Egypt’s Minister of Investment and International Cooperation Sahar Nasr has inked three EGP 125 mn grants with the Saudi Fund for Development (SDF), in a bid to boost financial leasing for small- and medium-sized enterprises (SMEs), Invest-Gate reports. 

The agreements were signed with EFG Hermes Leasing, Global Leasing Company (GLC), and UE Finance, coming as part of the ministry’s initiative to support financing projects/programs, which contribute to creating more jobs, expanding social solidarity, and providing financial services for SMEs, Nasr confirmed in a ministerial statement on July 10. 

The first contract entails that the kingdom’s management committee would grant EGP 75 mn of financing to EFG Hermes Leasing, 50% of which would be directed toward the agriculture and livestock sectors. As for the second deal, the council will provide an EGP 25 mn loan to GLC, while presenting EGP 25 mn for UE Finance under the third one, she stated.

“All agreements state that SMEs working in the fields of new and renewable energy, health care, industrial, 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 existing or newly-established ones,” read the statement. 

According to the statement, the financing provided under the agreements could reach 100% of the investment cost of each beneficiary project, which will essentially expedite the growth of these companies and maximize the results of their businesses.

Besides, Nasr revealed, “There is an agreement with Saudi Arabia to finance infrastructure projects and inject new investments in Egypt. Bilateral relations between both sides are solid and the upcoming period will witness new agreements with KSA to improve the Egyptian transportation sector.”

The signing took place in the presence of Egyptian Minister of Transport Kamel El Wazir and Saudi Ambassador to Egypt, Permanent Representative of Saudi Arabia to the Arab League Osama Bin Ahmed Nuqali, amidst other dignitaries.