Font Size

- Aa +

Fri 29 Jul 2011 04:25 PM

Font Size

- Aa +

World Bank lender invests $50m to spur Egypt jobs

International Finance Corporation invests in construction firm Orascom to help create new jobs

World Bank lender invests $50m to spur Egypt jobs
(ITP Images - for illustrative purposes only)

The International Finance Corporation (IFC), the World Bank's private-sector lending arm, said on Friday it would make a $50 million equity investment in Egypt's Orascom Construction Industries (OCI) to help create jobs and spur investment.

The IFC also said it would lend $200 million to Egyptian Fertilizer Co, a subsidiary of OCI, which is Egypt's biggest listed company.

"[The] loan and equity investment package ... will support Egypt's Orascom Construction Industries and help stimulate foreign direct investment in Egypt, while creating jobs and supporting inclusive growth," the IFC said in a statement.

IFC also said it will help mobilize another $200 million from other lenders, adding that the funds to the fertilizer business would help support agricultural production during a time of rising global need for food security.

OCI Chairman Nassef Sawiris said in the statement: "This support from IFC is an important signal that Egypt remains an appealing destination for foreign direct investment. It will also help us carry out our long-term objective of growing our core businesses and expanding employment opportunities."

IFC said its investment in OCI, which employs 84,000 people in 25 countries across the Middle East, North Africa and Europe, is expected to provide more than 2,500 jobs across the region.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.