Arab Fund Signs First Private Sector Deal in Egypt with NBE

The Arab Fund for Economic and Social Development has signed its first-ever private-sector financing agreement in Egypt: a $50 million deal with the National Bank of Egypt (NBE) aimed at supporting micro, small, and medium-sized enterprises (MSMEs). This facility is part of a wider $400 million package arranged by the European Bank for Reconstruction and Development (EBRD).

This agreement marks a significant new direction for the Arab Fund, which has historically financed public infrastructure projects like roads, water systems, and energy networks. Now, its focus includes strengthening Egypt’s entrepreneurship landscape, particularly among young people and women-led ventures.

The Arab Fund and EBRD will also roll out a series of training workshops and advisory programs to boost competitiveness across the sector. Funding will be distributed through NBE’s extensive network of nearly 700 branches nationwide, including remote and underserved regions.

With over 22 million clients, NBE remains the largest MSME lender in Egypt and a key player in delivering financial access to smaller enterprises. Founded in Kuwait in 1968, the Arab Fund is one of the oldest regional development banks in the Middle East. Egypt is its largest investment destination, with over $5 billion allocated to various projects. Since 2020, the country has also secured more than $15.6 billion in concessional finance for private businesses.