Egypt establishes investment fund to restructure struggling factories

The Egyptian Cabinet has approved the establishment of an investment fund designed to restructure and finance struggling factories. Organized as an Egyptian joint-stock company, the fund aims to rescue national industrial entities, restore production capacity, and preserve jobs across strategic sectors including food, engineering, chemicals, textiles, pharmaceuticals, and construction.

While some lawmakers praise the move as a vital step to boost the competitiveness of Egyptian products and reduce import dependency, others have raised parliamentary questions regarding the government's role. Concerns have been voiced about whether the fund's ability to acquire shares in distressed companies aligns with the State Ownership Policy 2026–2030, which seeks to reduce the state's economic footprint in competitive sectors. Lawmakers are seeking clarification on the criteria used to define a struggling factory, the fund's capital structure, and whether the government intends to act as a temporary restructurer or a long-term owner.