The Egyptian government agreed to amend some provisions of Suez Canal Authority Law No. 30 of 1975, which aims to establish a 2 billion Egyptian pound fund with independent legal personality under the name “Suez Canal Authority Fund,” for which an executive director with practical experience in the field has been appointed. The investment industry manages the Fund.
The amendment designated the Ismailia Governorate as the fund’s headquarters, and it may establish branches or other offices within Egypt. The Fund’s statute is issued by a decision of the President of the Republic within sixty days of the law’s enactment, based on a presentation by the Chairman of the Suez Canal Authority and approved by the Council of Ministers.
According to the provisions, the Fund aims to contribute to the Suez Canal Authority facility’s long-term economic development by making the best use of its funds and maximizing their value, as well as “confronting crises and emergencies that occur as a result of any exceptional circumstances, force majeure, or poor economic conditions in the country.”
The prime minister appoints the fund’s board of directors based on a proposal from the head of the Suez Canal Authority. The latter, or his representative, is made up of a chairman and four members of the Authority‘s board of directors or managers, as determined by the Fund’s Articles of Association, as well as three members with experience in economic, legal, investment, or other fields related to the Fund’s purposes. The membership term is four years, with the possibility of renewal for a similar period of time.
The Suez Canal Authority posted its highest annual revenue of $7 billion in the fiscal year 2021-2022, up from $5.8 billion in the fiscal year 2020-2021, a $1.2 billion and 20.7 percent increase, amid rising international oil prices. The authority’s decision to raise the additional transit fees for loaded crude oil tankers to 15 percnet, while charging empty tankers 5 percent of the normal transit fees.
