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The Arab Fund for Economic and Social Development has signed its first private-sector financing deal in Egypt—a $50 million agreement with the National Bank of Egypt (NBE) to support micro, small, and medium-sized enterprises (MSMEs).

Established in 1968 and based in Kuwait, the Arab Fund is a regional financial institution that provides funding for infrastructure, health, education, and other key development areas in Arab countries.

The agreement, signed Sunday, is part of a wider $400 million financing package arranged by the European Bank for Reconstruction and Development (EBRD), and marks a strategic pivot by the Arab Fund, which has traditionally funded large-scale public infrastructure projects across the region.

Alongside the credit facility, the Arab Fund also announced a formal partnership with EBRD to launch new business development programs aimed at strengthening Egypt’s entrepreneurial ecosystem. These include targeted advisory services, workshops, and training sessions to help MSMEs—particularly those led by women and youth—improve their competitiveness and resilience.

“MSMEs are the backbone of Egypt’s economy, vital for job creation and youth integration,” said Bader Alsaad, Director General of the Arab Fund. “This collaboration aligns with our new strategy to maximize development impact through innovation and inclusive growth.”

The funding will be disbursed through NBE’s national network of nearly 700 branches, reaching entrepreneurs and small businesses in both urban and underserved rural areas. With over 22 million clients, NBE is Egypt’s largest provider of MSME finance.

“This partnership lays the groundwork for future collaboration with the Arab Fund,” said NBE CEO Mohamed El-Etreby. “It enhances our ability to expand sustainable finance and directly support Egypt’s national development goals.”

Egypt is currently the largest recipient of Arab Fund investments, with over $5 billion committed to infrastructure and development projects to date.

Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat described the initiative as a step forward in mobilizing development finance for private-sector growth. She noted that Egypt has secured more than $15.6 billion in concessional finance for private enterprises since 2020.