Egypt and Saudi Arabia signed two agreements in Cairo worth EGP 250 million to finance entrepreneurship, small enterprises and car ownership for drivers who work for ride-sharing companies, the Saudi Press Agency reported Monday.
The agreement on entrepreneurship and small enterprises, worth EGP 150 million, is between the Ministry of Investment and International Cooperation, the Saudi Fund for Development’s Grant Committee and Enmaa Company for financial leasing, according to a statement from the ministry.
The agreement to finance car ownership, worth EGP 100 million, was signed between the ministry, the committee and a subsidiary of EFG Hermes, and was attended by Uber and Careem representatives.
“This came as part of efforts to implement the investment law and its provisions related to providing equal job opportunities and supporting entrepreneurship and the small investor,” the ministry's statement read.
The financing will have a decreasing annual interest of 5 percent, said Hassan Al Attas, representative of the Saudi Fund for Development.
The funds are part of a $200 million grant from the Saudi Fund for Development to fund the equipment needed for the project, through financial leasing or sale with re-lease, Deputy Investment and International Cooperation Minister Shehab Marzban said.
The agreements are also part of startup accelerator Fk, launched by the ministry in cooperation with the Saudi Fund for Development.
Enmaa is a leasing company owned by Ayady for Investments and Development, Arab Investment Bank and the Islamic Development Bank’s Corporation for the Development of the Private Sector.