Islamic Development Bank promises major investments in Egypt

Islamic Development Bank promises major investments in Egypt

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Thu, 18/04/2013 - 18:17

The Islamic Development Bank plans to pump US$3 billion into the Egyptian market over the next five years, said on Thursday Khaled Aboudy, head of the bank’s subsidiary, the Islamic Corporation for Private Sector Development.

The bank sees promise and many long-term investment opportunities in the Egyptian market, Aboudy said, adding that the funds would come in the form of financing and investment.

Over the past few years the bank has made investments in Egypt worth US$3 billion, of which US$1 billion came during the last year alone, Aboudy continued.

The Islamic Bank increased its investments in Egypt after the 25 January revolution, at a time when several international institutions had doubts about investing in the nation. The bank’s main objective is to support development, claimed Aboudy.

The government is struggling to attract investors in the midst of steep economic decline. It’s counting on foreign aid, including a long-awaited US$4.8 billion loan from the International Monetary Fund, to help bridge a gaping LE198 billion deficit in the next fiscal year, and to shore up drastically eroding foreign reserves.

This month, Egypt received bonds worth US$3 billion from Qatar, as well as a US$3 billion loan from Libya.

Edited translation from MENA