Egypt signs loan agreement to support food and energy security

Egypt has signed a $1.5 billion loan agreement with the Jeddah-based International Islamic Trade Finance Corporation (ITFC) to support food and energy security amid the ongoing Iran conflict.

The General Authority for Supply Commodities (GASC) will receive $700 million, while the Egyptian General Petroleum Corporation will get $800 million, the cabinet said in a statement, citing planning minister Ahmed Rostom.

ITFC, a member of the Saudi Arabia-headquartered Islamic Development Bank Group, has approved $25 billion in funding for Egypt since 2008, Reuters reported, quoting its CEO, Adib Youssef Al Aama.

The funding includes $9 billion for GASC to support imports of food commodities, mostly wheat.

ITFC has provided $92 billion in financing to Organization of Islamic Cooperation member countries, according to its website.

Earlier this month, Asharq Business reported that Egypt was seeking up to $1.4 billion in financing from Gulf lenders to secure food imports.

It said a consortium comprising the UAE’s First Abu Dhabi Bank and Emirates NBD, as well as Bahrain’s Arab Banking Corporation, was likely to provide the funding, which may be finalised in the third quarter of 2026.

The closure of the Strait of Hormuz and adverse weather have driven agricultural prices to a two-year high. Fertiliser shortages and lower crop yields are adding to the woes.

Further reading:

• Egypt gains $1bn in World Bank funding for private sector
• Egypt seeks support from GCC banks for food imports
• Iran war will reshape global crop choices, UN warns