H.E. Dr. Rania Al-Mashat: A new partnership with the Arab Fund to empower the private sector, expand job opportunities, and support women’s economic inclusion.
Cairo, Egypt – July 22, 2025 – The Arab Fund for Economic and Social Development (Arab Fund) announced its first private sector engagement in Egypt, providing USD 50 million to the country’s largest state-owned bank, the National Bank of Egypt (NBE), to support Micro, Small and Medium sized Enterprises (MSMEs). The agreement will see NBE expand financing to its business clients with a focus on MSME enterprises and entrepreneurs in Egypt.
The Arab Fund’s loan, amounting to nearly EGP 2.5 billion, runs parallel to a financing package of up to USD 400 million arranged by the European Bank for Reconstruction and Development (EBRD). The funds provided under this Facility will be used in both urban and rural areas; through the vast network of branches and various lending programs in NBE that focus on the productive sectors that stimulates employment and economic diversification. This strategic partnership reflects a shared commitment to sustainable development, poverty alleviation and empowerment of the MSMEs sector.
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, stated that from 2020 to mid-2025, the Ministry succeeded in mobilizing over USD 15.6 billion in concessional development finance for the private sector, through partnerships with international and regional financial institutions. She added that this progress reflects a clear national vision to empower the private sector as a cornerstone of sustainable development, through the expansion of concessional financing and the deepening of partnerships with international and regional development institutions. She noted that this new partnership with the Arab Fund represents a strategic shift—directing more development finance toward the private sector. It also supports national priorities to generate employment opportunities and promote women’s economic empowerment.
The Agreement was signed by Mohamed El-Etreby, Chief Executive Officer of the National Bank of Egypt, and Bader Alsaad, Director General and Chairman of the Arab Fund.
“This strategic partnership with the Arab Fund will set the foundation for future collaboration and support MSMEs as NBE continues to create meaningful opportunities for our clients, helping them expand their sustainable finance. Moreover, NBE’s engagement with the Arab Fund is another example of the kind of partnership that the Egyptian financial system nurtures with multi-lateral development agencies designed to catalyze and reach Egypt’s strategic objectives under the guidance of the Central Bank of Egypt (CBE), and as espoused under the Sustainable Development Strategy Egypt Vision 2030,” says Mr. El-Etreby.
In emerging economies like Egypt, MSME growth fuels job creation and effectively integrates the increasing youth population into the job market, which is crucial for tackling unemployment.
“The private sector is a key engine for inclusive growth and job creation, especially in large economies and big markets like Egypt,” says Mr. Alsaad. “Partnering with the largest bank in Egypt and a leading trusted bank like NBE supports our new strategic priorities which focus on expanding access to finance for small businesses, empowering women and creating jobs for youths.”
NBE is a market leader in Micro and SME financing, offering services to over 22 million customers through its vast presence across the continents. NBE’s extensive distribution network of almost 700 branches provide unparalleled outreach, enabling efficient channeling of funds where they’re needed most.
Egypt represents Arab Fund’s largest portfolio with investments exceeding $5 billion across various critical sectors. The partnership marks a significant milestone in the Arab Fund’s recently announced strategy, representing a shift from solely public-sector lending to include private sector support to maximize development impact and accelerate economic growth.
About the National Bank of Egypt:
NBE is the oldest commercial bank in Egypt, established on June 25, 1898, with a capital of GBP 1 mn. Throughout its long history, NBE’s functions and roles have continually evolved to adapt to and serve the economic and political developments in Egypt. It was the first bank to issue banknotes in Egypt, as it assumed the functions of the central bank. It continued to be an issuing bank for over 60 years until it was nationalized in 1960 and its ownership transferred to the state. In January 1961, the Central Bank of Egypt (CBE) was established and NBE continued to act purely as a commercial bank.
NBE is committed to delivering top-quality and cutting-edge banking services and products to its customers to retain their valuable trust and confidence and to maintain its leadership in the local financial market.
About the Arab Fund:
The Arab Fund for Economic and Social Development is a regional financial institution based in Kuwait, established in 1968 to support the economic and social development of Arab countries. Through loans, grants, and technical assistance, the Arab Fund finances infrastructure, education, health, water and sanitation and public service projects that contribute to sustainable development and regional cooperation across the Arab world.