Contacts:
In Washington : Dina El Naggar (202) 473-3245
Delnaggar@worldbank.org WASHINGTON, DC, September 04, 2007 -- During fiscal year 2007 (July 2006-June 30, 2007), the World Bank Group committed US$ 2.6 billion in loans, credits, grants, and guarantees to governments and the private sector in countries across the Middle East and North Africa (MNA) region. The recipients are using these funds in more than 40 projects/programs designed to enhance the business and investment environment and to empower the poor. In middle income countries across the region, the World Bank Group focused its technical and financial assistance on promoting private sector development while enhancing women’s economic opportunities, strengthening governance and institutions and supporting the management of new infrastructure projects. In Lebanon, Iraq, West Bank and Gaza, the World Bank Group’s strategy is to address priority needs of vulnerable communities and those at risk while contributing to solid foundations for government and market institutions. "During Fiscal Year 2007, the World Bank Group provided technical and financial support to reforms in the Middle East and North Africa Region." said Daniela Gressani, World Bank Vice President for the Middle East and North Africa Region. "The pace of reforms needs to be maintained in order to achieve a broader impact across all segments of societies in the region. Removing barriers to private sector involvement and improving governance are critical to accelerate job creation and to ensure greater opportunities for the growing youth population in the MNA region", she added. All four institutions comprising the World Bank Group contributed to this effort: the International Bank for Reconstruction and Development (IBRD), which provides project financing, risk management products, and other financial services to middle income countries in the region; the International Development Association (IDA), which currently provides interest-free loans and grants to low income countries in MNA namely to Yemen and Djibouti; the International Finance Corporation (IFC), which has expanded its portfolio to include equity investments, loans, guarantees and advisory services to private-sector business; and the Bank Group’s political risk insurance agency, the Multilateral Investment Guarantee Investment Agency (MIGA) with active projects in a number of countries. The past year witnessed unprecedented regional growth, with real GDP rising at an average of 6.3%. This is the strongest showing in more than 10 years, despite the difficult conditions in Iraq, Lebanon and West Bank and Gaza . The World Bank portfolio is designed to support ongoing reforms in the financial, education and water sectors, improvements of the business climate, infrastructure management, governance and support to sustainable environmental practices. During the 2007 fiscal year, IBRD and IDA loans, credits and grants commitments totaled US$ 1.14 billion with investments in infrastructure projects reaching US$ 575 million. IFC’s annual investments in the MNA region fiscal year 2007 reached US$ 1.2 billion. To support private sector–led growth in the region, IFC pursued new investment opportunities and expanded its advisory services to improve the business-enabling environment. IFC’s investments and advisory services support job creation while demonstrating the opportunities that the private sector can provide. The IFC has increased its presence in MNA to address financing gaps in the region’s markets including companies’ access to finance and private sector involvement in infrastructure. During the past year, the IFC priorities included reducing the constraints on private sector activities in conflict-effected and frontier countries.Through the Lebanon Reconstruction Program, for example, some 3000 local companies received new loans. "IFC is showing that improvements in the region’s post conflict countries and other difficult markets can have a significant development impact. This can be done commercially and prudently, in collaboration with like-minded partners," said Michael Essex, IFC Director for the Middle East and North Africa. "The region’s future growth and its capacity to create meaningful jobs for young people depend on a sustained commitment to improving the business climate and opening sectors to private sector investment," he added. During 2006/2007, the Multilateral Investment Guarantee Agency (MIGA) provided technical assistance for three projects in the MNA region, in addition to c o-sponsoring an intra-regional investment summit. The event, held jointly with The Islamic Corporation for the Insurance of Investments and Export Credit and the Dubai International Financial Center, brought together investors and financiers from across the region. As of June 30, 2007, MIGA’s gross guarantee exposure in the region stood at US$ 285 million, 5.4 percent of the agency’s outstanding portfolio. Guarantees issued by MIGA in the region since 1993 total $0.5 billion, covering investments in the general banking, manufacturing, sanitation services, sewerage systems, oil and gas, telecommunications, and tourism sectors in 10 countries across MNA, helping to promote inward foreign direct investment. This fiscal year marked an important MIGA first in the area of Islamic financing. "During FY07, the Board approved support for our first Sharia-compliant deal, which we expect to sign sometime this Fall," said Yukiko Omura, Executive Vice President of MIGA. "With the region seeking to raise business standards and increase technical know-how through inward investment we hope this is just the first of many such transactions." ###
For more information on the World Bank’s work in the MENA region, please visit
www.worldbank.org/mna |
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