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Mashreq Launches Egypt Operations

DUBAI - Dubai-based Mashreq Bank on Wednesday launched its Egyptian operations with 10 branches in Cairo and Alexandria and a capital outlay of 560 million Egyptian pounds 
($99.4 million).

Speaking at the launch, the bank’s chief executive Abdul Aziz Al Ghurair said banks played an important role in Egypt’s recent economic growth.

“The Egyptian banking sector is a key player in the growth of the country’s economy, especially in light of the remarkable GDP growth that averaged 7 per cent over the last two years,” Ghurair said.

Earlier this month, Egypt’s finance minister said growth was expected to slow to between 4 and 4.5 per cent in the current fiscal year, from 7.2 per cent a year earlier. The global financial crisis has affected Egypt’s main sources of income, with revenues from the Suez Canal and tourism declining. Foreign direct investment fell to $4 billion between July and December 2008 from $7.7 billion in the same period 
a year earlier.

Mashreq, Dubai’s largest bank by market value, said last year it plans to open 30 branches in Egypt within the next three to four years.