KFAED sign $85.7 million loan for Egypt Sinai project

CAIRO: The Kuwait Fund for Arab Economic Development (KFAED) on Monday signed a loan agreement with Egypt worth KD 26 million ($85.7 million) to finance the project of the tunnel road in Sharm El Sheikh. Under the deal, the loan which will be repaid within 22 years will fund the project which is the beginning of financing the second phase of the Sinai Peninsula Development Program, Deputy Director General of KFAED Marwan Al-Ghanim said in a news statement. The KFAED will offer several loans worth KD 300 million ($989.2 million) to finance some projects for 2020-2022, he added. The agreement was signed on the sidelines of His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah’s visit to Cairo, where he met with the Egyptian leadership. The Arab Fund for Social and Economic Development, the Saudi Fund for Development and the Abu Dhabi Fund for Development are contributing alongside the KFAED to the Sinai Peninsula Development Program.

Deep-rooted ties

In the meantime, a number of Egyptian and Kuwaiti businessmen have extolled the depth of relations between Kuwait and Egypt. This came in statements to the press at the end of the Egypt-Kuwait business forum on Monday, on the sidelines of His Highness the Prime Minister’s visit to Cairo. They called for enhancing ties to reach wider horizons mainly in economy. President of the Kuwait Industries Union (KIU) Hussein Al-Kharafi stressed that the Egyptian market is promising and has big chances in light of positive developments in investments. He praised facilitations made by the Egyptian investment authority for foreign investors, mainly the Kuwaitis.

Meanwhile, Chairman of Jazeera Airways Marwan Bodi said the Egyptian investment ministry allocated one facility containing all ministries and bodies to offer easily required services for foreign investors. He said Egypt began offering more guarantees for investors. Also, Secretary General of the Confederation of Egyptian European Business Associations Alaa Ezz said the forum reviewed investment opportunities in many domains like new energy projects, tourism and others. He noted that Egypt has become the world’s largest solar complex.

Among the chances are infrastructure projects, reclaiming 2.5 million acres, new administrative capital and others, he stated. A team of Kuwait Chamber of Commerce and Industry visited Cairo as part of the accompanying delegation of His Highness the Prime Minister.

Ambitious plan

Kuwait has an “ambitious plan” in store aiming to rejuvenate the local market and lure foreign investment with promising projects, said the Gulf state’s Chamber of Commerce and Industry (KCCI). Tariq Al-Muttawa, a chamber member, made the remarks amid talks over Kuwaiti-Egyptian economic cooperation, held as part of His Highness the Prime Minister’s visit to Cairo. “This plan will enable Kuwait to contribute towards development in Egypt,” he said, disclosing that total Kuwaiti non-oil investments in Egypt are more than $4 billion, citing official Egyptian government statistics. These investments cover “vital sectors such as tourism and real estate,” added the official, saying that bilateral trade was worth $482 million last year. He went on to commend the Egyptian government on introducing a spate of economic reforms as of late, helping usher in sustainable development. —KUNA