Contacts:
In Washington: Dina Elnaggar
Delnaggar@worldbank.org
Tel: 202 4733245 WASHINGTON, October 7,2008 -  During fiscal year 2008, the World Bank Group enhanced its support to MENA’s growth and development priorities: the International Bank for Reconstruction and Development (IBRD), provides project financing, risk management products, and other financial services to middle income countries in the region; the International Development Association (IDA), provides interest-free loans and grants to the two low income countries in MNA (Yemen and Djibouti); the International Finance Corporation (IFC), expanded its portfolio in MNA 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), has active projects in a number of countries. "This year was difficult for many of our countries as they continue their efforts to mitigate the impact of the global increase in food and energy prices." said Daniela Gressani, World Bank Vice President for the Middle East and North Africa Region. "As these global challenges continue to manifest their impact particularly on vulnerable groups, our assistance will remain focused on improving governance and programs to the vulnerable while removing barriers to private sector involvement. In addition we will continue our dialogue with other development partners to ensure that our response to these global challenges is effectively targeting critical needs," she added. In conflict-affected communities, the World Bank Group’s strategy is to reconstruct critical infrastructure and institutions for economic and social development and as well as to finance service provision to underserved communities. In IDA countries, the World Bank Group aims at strengthening institutional capacity while supporting governments to address priority gaps in health, education and social protection sectors. In middle income countries across the region, the World Bank Group focused its technical and financial assistance on: (a) supporting the pace of economic reforms and improving social safety programs targeting poor communities, (b) promoting private sector development, (c) enhancing regional integration into the global economy, (d) strengthening governance and institutions, and (e) supporting the management of new infrastructure projects. "While many challenges remain to be addressed in the region, MENA experienced another year of regional economic growth, with real GDP rising at an average of 6.1% over the past 5 years " said Nadir Mohammed, Director of Operations in the Middle East and North Africa Region. "During 2008, our partnerships across MENA enabled us to better address a diverse set of challenges to improve the inclusion of youth and other vulnerable groups, accelerate job creation and sustainable growth as well as enhance regional participation in global trade and productivity networks, " he added. During fiscal year 2008, ending June 30, the World Bank committed US$1.77 billion in loans and grants to countries across the Middle East and North Africa (MENA) region. The recipients are using these funds in more than 29 projects designed to build the climate for investment and empower the poor while mitigating the risks associated with global challenges. IBRD commitments in FY08 totaled US$1.2 billion with a breakdown of lending as follows: US$ 506 million in the private sector, US$ 100 million in governance, US$ 325 million energy, US$ 100 million in urban development, US$ 120 million in water and US$ 11.5 million in education and social protection projects. During the same fiscal year, IDA commitments totalled US$53 million with US$ 50 million going to Yemen to stimulate non-oil growth, improve human development outcomes, improve fiscal sustainability, and address the sustainability challenges of using natural resources. Djibouti and Yemen received emergency grants totaling US$15 million from the Global Trust Fund that was set up in response to the food crisis. West Bank and Gaza received five grants totaling US$ 183 million. In support of private sector–led growth in the region, the IFC continues to pursue new investment opportunities and expand advisory services to improve the business-enabling environment. IFC’s investments in MENA increased to US$1.4 billion, covering 50 projects in 12 countries during fiscal year 2008. In advisory services, IFC’s total expenditure reached US$22 million, up substantially from US$5.7 million three years ago. With guarantees totaling US$430.7 million, MIGA’s gross exposure in the region rose significantly to 11 percent this year, in keeping with the World Bank Group’s strategy for greater involvement in Middle East and North Africa. During fiscal 2008, IFC focused on mobilizing private investment in infrastructure, providing access to finance for the underserved, supporting the development of smaller businesses, and assisting private sector development in less developed and conflict-affected countries. During 2008, IFC’s activities in the region have generated tangible development results: extending loans to smaller businesses, generating 63,360 new jobs and doubling the number of customers reached by power generation to 20 million in addition to nearly 550,000 patients benefitting from more investments in the health sector. Another key priority for IFC in the region is facilitating cross-border investments, mainly by banks and private institutions from GCC member countries into less developed countries. Cross-border investments represented 32 percent of IFC investments during fiscal 2008. IFC also used its financial strength and global expertise to bring investment and advisory solutions where they are needed most including Afghanistan, Lebanon, Iraq, Pakistan, and the West Bank and Gaza. "IFC has a track record of working in difficult markets and we have teams on the ground that have proven able to respond to our clients’ shifting priorities and increasing challenges. The success of our investments in the region boosts the attractiveness of these markets. This in return contributes to the broader goal of spurring economic growth." said Michael Essex, IFC Director for the Middle East and North Africa. With guarantees totaling US$430.7 million, MIGA’s gross exposure in the region rose significantly to 11 percent this year, in keeping with the World Bank Group’s strategy for greater involvement in Middle East and North Africa. This year,a project in Djibouti gave MIGA the opportunity to adapt its traditional business tools to provide a guarantee in support of Shariah-compliant project financing.  "Increased liquidity in Islamic financial markets is leading to growing demand for guarantees that can support Shariah-compliant deals," said James Bond, Acting Executive Vice President of MIGA. "We are very pleased to support this deal, which we hope is just the first of many such transactions." MIGA is helping the World Bank Group support the MENA region’s advancement by facilitating investments that can help countries overcome their over-reliance on oil income, while creating jobs and supporting the private sector as they make investments inside and outside the region. Since 1988, MIGA has issued nearly US$1 billion in guarantees in the Middle East and North Africa region, as well as some US$881 million in guarantees to MENA-based companies and banks investing in developing countries outside the region. Guarantees issued by the agency have covered investments in the general banking, manufacturing, sanitation services, sewerage systems, oil and gas, telecommunications, and tourism sectors in more than 10 countries across the region, helping to promote inward foreign direct investment. For more information on the World Bank Group in MENA, please visit:
www.worldbank.org/mena
www.ifc.org
www.miga.org |
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