Boost For SMEs, Gulf Banks In Egypt

Small and medium-sized Egyptian businesses have received a boost with the news that the Egyptian government is to sign a $200 million loan agreement with the World Bank, with the funds to be allocated to small projects through a Social Development Fund to create jobs for Egyptians.

Planning and International Cooperation Minister Ashraf al-Araby will sign the agreement with Inger Andersen, the World Bank’s vice president for the Middle East and North Africa region. Araby has also confirmed that a strategy to double national income will be finalised by next week.

It is the latest show of support for Egypt by the World Bank, who have also agreed to give the country another $200 million to fund the upgrade of sanitation and sewage infrastructure in four governorates in the Nile Delta and Upper Egypt. It is not just international financial organisations that are showing renewed interest in the recovering economy, however. The news that BNP Paribas is to seek preliminary bids for its Egyptian retail banking business in a bid to quit non-core operations and raise over $400 million has top regional banks in the Gulf Arab region on standby.