Khalifa Fund for Enterprise Development activates US$200m development loan agreement for Egypt

ABU DHABI, 15th March, 2015 (WAM) -- The UAE's Khalifa Fund for Enterprise Development has activated the Loan Agreement signed by Khalifa Fund, the Egyptian Ministry of International Cooperation and the Egyptian Social Fund for Development last November for US$200 million to be invested in the development of the microfinance sector in the Arab Republic of Egypt, after meeting all requirements pertaining to legal procedures in the two countries, Hussain Jassim Al Nowais, Chairman of the Fund, announced. Making the announcement on the sidelines of the Egypt Economic Development Conference (Egypt The Future), organised by the Egyptian Government in Sharm el-Sheikh on Friday, Al Nowais said, "This agreement clearly indicates the extent of the keenness of the leadership in the United Arab Emirates to enhance and deepen the channels of cooperation and mutual relationships with Egypt, and confirms the importance which the leadership attaches to development projects that can bring economic and social benefit to the Egyptian citizens." "Khalifa Fund will soon disburse loan payments in favour of the Egyptian Social Fund for Development, with the expectation that this organisation will contribute towards creating more than 200,000 enterprises in the coming six years, and providing more than 200,000 job opportunities for the Egyptian citizens," said Al Nowais. "The loan aims at supporting the efforts of the Egyptian Government in combating poverty and unemployment, and promoting the role of women in development and empowerment through availing opportunities in case of those who have entrepreneurial attributes and skills to realise their ambition and to establish their own business that will contribute in enhancing their contribution to the national economy in the Arab Republic of Egypt." Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of the Coordination Office of UAE-funded Development Projects in Egypt, said, "I would like to congratulate Khalifa Fund for Enterprise Development and the Egyptian Ministry of International Cooperation for the activation of the agreement. We have full confidence that this collaboration will contribute to enhancing the efforts that aim at creating job opportunities, especially for women and youth. We look forward to realising the tangible results from this agreement in the near future." Al Jaber emphasised the importance of leveraging the platform offered by the Egypt Economic Development Conference and the opportunities presented. Al Nowais added, "The financing initiative is aimed at providing support to the Microenterprises Sector in Egypt through targeting remote areas and disadvantaged groups. There is also need to intensify efforts to promote comprehensive developmental efforts to upgrade them economically and socially, and provide a safety net of continuum towards achieving developmental benefits. Accordingly, this agreement concentrates mainly on directing funding towards the rural areas to finance up to 70 percent of the total funding directed to all the regions of the Republic." "The execution of the project will be based on directing the financing towards women so that 25 percent of the total enterprises expected to be financed through this agreement are those aimed at women, while the remaining financing will be directed for a diverse range of projects for men and women." "This loan will contribute to enhancing the social and economic stability of a large segment of the Egyptian society, and it will also contribute to support the governmental efforts to reduce poverty, enhance social welfare and support the Egyptian citizen. The loan is distinguished for its soft terms, with the tenure period of the loan reaching 15 years, with a six-year grace period," added Al Nowais. On the sidelines of the conference, Al Nowais met with Suha Suleiman Secretary-General of the Egyptian Social Fund Development to discuss the most efficient and effective ways to implement the project and achieve the desired results. They also discussed aspects of cooperation through holding exhibitions to display Egyptian products supported by Social Fund for Development, and also to enhance the export activities for entrepreneurs in both countries. The two parties also discussed the organisation of marketing and promotional campaigns to encourage Egyptians to benefit from the facilities to develop micro-finance enterprise in Egypt. "The target of this agreement is to improve livelihoods and create job opportunities for those most in need, especially women and youth. The agreement will provide estimated funds of one billion and five hundred million Egyptian pounds during the coming six years, which will result in financing 200 microfinance enterprises in the government and semi-government sectors that will lead to social stability which will improve the Egyptian economy," said Ms. Suleiman. "Seventy percent of the Social Fund targets are dedicated to the marginalised and rural areas in the poor parts of Egypt." Since its establishment, the Social Fund for Development has injected 20 billion Egyptian pounds to support two million small and microfinance enterprises, which led to the creation of three million job opportunities. The SFD also pumped in more than 12 billion pounds and gave loans to more than one million and 700 entrepreneurs in various sectors. "There will be contracts with more than 200 intermediaries for the implementation of the agreement throughout the duration of the project, about 50,000 women and 60,000 men below the age of 35. Sixty percent of the beneficiaries are below the poverty line," explained Suleiman. The UAE has allocated financial and technical assistance to Egypt to support the efforts of the country's government towards enhancing social, economic and political stability, and contributing to the support of development programmes to reduce poverty and unemployment and to enable them to get out of this critical stage in order to restore its leading and central role in the Arab world. – Emirates News Agency, WAM – http://www.wam.ae/en/news/emirates/1395277903937.html