Press Release

OPEC Fund invests in the Egyptian housing sector

83/2005 August 10, 2005, Vienna, Austria
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The OPEC Fund for International Development today signed an agreement with the DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH for the purchase of 20% equity in the Egyptian Housing Finance Company (EHFC), a specialized agency founded in December, 2004, to address the scarcity of long term financing for homeowners in Egypt.

The investment is being made within the context of the Fund’s Private Sector Facility, its dedicated account for channeling support directly to private enterprise in developing countries.

EHFC is the first privately owned specialized housing finance company in Egypt, where there is significant potential for increased home ownership. By providing long term loans for housing investments, EHFC is expected to make property ownership more accessible to large numbers of Egyptians, especially those in the middle-income bracket.

Initially, EHFC will offer individual home loan products for the purchase or construction of independent housing units or flats. Over time, a range of other types of real estate financing will be introduced. This will help develop a more efficient and innovative housing finance industry in Egypt.

The share purchase in EHFC represents the Fund’s fourth private sector investment in Egypt, although the country has benefited from substantial support to the public sector over the years, including loans for projects in the agriculture, education, energy, health and national development banks sectors.

In March, 2001, an agreement for the encouragement and protection of investment was signed between the Fund and the government of Egypt.

Today’s agreement was signed on behalf of DEG by Ms. Manuela Marques, Vice President, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.