National Bank for Development (NBD) declared a preliminary approval to participate in the EGP 120 million short-term Islamic finance arranged by Bank Audi to finance the establishment of Deraya University by Minya Company. Sources said that both banks are studying offering the Islamic Murabaha finance in which each will offer EGP 60 million. The contract will be signed with New Minya Company next April. Deraya University's first phase will include faculties of medicine, pharmacy and engineering, while faculties of dentistry and nursing will be established in the second phase. Sources added that both banks are planning to arrange another Islamic Murabaha and Ijara finances for steel and food industries projects in the upcoming period. Bank Audi and Banque Misr, under a consortium financing, arranged and marketed a syndicated loan in value to EGP 900 million to finance the establishment of Egyptian Factory for Steel in Beni Suef, which was the first Islamic loan offered to finance projects in Egypt. Deraya University was authorized in April 2010. One of the founders of Deraya University is Sheikh Saleh Kamel who is the owner of the largest institutions in media, construction, finance, insurance, real estate and tourism in Arab countries. Thanaa Ghanem, who participated in the foundation of Arab Academy, is also one of the founders. Besides, Cairo Investment and Real Estate Development Company share with 30% in the University.
