World Bank Approves $360 Million Loan for Egypt

 The World Bank’s first project in the Middle East focuses on promoting the Egyptian women’s role. (Reuters)
The World Bank’s first project in the Middle East focuses on promoting the Egyptian women’s role. (Reuters)
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World Bank Approves $360 Million Loan for Egypt

 The World Bank’s first project in the Middle East focuses on promoting the Egyptian women’s role. (Reuters)
The World Bank’s first project in the Middle East focuses on promoting the Egyptian women’s role. (Reuters)

The World Bank has approved a $360 million development policy financing (DPF) loan to support Egypt’s post-pandemic recovery, Minister of International Cooperation Rania al-Mashat said on Thursday.

"To further support achievement of the operation's development objectives, the Asian Infrastructure Investment Bank is considering parallel financing for the operation of the same amount using the same package of policy reforms agreed with the World Bank," the World Bank said in a statement.

World Bank Governor for Egypt said the program strategically addresses some of the long-term structural issues affecting growth by focusing on three basic pillars: enhancing macro-fiscal sustainability, enabling private sector development and fostering women’s economic inclusion.

The first pillar supports improving the management of state-owned enterprises by enhancing transparency and reporting and promoting and empowering a greener and more sustainable economic recovery through the issuance of green bonds.

The second pillar builds on the first wave of reforms and supports digital and financial inclusion, the streamlining and automation of trade facilitation, and a modernization of bankruptcy processes that aim to improve Egypt’s competitiveness and private sector job creation. It also strengthens the regulatory framework for private sector participation in waste management, which provides a basis for greener and more inclusive development in the sector.

While the third pillar focuses on legislative and regulatory reforms that promote female participation in the labor force and supports government efforts to address gender-based violence. It includes steps to remove restrictions on women participation in sectors and limitations on working hours and supports the government adoption of a national code of conduct that promotes safe and decent transportation for women in railways.

“Structural reform policies are integral to Egypt’s efforts to accomplish a sustainable and resilient economic recovery that enables the economy to weather future shocks,” Mashat stressed.

“This operation will support our efforts to maintain the reform momentum and achieve the milestones necessary for inclusive growth,” she added.



Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
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Saudi PIF Invests $200 Million in ETF Bond Fund

The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)
The fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). (Asharq Al-Awsat)

State Street Global Advisors, a subsidiary of State Street Corporation, announced that Saudi Arabia’s Public Investment Fund (PIF) has invested SAR 750 million ($200 million) in the newly launched SPDR J.P. Morgan Saudi Aggregate Bond ETF.

According to a statement released by the company on Wednesday, this fund is the first of its kind in Saudi Arabia to focus on fixed-income exchange-traded funds (ETFs). It is listed in both the London Stock Exchange and Germany’s Xetra, offering investors the opportunity to track government and quasi-government bonds denominated in either the Saudi Riyal or the US Dollar, including sukuk (Islamic bonds).

This investment aligns with the objectives of Saudi Vision 2030, representing a significant step toward enhancing the international presence of Saudi Arabia’s financial markets and attracting foreign investments. The fund is available to investors across several European countries, including Austria, Denmark, France, Germany, and Italy.

Commenting on the investment, Yazid Al-Humaid, Deputy Governor and Head of MENA Investments at PIF, said: “The fund continues to create opportunities and enable access to diverse capital markets in the Kingdom. Investing in the first internationally listed Saudi fixed-income ETF underscores PIF’s commitment to deepening Saudi capital markets, attracting investors, and fostering partnerships across global financial centers.”

CEO of State Street Global Advisors Yi-Hsin Hung emphasized that the launch of the fund is a significant milestone in providing innovative opportunities for investors while contributing to Saudi Arabia’s economic growth.