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Egypt : Egypt and Saudi Arabia Sign Three Agreements to Provide Financial Leasing Services for SMEs with an Amount of 125 million Egyptian Pounds
Publish Date : 19-Jul-2019
This grant contributes to giving a greater role to the private sector in the frame of the diversity of financial instruments that contribute to supporting entrepreneurs. Ambassador Osama El-Nuqali: Saudi Arabia is working to pump more investments in Egypt, either through Saudi Fund for Development or through private sector investments.
Minister of Investment and International Cooperation Dr. Sahar Nasr signed three financing agreements with the Saudi Grant Management Committee, a subsidiary of Saudi Fund for Development (SFD); the agreements included the signing with EFG Hermes for Leasing, Global Lease Company, and UE Finance with an amount of 125 million Egyptian Pound. These agreements have been signed in the presence of Minister of Transport Lieutenant General Kamel Al-Waziri; and Saudi Ambassador to Egypt Osama El-Nuqali; as a part of Ministry of Investment and International Cooperation's initiative to support financing projects programs, which contribute to creating jobs and expanding social solidarity; and providing finance services for small, medium and micro enterprises.
The first agreement states that the Saudi Grant Management Committee shall finance EFG Hermes for Leasing with an amount of 75 million Egyptian Pound; while 50% of this grant shall be directed towards the agricultural sector and livestock. The agreement was signed by Head of the Egyptian side of the Saudi Grant Management Committee Dr. Shehab Marzban; Head of the Saudi side of the Saudi Grant Management Committee Eng. Hassan Al-Attas; Managing Director of EFG-Hermes for Leasing Mr. Ahmed El-Khouly; and General Manager of the Group Mr.Talal Mohammed Hamza El-Ayat.
The second agreement states that the Saudi Grant Management Committee shall finance Global Lease Company with an amount of 25 million Egyptian Pound. The agreement has been signed by the Egyptian and Saudi Heads of the Saudi Grant Management Committee; and CEO and Managing Director of Global Lease Company Mr. Hatem Mohamed Samir Abdul Hamid. The third agreement states that the Saudi Grant Management Committee shall finance UE Finance with an amount of 25 million Egyptian Pound. The agreement has been signed by the Minister; the Egyptian and Saudi Heads of the Saudi Grant Management Committee; and Managing Director of UE Finance Mr. Ahmed Abdel Moneim Shaarawy.
All agreements state that micro, small and medium-sized enterprises working in the fields of new and renewable energy, health care, industry, agriculture and livestock in Upper and Delta governorates shall benefit from this finance. Financial leasing services will include purchasing machines, equipment, and constructions necessary for the beneficiary projects, whether these projects are existing or newly established. The amount of financing granted to entrepreneurs may reach 100% of the project's investment cost, which will accelerate the growth of these companies and maximize the results of their business. Minister of Investment and International Cooperation Dr. Sahar Nasr stressed that these agreements are grants provided by the Saudi Fund for Development to support SMEs and entrepreneurship, pointing out that this grant contributes to giving a greater role to the private sector within the diversity of financial instruments that contribute to supporting entrepreneurs.
The minister said that there is an agreement with Saudi Arabia to contribute to infrastructure projects, financing the private sector and pumping new investments, stressing the strong relations between Egypt and Saudi Arabia, pointing out that the coming period will witness cooperation between Egypt and Saudi Arabia in the transportation sector. Saudi Arabia's ambassador to Cairo Mr. Osama Al-Nuqali said that Saudi Arabia is working to pump more investments into Egypt, adding that these investments are in addition to Saudi investments in Egypt, whether through the Saudi Development Fund or private sector investments.
Head of the Saudi side of the Saudi Grant Management Committee Eng. Hassan El-Attas said that the grant is directed to support entrepreneurship incubators, through which start-ups and large companies will emerge, pointing out that this grant is to support SMEs. Managing Director of EFG-Hermes for Leasing Mr. Ahmed El Khouly said that financing leasing services for micro-enterprises, new and renewable energy projects and health care will be provided in Upper Egypt governorates. CEO of Global Lease Company Mr. Hatem Sameer said that there is a big hope that this agreement will contribute to SMEs financing. Managing Director of UE Finance Mr. Ahmed Shaarawy said that through this agreement SMEs will be supported.