Egypt will receive an additional $300 million under a World Bank development financing package aimed at helping the country manage the economic repercussions of the war in Iran, according to Stephane Guimbert, the World Bank’s division director for Egypt, Yemen, and Djibouti.

Speaking to reporters on Saturday, Guimbert said the World Bank’s contribution to the package had been increased from $500 million to $800 million in response to heightened regional uncertainty and the broader economic shocks affecting countries across the Middle East.

The financing package, which also includes a $200 million guarantee from the United Kingdom, is intended to support private sector-led job creation, strengthen macroeconomic stability, and advance Egypt’s green transition agenda. The World Bank’s board approved the operation on Friday.

Guimbert said the decision to increase the bank’s contribution reflected concerns over the regional environment following the conflict in Iran and its potential impact on economies such as Egypt’s, particularly through trade disruptions, investment pressures, and rising uncertainty.

The financing is being provided on concessional terms that are more favorable than those available through commercial markets. It carries an interest rate of around 6%, a 30-year repayment period, and a grace period before repayments begin.

The operation forms part of a broader three-phase financing program between Egypt and the World Bank. The first phase was approved in June 2024, while the third phase is expected to launch next year.

Additional parallel financing is also expected from other international institutions, including the Asian Infrastructure Investment Bank.

Guimbert noted that private investment in Egypt has increased to around 6% of gross domestic product, up from approximately 4% previously. However, he said the figure remains significantly below levels seen in comparable emerging economies, where private investment often exceeds 20% of GDP.

He added that the World Bank continues to work with Egyptian authorities on measures to improve the investment climate and attract greater foreign direct investment.