Coffee With: Abdallah Al Dardari (LinkedIn), assistant secretary-general, assistant administrator, and director of the Regional Bureau for Arab States (RBAS) at the United Nations Development Programme (UNDP). Al Dardari touched down in Egypt at the end of June for a brief trip that saw him attend the first iteration of the EU-Egypt Investment Conference. Enterprise sat down with Al Dardari during his visit to discuss the UNDP’s work in Egypt, the innovative financing mechanisms that they’re leveraging to attract private investment into local sustainable development and climate action projects, the impact of the wars in Gaza and Sudan on the Egyptian economy, and more. Below are edited excerpts from our conversation:

Enterprise: Can you tell us about the UNDP's role in Egypt's development?

Abdallah Al Dardari: UNDP has been in Egypt for decades and has always been a partner to the people and government of Egypt in human sustainable development.

Our work in the country is centered on three main focus areas. First, the environment. We are very active in the area of climate change mitigation and adaptation as well as renewable energy. We are expanding into the area of climate finance, hopefully in the next few weeks and months, so that we can provide blended finance to adaptation and mitigation projects here.

The second area is information technology and communication. We are working with the CIT Ministry to enhance digital public infrastructure (DPI) and boost the competitiveness of digital SMEs. We are very proud to partner with Egypt on bringing offshore investments in the field of call centers and other areas that could create jobs for young Egyptians and for startups in the digital space. Our support includes revolving funds, credit guarantees, and de-risking initiatives designed to help SMEs get off the ground.

The third area is social inclusion and building resilient communities. We work on local area development and social protection schemes to create a more inclusive economy that benefits all Egyptians because our slogan is “leave no one behind.” Our purpose in the next few months and years is to have stronger linkages between those sectors so that the impact would be higher for job creation and livelihood here in Egypt.

E: What financing mechanisms is the UNDP utilizing through 2030?

AD: The region faces a climate finance gap of about USD 1 tn until 2060. That's a huge gap, but it’s also a significant investment opportunity, much of which lies within Egypt. To bridge this gap, the UNDP is transitioning to a new model of blended finance. We’re combining grant funding with emerging financial tools — like credit guarantees, insurance, risk management, soft revolving funds, and public private partnerships — to mobilize large investments for Egypt’s climate priorities. By offering these tools, we can attract private sector investment into projects that investors might otherwise find too risky. The UNDP is becoming the blended finance institution of the United Nations. We don't believe we should introduce more loans to Egypt; we aim to attract investments.

We have a vast array of donors in Egypt. We work closely with Japan, the EU, individual European countries, USAID, and the private sector. We are currently working with all of the mobile operators in the Arab world for an initiative for global digital public infrastructure in Egypt and across the region. We are going to hold a global summit on digital public infrastructure in Cairo in the first week of October, bringing all these private sector investors to the country. We are also planning an AI summit here for December. This is how we operate — by bringing together donors, the private sector, and corporate social initiatives (CSI) in order to support development here in Egypt.

E: Are there any specific projects you're particularly proud of?

AD: Of course. We played a key role in initiating the solar power project at the Grand Egyptian Museum. We have almost 1 MW of solar energy in place now, but the idea is to completely solarize the full 10 MW of energy that the museum needs. I insist that you visit the museum and see the panels; it’s a truly aesthetic design.

We've also helped install solar panels at airports, hotels, and other tourist areas across Egypt, including the Cairo Airport and Sharm Airport. We would like to expand our work to hospitals, schools, universities, and other public institutions to enhance the efficiency of the energy sector in Egypt.

We are also really proud of our support in creating the applied innovative centers (AICs). We provided technical support to the government in setting up these nationwide hubs, which provide young Egyptian entrepreneurs and startups with the training and support they need to start their digital projects.

E: Let's talk about the Egypt-EU investment conference that you attended.

AD: The conference affirmed that Europe still believes Egypt is instrumental to the stability of the region, sending a signal of confidence to investors that regardless of the turbulent times we're in, they can come and invest in Egypt. I think the EUR 5 bn facility agreement that the EU signed with Egypt is a very strong signal of support from the EU to Egypt at this juncture. ٍSome of the biggest companies in the world announced significant investment plans, including companies in key sectors for Egypt like technology, automotive, and pharma.

E: You are working to encourage private sector involvement in the economy, what are the challenges facing private sector participation?

AD: A significant obstacle at this juncture is elevated interest rates. We need to go into a lower interest rate environment to incentivize investors to take part in the real economy.

Moreover, a clear delineation of roles of the public and private sectors is essential. If we manage to clarify the roles of the state, public enterprises, and private enterprises, ensuring that they can compete on equal footing and can be treated by courts and by banks as equals, you will see a dramatic improvement in investments.

Policy stability is also a key. The worst thing you can do to a private investor is to change your policy, tax codes, and regulations every day. Even if the change is for the better.

I also must say that even though Egypt has so far managed to stay secluded from the most negative impacts of what's happening around it — in Gaza, Sudan, and the Red Sea — the regional political and security climate is not conducive for taking risks. The investment climate has been affected in the whole region, not just in Egypt, and in private investment, it's all about risk.

E: Now on to the wars in Sudan and Gaza. How do you see the spillover effects on the Egyptian economy?

AD: The investment climate has been affected in the whole region, not just in Egypt. If I were an investor planning to invest USD 1 bn in the Middle East, I would think several times before doing so. So yes, there has been an impact. And that's why I think the timing of the EU-Egypt conference was a very strong signal of confidence.

The recent influx of Sudanese refugees exceeds previous waves and requires substantial support. We are planning a project to enhance the resilience of the host communities across the country where Sudanese refugees live. We plan to invest very soon in key areas like solid waste management, health centers, schools, and solarization to boost resilience.

It’s important to note that migrants contribute to the Egyptian economy. We tend to forget that Egypt has hosted mns of people throughout history. The growth of the global economy requires migrants. They come with skills and savings, and they invest those assets in the country. Sudan and Egypt have historically been very close, and there have always been a large number of Sudanese in Egypt, investing, buying homes, and so on.

E: You said that Egypt is able to weather the economic impact of a continued war in Gaza. What do you think gives it that resilience?

AD: Compared to other parts of the world that I've worked in, Egypt is a strong institutional state. It has a seven thousand year history of adapting to shocks. Sometimes we economists forget what the country is capable of and the significance of the adversities that it has withstood. It has a vast population of people who are some of the world’s most productive workers when they put their minds to it, coupled with a geographically strategic location and robust institutions capable of tackling challenges.