The National Bank of Egypt (NBE) has signed a financing contract worth EGP 793.9m for the Nile Wood Company, a subsidiary of the Egyptian Kuwaiti Holding Company.
The agreement was made as part of the Central Bank of Egypt’s (CBE) initiative to support clients in industrial, agricultural, and contracting activities.
NBE Deputy Chairperson Yehia Aboul Fotouh said the financing reflects the state’s encouragement and interest in major projects that maximise diversity in GDP sources and maintain stable growth rates.
This is particularly in the industrial and agricultural sectors, as two of the most important pillars of development in Egypt. These two sectors also provide many job opportunities and allow for the manufacture of local products to offset imports.
Moataz Al-Alfi explained that the agreement will allow the Nile Wood Company to finance the investment costs needed to establish and operate a factory for wood industries and manufacture of MDF wood panels.
The EGP 1.3698bn project will be constructed on an area of 150,000 sqm in the developers’ area of Sadat City, and is expected to have a production capacity of 180,000 cubic metre annually.
Sherif Al-Zayat said that the project is distinguished as integrated agricultural industry, as the main material in which the factory deals is wood forests. It has received a total of 7,000 feddan from the New Urban Communities Authority (NUCA) which are currently under cultivation. It is also expected to receive a further 6,000 feddan before the end of the year, so that the total area for agriculture will stand at 13,000 feddan.