Egypt discusses cooperation with Islamic Society for Private Sector Development
FILE: Minister of International Cooperation Rania al-Mashat
CAIRO – July 7, 2021: Minister of International Cooperation Rania A. Al-Mashat met with Ayman Amin Sejiny, CEO and Managing Director of the Islamic Corporation for the Development of the Private Sector (ICD), at the headquarters of the ministry.
Al-Mashat welcomed Sejiny to Egypt and thanked ICD and its board for their continued support to private sector activities, for helping to accelerate development rates and economic activity.
The Minister discussed future possibilities for cooperation with ICD in light of the challenges of the COVID-19 pandemic, noting that the change posed by the health crisis has sparked an open dialogue on the need for development finance and strengthened the importance of supporting the private sector.
Al-Mashat highlighted the effective and important role played by the DCI in encouraging the flow of foreign direct investment to Arab countries and to strengthen inter-Arab investment, stressing the commitment of the Egyptian government to develop relations with society. This is part of the historical relationship between the DCI and Egypt, and also comes in light of the country’s plan to increase activities with the private sector to support accelerated development. This has led to an improvement in the contribution of the private sector to Egyptian GDP from 69% to 74% over the past three years.
The Minister noted the significant improvement in the Egyptian economy in recent years as it became the second fastest growing economy in the world during the pandemic, and it recorded the third fastest growing economy in the world. 5.6%, followed by China and India, before the pandemic. This is reflected in the improvement of investment opportunities and in the increase in financing required to strengthen the activities of the Egyptian market.
Al-Mashat also expressed that the Egyptian banking system has improved over the past 5 years, especially with the implementation of the monetary reform program and the liberalization of exchange rates at the end of 2016. This is reflected in the volume of business, the growth of asset portfolios, and enhanced security indicators in banks. The financial situation of the banking system in Egypt allows it to obtain development financing intended to serve Small and Medium Enterprises (SMEs), and it also supports the improvement of the conditions for granting financing to Egyptian banks.
Sejiny said that Egypt has experienced a qualitative and tangible development of the investment climate during the last period. This has increased the propensity of investors to support the entrepreneurial scene, capitalizing on their innovation and digitization, which will boost overall economic growth.
He added that the DCI is supporting 27 projects across Egypt, worth $ 217.6 million; all dedicated to supporting the private sector. Sejiny pointed out that the DCI finances the financial sector (lines of finance, bank and non-bank stocks, advisory services and environmental support to industry and businesses (IBES); the business sector (infrastructure, business finance and bonds; and the private sector (fund management and investments to support production capacity).
The DCI is a multilateral development financial institution affiliated with the Islamic Development Bank Group (IDB), established in November 1999 to support economic development in member states by financing private sector projects, encouraging competition and entrepreneurship, and providing advisory services to governments and securing cross-border investments.
The capital of the company amounts to 4 billion dollars; including $ 2 billion available by subscription. The shareholding structure of the DCI consists of the IDB (45%), 52 Member States (46%) and 5 public financial institutions (9%); aimed at establishing, developing and modernizing the private sector by financing businesses and projects.