Saudi Arabia grants Egypt EGP 150 mln to support small industries

The agreement aims to help industrial projects across Egypt's governorates secure raw materials and other production inputs, with a special focus on the value chain, said Bassel Rahmy, CEO of MSMEDA, according to a statement on Tuesday.

The value chain contains all the steps needed to make a product available to customers. This includes finding materials, making the product, customers buying and using the product, and recycling or disposing of the product when customers are done with it.

The agreement will also finance the purchase of machines and equipment, working capital and construction works, Rahmy added on the sidelines of the three-day-long SAGC meetings in Cairo, which ended on Tuesday.

Rahmy revealed that the agreement will provide around 520 entities with financing, creating 1,200 jobs.

The SAGMC has so far provided EGP 1.5 billion (about $48.5 million) in funding to 3,524 projects in 27 governorates, which have contributed to the creation of about 17,000 jobs.

The committee, which is affiliated with the Saudi Fund for Development (SFD), extends its finances to micro, small and medium projects through intermediary entities including the National Bank of Egypt and MSMEDA.

According to official statistics, Saudi investments in Egypt in the fiscal year 2021/22 amounted to $491.6 million, up from $325.3 million in the previous fiscal year, an increase of 51.1 percent.