governorate, and the fund’s board of directors may establish branches or offices for it within the Arab Republic of Egypt. The Fund's statute is issued by a decision of the President of the Republic, based on the presentation of the Chairman of the Suez Canal Authority and the approval of the Council of Ministers, within sixty days from the date of enforcement of this law.

 

The fund aims to contribute to the sustainable economic development of the Suez Canal Authority facility and its development through the optimal use of its funds, in accordance with the best international standards and rules to maximize its value, and to confront crises and emergencies that occur as a result of any exceptional circumstances, force majeure, or bad economic conditions.

 

The Board of Directors of the Suez Canal Authority Fund is formed by a decision of the Prime Minister based on the proposal of the Chairman of the Suez Canal Authority, and includes the Chairman of the Suez Canal Authority or his designee as Chairman, and the membership of four members of the Board of Directors or managers of the Suez Canal Authority determined by the statute of the Fund, in addition to three members Experienced in the economic, legal, investment, or other fields related to the fund's purposes,

 

The term of their membership is four years, renewable for a similar period. The draft law also stated the tasks and powers of the board of directors, and specified the periodicity of the meeting of its board of directors.

 

The Suez Canal Authority Fund shall have an executive director with practical experience in the field of investment dedicated to managing it, and it shall have a general assembly, and the statutes specify the periodicity of holding the general assembly during the fiscal year.

 

In February, Osama Rabie, head of the Suez Canal Authority, revealed the authority's intention to establish an investment fund with an initial capital of LE 2 billion.