The Industrial Development Bank (IDB) has taken part in two significant Sukuk issuances during the first half of 2025, with a total contribution of EGP 500m, further expanding its presence in the Islamic finance market. The first issuance was a Mudaraba Sukuk worth EGP 3bn, issued by Aman for SME Financing. The proceeds will be directed toward expanding the company's portfolio of productive project financing, in line with national goals to promote financial inclusion and job creation through support for small and medium-sized enterprises. The second issuance involved a Musharaka Sukuk valued at EGP 2.8bn for the "Bab Misr" project, an infrastructure development led by a subsidiary of Hassan Allam Group. The project will fund the construction of the Upper Egypt Train Terminal, a major transport hub aimed at improving logistics, boosting regional development, and upgrading the country's transportation infrastructure. IDB's participation in this project reflects its commitment to supporting initiatives that deliver strong economic and developmental impact, especially through public-private partnerships. Mennat Allah Awadallah, Deputy CEO and Managing Director of IDB, described the bank's debut in the Sukuk market as a strategic milestone. "We are proud to mark our first entry into the Sukuk market through two prominent issuances alongside several leading banks. Our EGP 500m participation marks the beginning of our presence in this promising market," she said. "This aligns with our broader strategy to support both conventional and innovative financing models that contribute to economic growth, empower productive sectors, and create more job opportunities—especially in vital areas of the economy." Awadallah emphasized that the bank's move into Sukuk is part of its long-term commitment to developing Islamic finance in Egypt and to providing alternative investment channels tailored to market needs. She noted that IDB aims to serve as a conduit between capital and real economic activity, driving sustainable and inclusive development. As of the end of April 2025, IDB's innovative finance portfolio, which includes Sukuk and securitization, had grown to EGP 1.5bn—a six-fold increase from its 2023 level. This rapid growth underscores the bank's strategic pivot toward diversified financial instruments and its evolving role in Egypt's capital markets.
