Egypt’s parliament on Tuesday approved legislation formalising the rapid expansion of the military-linked Future of Egypt Authority and placing the powerful economic body directly under presidential supervision.
The law consolidates the authority’s transformation under President Abdel Fattah al-Sisi from a land-reclamation initiative established in 2017 into a sprawling state organisation operating across agriculture, fisheries, real estate, investment and the import of strategic commodities.
The authority will be granted broad powers covering economic planning, licensing, land allocation, investment management, asset administration, oversight and revenue collection. It will also be exempted from several existing legal frameworks.
The legislation comes as the International Monetary Fund continues to press Egypt to reduce the economic role of state- and military-owned companies and create fairer conditions for private businesses.
Military-linked firms and state entities have long benefited from advantages including tax exemptions, access to valuable state land and relatively cheap labour, according to critics and international lenders.
The House of Representatives approved the bill following two days of debate and a review by a joint parliamentary committee.
Lawmakers introduced several amendments, including a requirement for parliament to approve the designation of new “development zones”, oversight by parliament and Egypt’s state auditing agency, and limits on annual increases in fees imposed within those zones.
Future of Egypt did not immediately respond to a request for comment.
Authority says reforms will improve governance
Bahaa al-Ghannam, the authority’s executive director, told lawmakers that the legislation was designed to restructure its governance and formally establish its direct subordination to the president.
He said the authority should be regarded as an incubator that creates opportunities for private investors rather than as an investor competing directly with them.
The law also establishes a sovereign investment fund named Pyramids of the Nile, alongside a separate services fund.
However, several lawmakers raised concerns about the authority’s extensive powers and legal exemptions.
MP Reda Abdel Salam said parliament had amended around 80% of the provisions that had drawn objections, with the aim of improving transparency, oversight and competitive neutrality.
He said any remaining concerns could be addressed if problems emerged during implementation.
Atef al-Meghawry, another lawmaker, said parliament had not been given sufficient time to examine the legislation or consult independent experts.
He also rejected claims that legal exemptions were necessary to accelerate the authority’s activities, arguing that such reasoning effectively amounted to declaring the failure of Egypt’s existing government institutions.
The legislation will take effect once it is ratified by President Sisi.