Late last year, The Khalifa Fund for Enterprise Development announced plans to extend a $200 million loan to Egypt which was proposed to help their economy overcome their troublesome financial decline. That proposal has transitioned into reality as the loan has been activated for the government in Egypt to use. The loan activation stems just mere weeks after Egypt hosted a conference titled Egypt The Future which invited investors from outside nations to seek financial benefits of funding various aspects of Egypt’s economy.
Chairman of Khalifa Fund for Enterprise Development, Hussain Al Nowais, says the loan for Egypt is a representation of the United Arab Emirates keenness of leadership and how deepening the relationship with Egypt can be beneficial for both countries. The loan will be a part of microfinance programs that will be responsible for creating 100,000 projects, job opportunities that could reach up to 200,000 and enhance workforce skills by the year 2020.
While the funds of the loan trickle through Egypt’s economy, Egyptian citizens may see a better quality of life as a domino-effect of positivity sweeps through the nation. With over 60% of the population living below the poverty line due to high unemployment, the economic climate of Egypt may be on the upswing during the next few years of financial stimulus. With additional investments coming from different firms, Egypt’s economy may make a turn for the better and some loans are featuring attractive repayment plans that can lessen economic hardship in the near future with grace periods.
Hussain Al Nowais also stated that the loan will be directed towards remote and disadvantaged areas trough Egypt to improve those pockets of poverty. It will also assist women in rural areas looking for work and will give them resources to emerge as executives in the workplace.