Cairo, Egypt, August 4, 2014—IFC,
a member of the World Bank Group, and the European Bank for Reconstruction
and Development (EBRD), are providing loans of $60 million each for a benchmark
urban development project in West Cairo that is expected to create more
than 2,400 new jobs. The loans will be complemented by a $20 million loan
from the Commercial International Bank (CIB), a local Egyptian bank.
The funds will be used for the completion of the Mall of Arabia shopping
center, one of Egypt’s largest retail complexes, in 6th of
October City, a strategic new urban community developed to ease overcrowding
in Cairo. The first phase of the project opened in 2011. The second phase,
due to open in September 2015, will expand the center’s total leasable
area by 58 percent, taking it to 174,000 square meters, and adding more
than 200 new retail brands.
The project’s completion is expected to push the total number of direct
and indirect jobs created by the center to 6,300, from the current figure
of 3,880. The majority of jobs will be earmarked for young people, helping
to address the high level of youth unemployment in Egypt. More than 1,200
temporary jobs are also expected to be created during the construction
The Mall of Arabia is owned by Egyptian Centers for Real Estate Development,
which is owned equally by three brothers from the Al-Hokair family in the
Kingdom of Saudi Arabia. The three also own Saudi FAS Holding, a leading
Saudi Arabian group focusing mainly on the retail and real estate sectors.
Muhanad Awad, CEO of the investment and financial arm of Fawaz Alhoakir
group, said: “This is our first mall outside Saudi Arabia and, as such,
a very significant project for us. We believe that Egypt has great potential
and we are happy to be working with IFC, EBRD and CIB to help develop and
modernize the retail sector there.”
“IFC is committed to helping Egypt achieve sustainable growth and expand
job opportunities through the development of the private sector. This project
will not only create jobs, in particular, for the young people who need
them most, but will also help improve demand for local goods and services,
and boost the urban development and retail infrastructure of the area,”
Nada Shousha, IFC Country Manager, Egypt, Libya and Yemen, said.
Claudia Pendred, Director for Property and Tourism at the EBRD said: “This
project is important for Egypt. It will provide much needed training and
employment opportunities especially for women and youth. It will also strengthen
market standards in Egypt.”
IFC’s strategy in Egypt focuses on increasing opportunities for employment
generation through private sector development and fostering more broad-based
and inclusive growth. Between FY11-14, IFC invested a total of over $1
billion in 15 projects in Egypt.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org