Egypt is exploring the creation of a new entity to take ownership of the country's state-owned companies, according to Minister of Planning and Economic Development, Hala El Said.

Prompted by the World Bank’s recommendation for its establishment, the entity would align with the government's strategy to implement its state ownership policy document, aiming to strategically divest from specific sectors and bolster the involvement of the private sector in the economy.

El Said told Al Borsa that it would also aim to streamline the implementation of state asset sales, and would act as a separate entity from the Sovereign Fund of Egypt (SFE).

The SFE has received several state-owned assets as part of the fund’s pre-IPO fund and the state privatization program.

To encourage the private sector’s involvement in the local economy as part of a $8 billion package from the IMF, Egypt is currently seeking to withdraw from 7 sectors, mainly namely pharmaceuticals, chemicals, and construction industries.

Egypt is preparing to launch a $1.1 billion program to implement the state ownership policy document, according to an April statement by the World Bank.

The World Bank will reportedly provide $1 billion in financing for the program, which aims to create the entity to centralize management of state-owned assets.

Egypt’s sovereign fund is looking forward to conducting a promotional tour in June to promote the country’s vast investment opportunities in the Gulf region, El Said explained on Sunday in a separate interview.

The tour will include meetings with the sovereign funds of Gulf states, financial institutions, and investors.