State pension fund to invest in Egypt's private sector

30 September 2010

Investments will follow new pension in January 2012

Egypt’s Finance Ministry has said the country’s state pension fund is to begin directing billions of dollars into private investments when a new pension law comes into force in January 2012, Reuters has reported. In the first year under the law, a new state pension system that works on the basis of defined contributions, instead of a current arrangement based on defined benefits, will collect an estimated £E15-20bn ($2.6-$3.5bn), Deputy Finance Minister, Mohamed Maait said. The new law will allow employees who have contributed under the old system to enter the new system if they choose, leading to the new system’s large initial size.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.