"Al-Mashat": The progress witnessed by the Arab Investment Bank in recent years is a successful model of partnership with the private sector and maximizing the utilization of state-owned assets"

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, attended the launch event for the new brand identity of the Arab Investment Bank (aiBANK), which has now become Bank NXT. The Arab Investment Bank is one of the assets that the state has sought to enhance by involving the private sector, notably through the entry of EFG-Hermes Financial Group, alongside the Sovereign Fund of Egypt and the National Investment Bank.

The event was attended by Engineer Tarek Kabil, Chairman of the Board of Bank NXT; Tamer Seif, CEO and Managing Director of Bank NXT; Karim Awad, CEO of EFG-Hermes Holding Group; and Ashraf Negm, Vice President of the National Investment Bank.

In her speech, H.e. Minister Al-Mashat commended the significant progress achieved by the Egyptian banking sector over the past two decades, noting that it began its reform journey in 2005. The Minister emphasized that she had been one of the contributors to launching the banking reform program through the development and modernization of monetary policy strategies and the shift towards inflation targeting.

H.E. Dr. Al-Mashat continued, stating that the government is implementing the State Ownership Policy Document and organizing state ownership in its companies. This led to the decision to attract private sector participation in the Arab Investment Bank (aiBANK) in 2021. The developments we observe today in the bank's journey reflect the effectiveness of government investments through the contributions of the National Investment Bank and the Sovereign Fund of Egypt. This aligns with the vision to facilitate the role of the private sector and maximize the benefits of state-owned assets, ultimately contributing to higher economic growth rates. She expressed gratitude to Dr. Hala Al-Said, Economic Advisor to the President and former Minister of Planning, for her previous efforts during her tenure at the Sovereign Fund of Egypt.

H.E. Dr. Al-Mashat stated that, in light of the developments within the Egyptian economy and the commencement of the new government's work program, providing additional opportunities for private sector participation in development efforts has become a primary and indispensable goal, as it serves as a key driver of economic growth and a catalyst for development, aiming to build a competitive economy that attracts investments. She underscored that the successful implementation of the government's strategic investments is essential, as investment is a bet on the future.

In the context of the government's program, the Ministry of Planning, Economic Development, and International Cooperation aims to promote efforts to encourage local and foreign investments through the governance of state investment spending, in collaboration with various stakeholders, to increase private sector investments. Additionally, the ministry supports and reinforces structural reforms in partnership with international development partners, while providing investments, accessible financing, and technical assistance to private sector companies through development partners, via the Hub for Advisory, Finance & Investment for Enterprises, which acts as an effective link between international institutions and Egyptian private sector companies.

The minister affirmed that over the past four years, the Egyptian private sector has secured accessible financing, investments, and credit lines from banks amounting to approximately $11 billion, which have supported its expansion both locally and regionally, enabling banks to expand in the MSMEs sector.

H.E. Dr. Al-Mashat elaborated that the ministry recently launched a series of meetings with the private sector to enhance its contribution to economic development, showcasing investment opportunities in priority sectors in Egypt, and fostering integration between state investment plans and the programs implemented by development partners by encouraging partnerships between the public and private sectors and enhancing blended financing, development financing, and grants, as well as identifying opportunities in investment guarantees and corporate social responsibility.

H.E. Minister Al-Mashat added that the Ministry of Planning, Economic Development, and International Cooperation is committed to advancing sustainable economic growth efforts by implementing structural reforms to enhance competitiveness and improve the business environment. The ministry relies on evidence-based policies and data to identify and bridge development gaps, bolster macroeconomic stability, support the resilience of overall fiscal policies, transition towards a green economy, and mobilize local and foreign financing to achieve sustainable development through an integrated national financing framework that enhances resource allocation to priority sectors, stimulates private sector investments, and accelerates progress towards achieving sustainable development goals, all within the framework of the government's program.

In conclusion, H.E. Dr. Al-Mashat emphasized the ministry's commitment to providing full support to the private sector and enhancing the role of the Sovereign Fund of Egypt for investment and development in maximizing returns on state assets, facilitating local and foreign private sector investments, and continuing efforts to restructure the National Investment Bank to strengthen its role as one of the economic and investment arms supporting the state’s development efforts and implementing the economic and social development plan in support of Egypt's Vision 2030.