Cairo, Egypt, December 1, 2015
IFC, a member of the World Bank Group, and Al Baraka Bank, are joining forces to expand the availability of trade finance for Egyptian importers to help spur economic growth and create jobs.
Under this agreement, Al Baraka Bank becomes the third Egyptian bank, and the first Islamic bank in the country, to join IFC's Global Trade Finance Program (GTFP). IFC guarantees will help Al Baraka Bank clients import commodities that are critical to the local market, including raw materials, pharmaceuticals, fertilizers and spare parts that will support different manufacturing sectors.
"With support from IFC, we will be able to strengthen our clients' operations and help them enter new international markets," said Ashraf El-Ghamrawy, CEO and Vice Chairman of Al Baraka Bank Egypt.
Importing is important for businesses and individual consumers. It provides access to important resources and products that are not available locally. According to official figures, Egypt spends up to $60 billion on imports. In fiscal 2015, IFC's GTFP committed over $1 billion in the Middle East and North Africa region and over $6 billion around the world.
"Boosting cross-border trade is vital for Egypt's economy and a priority for IFC," said Nada Shousha, IFC Country Manager for Egypt, Libya, and Yemen. "Expanding trade financing, which is particularly beneficial for smaller enterprises, can also help spur economic growth and create jobs, in Egypt and the wider region."
Since its inception in 2005, IFC's Global Trade Finance Program has issued more than 21,000 guarantees totaling $36 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. The program includes more than 280 partner banks in over 95 countries.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it's needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About Al Baraka Bank Egypt
Al Baraka Bank Egypt is considered as one of the leading Islamic banks in the Egyptian market. It provides a variety of services and products which suit to different requirements and financing programs to meet the requirements of various sectors of the Egyptian market. The bank currently has 29 branches and 4 foreign exchange offices, spread across the major Egyptian cities. Al Baraka Egypt represents the investment arm in Egypt of Al Baraka Banking Group (ABG), Bahrain the Group is considered among the pioneers in the Islamic banking business at the level of the world. The authorized capital of the Group amounts to $1.5 billion, and the total Shareholders' equity amounts to approximately $2 billion. The Group has more than 500 branches (and three representative offices) in fifteen countries.
© Press Release 2015