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RIYADH: Egypt and the EU have signed a €4 billion ($4.63 billion) agreement to launch the second phase of the Macro-Financial Assistance and Budget Support Mechanism, aimed at strengthening the country’s macroeconomic resilience. 

The agreement was signed during the Egyptian-European Summit in Brussels and witnessed by President Abdel Fattah El-Sisi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa. 

On the Egyptian side, the MoU was signed by Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, alongside Valdis Dombrovskis, European Commissioner for Economy and Productivity. 

Al-Mashat said the MFA is part of a broader partnership between Egypt and the EU, focusing on trade and investment ties to support fiscal stability and economic growth. 

The agreement comes as Egypt recorded a historic high of $8.5 billion in dollar resources in July, reflecting improved economic indicators, including rising remittances from abroad. 

Fitch Ratings affirmed Egypt’s long-term foreign-currency issuer default rating at “B” with a stable outlook in April, citing the country’s large economy, potential gross domestic product growth, and support from bilateral and multilateral partners. 

In an official post on the Egyptian Prime Minister’s Facebook page, the statement said: “She (Al-Mashat) noted that the second phase, worth €4 billion, came after ongoing coordination between various national authorities and the European Commission throughout the year to review the proposed structural reform matrix, which includes 87 reforms within the National Structural Reform Program.” 

It added: “She emphasized that these reforms aim to enhance macroeconomic stability and resilience, improve competitiveness and the business environment, and promote green transformation, including protecting the Red Sea ecosystem.” 

Al-Mashat added that the partnership supports Egypt’s ongoing economic reform efforts and enhance economic resilience in the face of external fluctuations. She also highlighted that financing helps the government extend debt maturities, enhance sustainability, and bridge funding gaps. 

The partnership underscores Egypt’s commitment to economic diversification and strategic international collaboration, as the government continues implementing reforms to stabilize public finances and attract investment. 

The North African country’s economy has shown resilience despite global headwinds, with foreign investment and policy reforms helping offset volatile markets, Standard Chartered said in its August outlook. 

RIYADH: Lending to small, medium, and micro enterprises in �������� reached a record SR420.7 billion ($112.18 billion) by the end of the second quarter of 2025, up 37 percent from the same period last year, official data showed.

This represents an increase of more than SR113.3 billion compared with the second quarter of 2024, when SME facilities stood at SR307.4 billion, the Saudi Press Agency reported, citing data from the Saudi Central Bank, also known as SAMA.

On a quarterly basis, SAMA’s monthly statistical bulletin for August reported that lending increased 10 percent from SR383.2 billion at the end of the first quarter, adding SR37.5 billion in new credit.

It also aligns with Vision 2030’s target to increase SME contributions to gross domestic product from 30 percent to 35 percent. With more than 1.8 million SMEs operating in the Kingdom, supporting this sector financially is not just a policy goal but a macroeconomic necessity.

“The bulletin indicated that the facilities provided by the banking sector amounted to SR402.1 billion, constituting about 96 percent of the total facilities, while the facilities provided by the financing companies sector amounted to SR18.6 billion,” the SPA report stated. 

Medium-sized enterprises received the largest share of bank lending, securing SR198.9 billion, about 49 percent of total banking facilities. Small enterprises, meanwhile, dominated the financing companies’ portfolio, with SR8.5 billion, representing 46 percent of that sector’s total.

Overall, medium enterprises led total SME facilities with SR206.4 billion, representing 49 percent, followed by small enterprises at SR154.2 billion, or 37 percent, and micro enterprises at SR60.1 billion, accounting for 14 percent.

According to the General Authority for Small and Medium Enterprises, medium enterprises are defined as those with revenues between SR40 million and SR200 million or 50–249 employees.

Small enterprises have revenues of SR3 million to SR40 million, or six to 49 employees, while micro enterprises generate less than SR3 million or employ one to five people.