Arab Investment Bank allocates EGP 1bn to finance Suez Canal Development Axis project: Bank Chairman

Hossam Mounir
2 Min Read
Director of EBA Mohamed Youssef said that the Chinese government offered to link Silk Road Economic Belt to the Suez Canal (Photo Presidency Handout)

The Arab Investment Bank (AIB) has allocated EGP 1bn to fund a number of projects that will soon begin at the Suez Canal Development Axis, according to Chairman and Managing Director Hany Seif El Nasr.

Seif El Nasr said, during the Euromoney conference on Monday, that the bank is currently studying a number of projects to be carried out as part of the Suez Canal Development Axis, including franchise projects in logistics, transport, navigation, and distribution.

He added that the bank’s size prevents its solo funding of large projects. However, he said, the bank could participate in funding such projects through syndicated loans, or finance smaller projects planned for the Suez Canal.

Further, according to the AIB’s chairman, the Suez Canal hosts thousands of small and medium enterprises, and should include opportunities set aside for young people.

He explained that a large project, such as shipping, can involve on-site small projects that include refrigeration, loading and transport, or other small projects that employ thousands of youths and create development and integration with medium and large projects to lead to significant development.

Additionally, Seif El Nasr said the bank will soon launch the first Islamic financing leasing company in the Egyptian market, with starting capital of EGP 100m.

He explained that the bank will contribute to the company, along with the Bank’s staff fund and the Islamic Foundation of the Islamic Development Bank.

He added that the statute for this company has been written, and 20% of the funding has been allocated for real estate, while the remaining 80% was set aside for machinery and equipment, noting that final procedures are being finalized in preparation for operations to begin soon.



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