Five investment banks have pledged to establish specialised investment funds to support the industrial sector. This would strengthen the link between financing and production, expanding industrial capacity, increasing employment rates, and supporting sustainable economic growth.
The announcement was made during an expanded meeting chaired by Mohamed Farid, Minister of Investment and Foreign Trade, and attended by Khaled Hashem, Minister of Industry, alongside senior officials from the Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX), the Industrial Development Authority (IDA) and the Sovereign Fund of Egypt. Representatives of investment banks EFG Hermes, Beltone Holding, Cairo Capital, CI Capital, and Al Ahly Pharos also participated.
The meeting aimed to direct investment and financing instruments towards supporting qualified industrial projects and enabling their expansion and increased production. Ultimately, this move would help boost industrial development and exports and create employment opportunities. Furthermore, the initiative seeks to connect liquidity available within capital markets to the actual needs of industry. It also targets increasing financing directed towards productive sectors, enhancing the competitiveness of Egyptian industry both domestically and internationally, and strengthening its contribution to gross domestic product.
For his part, the Minister of Investment and Foreign Trade stressed that the ministry acts as an “enabler”, bringing together relevant stakeholders and preparing the necessary environment without directly engaging in commercial activity. He highlighted the institutional approach adopted since assuming office. He also pointed out that Egypt possesses the legislative framework needed for establishing diversified investment funds that can be directed towards supporting the real economy, particularly the industrial sector.
Farid explained that industrial project growth is no longer dependent solely on product quality, but also on the availability of flexible and innovative financing tools that enable expansion and improve operational efficiency. He pointed to several industrial companies that recorded noticeable improvements in financial and operational performance following listing and offering on EGX, shedding light on the strategic importance of capital markets as a financing mechanism capable of enabling factories to move into larger expansion phases.
He added that the proposed package includes a range of investment funds, including transferable securities funds, direct investment funds, and equity- and debt-based financing funds. It provides flexible financing solutions that is in line with the changing needs of industrial enterprises, while allowing market performance to determine the success of the model.
The Minister further noted that a financing database will be developed in cooperation with the Ministry of Industry to facilitate opportunity assessment by investment banks, accelerate capital deployment, and link financial products with national development priorities, particularly priority industrial sectors.
Farid emphasised that mobilising savings and directing them towards productive investment is a key priority. He said that the Sovereign Fund of Egypt plays a potential role in promoting industrial opportunities and attracting investment partners, which increases capital inflows into the industrial sector.
He called on investment banks to swiftly translate agreed outcomes into clear implementation steps, and stressed that streamlined procedures, transparent criteria and rapid decision-making are essential to increasing industrial investment and generating new employment opportunities.
The Minister also confirmed that the Sovereign Fund of Egypt will act as a strategic partner to investment banks in launching industrial investment funds, with the cooperation aimed at strengthening the financial sector’s capacity to channel financing directly towards promising industrial projects, expanding productive capacity and supporting sustainable economic growth.
He also announced the launch of an intensive schedule of meetings with export councils and chambers of commerce to present explanatory frameworks and simplify procedures, ensuring alignment between financing products and Egypt’s development priorities.
For his part, the Minister of Industry stated that the meeting aims to link capital market liquidity with the real needs of industry and promote a culture of industrial investment among citizens, contributing to increased financing directed towards productive sectors, improved industrial competitiveness, and enhanced contribution to GDP.
Hashem added that the Ministry of Industry is focused on preparing factories to become investment-ready, noting that industrial support extends beyond financing to ensuring project readiness, scalability and genuine economic viability.
He also stated that the ministry will cooperate with the Ministry of Investment and investment banks in due diligence and evaluation processes to ensure financing is directed towards export-oriented and high-potential projects, deepening local manufacturing, reducing reliance on imports and opening new export markets.
The Minister of Industry urged investment banks to move forward quickly in accordance with defined timelines. He also stressed that timing is a decisive factor in enabling factories to capitalise on available opportunities, while confirming the ministry’s readiness to provide data and technical support to accelerate evaluation processes and financing deployment.
