The Takaful and Karama welfare programs will be getting their own dedicated investment fund after the prime minister approved a proposal during a meeting of the Social Justice Committee on Tuesday, according to a cabinet statement. The fund will invest pensions in the capital markets to maximize savings and expand the number of beneficiaries. The government has moved to bolster welfare programs in response to the pandemic, increasing budget allocations for pensions to EGP 170 bn and EGP 19 bn to social security and Takaful and Karama in the FY2020-2021 budget.

BACKGROUND: Takaful and Karam are very successful welfare programs that provide cash-based subsidies to eligible beneficiaries.

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