Some of the Gulf banks retreated from contributing to the sharia-compliant syndicated loan amounting to EGP 1.07 billion arranged by Bank Audi, Banque Misr and Société Arabe Internationale de Banque (SAIB) for the businessman Ahmed Abu Hashima, owner of the Egyptian Steel Group to finance the establishment of the Egyptian Steel Factory.

This retreat came as some banks were afraid that the factory that was slated to be established in Minya will not be constructed as some people living there protested against the construction of such factory in fear of environmental pollution, forcing Abu Hashima to move his project to Beni Suef, sources said.

Sources added that Gulf banks such as the Al Watani Bank of Egypt that is owned by National Bank of Kuwait retreated from offering finance to Abu Hashima because of his partnership with Qatar as the country’s policies in the Middle East are rejected by Gulf countries.  In addition, Qatar targets to acquire a bank in Egypt in order to expand its investments in the Egyptian market, sources noted.

Amwal Al Ghad earlier reported that eight banks gave an initial approval to contribute to the syndicated loan after the loan arrangers signed the term sheet.