Egypt, Saudi Arabia launch website on MSME development grant

Cairo: The Egyptian-Saudi Joint Committee for the development of Micro, Small and Medium-sized Enterprises (MSMEs) has launched a website to present its efforts in financing the MSMEs through Saudi Arabia’s grant that is worth $200 million dedicated to support Egypt’s efforts to close the gap between financial institutions and MSMEs and to facilitate their access to finance through financial intermediaries.

The website also provides a clear structure for intermediaries who require funding and would want to benefit from the grant through applying to the committee, according to a statement on Monday.

The website inauguration was attended by Rania El-Mashat, the Minister of International Cooperation; Ghadeer Hegazi, Assistant to the Minister for the Arab Funds and the head of the committee from the Egyptian side; Hassan Al-Attas, the head of the committee from the Saudi side; along with other representatives from the Egyptian side including Sherin Taha, Assistant to the Minister for the International Finance Cooperation and Economic Studies; Randa Hamza, Assistant to the Minister for Strategic Planning and Monitoring; and the Saudi side including Khaled Al-Ghanim and Nawaf Al-Sanid.

The website of the Egyptian-Saudi Joint Committee for the Development of MSMEs showcases the latest activities carried out by the committee and the intermediaries benefiting from the funds, in addition to the achievements made through the grant.

It also shows ways through which intermediaries benefit from the grant, which is considered one of the most prominent examples of partnership between Egypt and Saudi Arabia.

El-Mashat praised the distinguished Egyptian-Saudi strategic relations, which are reflected in the development financing offered for several projects across various sectors. The bilateral partnership includes the King Salman Program for the Development of the Sinai Peninsula, in addition to the grant offered for the development of MSMEs, which capitalise on the national and global sustainable development framework. The minister is looking forward to opening new horizons of partnerships with Saudi Arabia to achieve mutual progress for both countries.

She said that Saudi Arabia’s grant for the development of MSMEs plays a vital role in closing the financing gap between lenders and MSMEs in light of the paramount importance of these projects for Egypt’s economy, as a potential force supporting the growth of the economy. She pointed out that the Ministry of International Cooperation is keen to make use of the multilateral and bilateral partnerships in order to harness all the potential for the development of the MSMEs sector.

The Saudi grant has funded 2,500 MSMEs so far through financial intermediaries across 27 governorates; these projects have contributed to creating more than 12,000 job opportunities. The committee aims during the coming period to expand and reach the largest number of beneficiaries, such as project’s owners.

Al-Attas explained that the strategic relations between Egypt and Saudi Arabia are prospering pushing towards the achievement of the national development vision of Egypt 2030, which is in line with the global sustainability targets. He further elaborated that the launch of the website will facilitate access to the Saudi development financing directed to the support of the MSMEs force in Egypt, and will create a communication platform through which the beneficiaries can showcase their success stories resulting from the financial support received.

Al-Attas further added that the total cooperation portfolio between the two countries amounts to $30 billion, with over 6,000 Saudi companies working in the Egyptian market. He further elaborated that the Saudi Fund for Development (SFD) is working in line with the Ministry of International Cooperation’s development strategy; along with its economic diplomacy principles.

The National Bank of Egypt (NBE), the Agricultural Bank of Egypt (ABE), and the Micro, Small and Medium Enterprises Development Agency (MSMEDA) are the most prominent intermediaries through which the development financing is provided. There are as well beneficiaries of the direct grant financing; most notably EFG Hermes Financial Leasing Company, Enma Financial Leasing Company, Plus Leasing Company, ValU for Installment Sale Services, Global Leasing Company, and UE Financial Leasing Company.

The current portfolio of cooperation between Egypt and the Kingdom of Saudi Arabia amounts to $1.9 billion, managed through the SFD. A development financing worth $1.5 billion is earmarked for the development of the Sinai Peninsula projects, including the King Salman University, the first and second housing complexes, the development of roads, and the wastewater management and water desalination plants.