The Islamic Development Bank Group contributes to more than 57 projects under implementation in Egypt with $3.8 billion

Dr. Bandar Hajjar, Chairman of the Islamic Development Bank (IsDB) Group stated that the IsDB is currently implementing 57 projects in Egypt totalling $3.8 billion.

He added that the Group is keen on providing the necessary support to Egypt during the Covid-19 pandemic and that he had a recent video conference with Dr. Hala Al-Saeed, Minister of Planning and Economic Development and IsDB Governor and Dr. Rania Al-Mashat, Minister of International Cooperation of the Arab Republic of Egypt to reaffirm the IsDB’s support to Egypt to overcome this global crisis.

During the meeting, the discussions touched upon the negative impact of the Covid-19 pandemic and the IsDB’s readiness to provide Egypt with $126 million to support its efforts in combating the pandemic. The IsDB Group also contributed $200 million through the International Islamic Trade Finance Corporation (ITFC) to support the Egyptian government in purchasing strategic commodities and make them available on an urgent basis during the Covid-19 pandemic.

The Chairman of the IsDB Group also said that the long term IsDB-Egypt partnership resulted in providing Egypt with financings amounting to $12.8 billion to date, distributed as follows:

• Projects financed by the IsDB: $1.9 billion
• Private sector financing operations by the ICD: $230 million
• Trade financing operations by the ITFC: $8.9 billion.

Other IsDB funds and programmes contributed financings amounting to about $1.8 billion. In addition, ICIEC provided $2.4 billion in trade transactions insurance and $3 billion in new insurance commitments.

Answering a question about the main sectors financed by the IsDB in Egypt, H.E President of the IsDB said that energy comes at the front of sectors financed by the IsDB with 19 projects totalling $1.6 billion accounting for 80.7% of IsDB interventions in Egypt. The remaining of the financing is allocated to the urban development, industry, and mining and transport sectors, which account for 8.7% of the total IsDB projects ($169 million). IsDB contributions to microfinance institutions and small and medium enterprises account for 4.1% of the total IsDB interventions ($81 million), while the health and education sectors account for 4% ($77.5 million) and 2.4% of the interventions ($47 million) go to the agriculture and irrigation sector in addition to capacity building projects and Islamic finance industry development.

IsDB support to Egypt focuses on the achievement of eight Sustainable Development Goals (SDGs) that cover poverty and hunger eradication, achieving good health, improving the quality of education, providing clean energy and potable water, crating decent employment opportunities especially for youth and women, creating sustainable infrastructures, assisting industry and the innovation and creativity environment.

Furthermore, the IsDB institutions have also contributed to developing and encouraging the trade and exports sector and supporting the private and the insurance sectors with contributions amounting to more than $13.2 billion.

Original source: IsDB
Published on 13 July 2020