Emirates NBD, Turkish Hayat sign €30 mln loan to establish tissue facility in Ain Sokhna
The factory is expected to contribute approximately $80 million to Egypt's exports while creating 80 new direct employment opportunities.
By providing financing to hygienic product manufacturers and supporting the expansion of local manufacturing capabilities, the bank actively contributes to the growth of the Egyptian economy and reinforces its commitment to Egypt Vision 2030, said Amr El-Shafei, managing director and CEO of Emirates NBD-Egypt.
Emirates NBD-Egypt's strategic growth plan centres on expanding its market share within Egypt's banking sector and establishing a robust presence in the Egyptian market, read the bank’s statement.
Senol Keserlioglu, general manager of Hayat Egypt, expressed the company's dedication to transforming Egypt into a hub for Hayat's regional exports.
Emirates NBD, a leading bank in the GCC region and the UAE, made its entry into the Egyptian market in June 2013 through the acquisition of BNP Paribas Egypt in a deal worth $500 million.
Currently, Hayat Egypt owns and operates five factories in the country, employing 1,500 people and representing a total investment of $550 million. Hayat Holding, the parent company, has an extensive presence with units in 13 countries.
Egypt has become an attractive destination for Turkish companies, with 790 currently operating in the country. These companies have invested $2.5 billion locally, according to Minister of Finance Mohamed Maait.
Moreover, top business executives revealed plans for Turkish ready-made clothes and textiles companies to open new factories and stores in Egypt in the near future during a meeting with Egyptian Minister of Trade and Industry Ahmed Samir in October.
This influx of Turkish investment aligns with Egypt’s objective of attracting more foreign investments and increasing the private sector's role in the economy from the current 30 percent to an ambitious 65 percent in the coming years.
This warming of economic relations between both countries represents a significant shift from the political tensions that characterized their interactions between 2013 and recent years.
Earlier this year, Egypt and Turkey expressed their intention to further develop trade exchange and encourage Turkish investments in Egypt.
Trade between the two countries rose by 14 percent to $7.7 billion in 2022, up from $6.7 billion in 2022, according to the Central Agency for Public Mobilization and Statistics in March.