Egypt, Islamic Development Bank Group Sign $1.6 Billion Agreement to Boost Trade and Private Sector Growth

CAIRO – 4 February 2025: The Egyptian government has signed two agreements with the Islamic Development Bank Group, securing $1.6 billion in funding to support trade financing and private sector development. This initiative aims to strengthen Egypt’s economic landscape by providing financial resources to key sectors, fostering sustainable growth and economic resilience.

As part of this collaboration, the International Islamic Trade Finance Corporation (ITFC) signed its Annual Work Program for 2025 under a five-year framework agreement between both parties. Additionally, the Islamic Corporation for the Development of the Private Sector (ICD) formalized its 2025 Annual Work Program, aligning with the government’s strategy to enhance private sector participation in economic activities.

The agreement includes a total financing package of $1.5 billion, distributed as follows. $800 million will be allocated to the Egyptian General Petroleum Corporation to secure energy and petroleum supplies for the local market. Meanwhile, $700 million will go to the General Authority for Supply Commodities to support food security by ensuring the availability of essential and strategic goods.

Additionally, the ICD’s Annual Work Program will provide an extra $100 million to financial institutions to fund small and medium-sized enterprises (SMEs) and large private sector companies operating in key industries that drive economic growth and job creation. This funding is expected to reinforce Egypt’s private sector and investment climate.

Beyond direct financing, the agreement also promotes investment and advisory services in Islamic Sukuk financing for both public and private sector entities. Moreover, capacity-building programs will be introduced to enhance Islamic finance expertise, in line with Egypt’s vision to diversify funding sources, stimulate investment, and accelerate economic expansion.

Salm Sinbel, CEO of the International Islamic Trade Finance Corporation (ITFC), highlighted that since 2008, the ITFC has provided $18.7 billion in financing to Egypt. These funds have supported energy, food security, SMEs, exporters, and women-led businesses, reflecting the organization’s commitment to economic empowerment and sustainability.

Looking ahead to 2025, the ITFC aims to strengthen cooperation with partners and introduce new initiatives that empower women, youth, micro-businesses, SMEs, and exporters. These efforts are expected to further enhance Egypt’s private sector, boost employment opportunities, and drive economic development.