Sharm el-Sheikh, Egypt, 14.03.2015 - On the occasion of the Egypt Economic Development Conference in Sharm el-Sheikh, 13–15 March, 2015, the Islamic Development Bank (IDB) Group signed six agreements worth US $3.9 billion to support infrastructure development, energy, transport and trade. The agreements were signed by HE Dr. Najlaa Al Ahwani, Minister of International Cooperation and Mr. Hani Mohammed Saif Al-Nasr, Chairman of the Arab Investment Bank, on behalf of Egypt, and Dr. Ahmad Mohamed
Ali, Chairman, IDB Group.
The agreements included the following key operations:
- US $457 million for contribution to Development of the first and second phases of the Sharm el-Sheikh International Airport project
- US $220 million for contribution to installation of a 3000 megawatt AC/DC transformer substation in the "Badr" region as part of the Power transmission project between Egypt and Saudi Arabia
- US $198 million for oil refinery development project in Assiut which is expected to meet the growing demand for fuel in the Janubul Wadi region
- US $3 billion framework agreement with the International Islamic Trade Finance Corporation (ITFC), the trade arm of the IDB Group, to finance import of commodities such as oil, oil-products, and food commodities for 3 years
- An agreement between the Arab Investment Bank and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector development arm of the IDB Group, to establish a leasing company with an authorized capital of US $21 million, aimed at developing the finance as well as the small and medium size business sectors in the member countries
The Arab Republic of Egypt is one of the major beneficiaries of the IDB Group with about US $12.2 billion so far. The IDB group is expected to shortly sign an agreement with Egypt to establish an IDB Group “Gateway Office” in Cairo. A partnership strategy between Egypt and the IDB Group is also under preparation. Priority areas for the Egyptian economy in the coming years include infrastructure (energy, transport), youth employment and job creation as well as transfer of Egyptian experience and
capacity development to other member countries.