Egypt has successfully secured on February 4 a $1.6 billion loan from the Jeddah-based Islamic Development Bank (IsDB) Group to bolster its critical sectors and stimulate economic growth. The loan package is part of a broader strategy to increase private sector participation in Egypt’s economic development.
A significant component of this initiative is a $1.5 billion deal with the Islamic Trade Finance Corporation (ITFC), a subsidiary of IsDB, which forms part of a five-year, $6 billion framework aimed at enhancing the country’s energy sector and supporting food security.
The funding will be allocated across key sectors, with $700 million earmarked for Egypt’s General Authority for Supply Commodities and $800 million directed to the Egyptian General Petroleum Corporation. Additionally, the Islamic Corporation for the Development of the Private Sector, another arm of the IsDB Group, will provide $100 million to support small and medium-sized enterprises (SMEs) as well as larger private sector companies operating in vital industries. This comprehensive financial support is expected to drive economic development, encourage export growth, and create new job opportunities for both youth and women.
This loan comes at a time when Egypt is seeking to diversify its sources of funding. Last month, Cairo outlined plans to raise up to $40 billion through its global medium-term note programme. The country has also been in talks with the European Union for €4 billion in financing to support its ongoing reform efforts. Additionally, Egypt was expecting $1.2 billion from the International Monetary Fund in January as part of its $3 billion extended fund facility agreement signed in December 2022.
