The document discusses the European Investment Bank's (EIB) support for innovation in the Middle East and North Africa (MENA) region. It notes that the EIB has provided over €14.2 billion in funding since 2002 for projects in infrastructure, SME credit lines, equity, risk capital, and microfinance. It also supports innovation through loans for technology parks and education infrastructure in countries like Tunisia, Morocco, and Jordan. The EIB provides funding for innovative SMEs through various investment funds. It is exploring new areas like partnerships with the European Space Agency and maturation funds to support technology transfer projects across a large region.

1. EIB support to innovation in the MENA
region
Joyce Liyan
Head of Neighbourhood Business Development Unit
Directorate for operations outside the EU
Cambridge, 20 June 2013

2. 1. The European Investment Bank: The EU Bank
2. Role of international institutions in promoting linkages
3. Supporting innovation in the MENA region
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The European Investment Bank (EIB),
The EU Bank
European Union’s long-term lending bank set up in 1958 by the
Treaty of Rome.
Shareholders: 27 EU Member States
Governance
Board of Governors – EU Finance Ministers
Board of Directors - Member States & European Commission
Management Committee –EIB’s executive body
Audit Committee – independent, non-resident

4. 4
Long-term finance promoting
European objectives
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We operate through FEMIP « Facility for Euro-Mediterranean
Investment and Partnership », which brings together the whole range
of EIB instruments in North Africa and the Middle East.
Our objective is to support the modernisation and opening up of
region’s economies.
Over EUR 14.2bn invested since 2002 through:
 Direct lending to infrastructure projects: transport, energy, water, telecom, health...
 Credit lines to SMEs provided through local banks
 Equity and risk-capital
 Microfinance
 Technical assistance
The EIB in North Africa and the Middle East : investment,
partnership and technical assistance

6. 1. The European Investment Bank: The EU Bank
2. Role of international institutions in promoting linkages
3. Supporting innovation in the MENA region
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7. 7
EIB Knowledge Economy Lending 2000-2012
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2.2 bn
5.1 bn
3.6 bn
6.2 bn
7.1 bn
10.7 bn
10.9 bn
10.2 bn
12.5 bn
18.3 bn
16.5 bn
10.4 bn
9.3 bn
Totallendingvolume(EURm)
Total Lending 2000-2012 : EUR 123 bn
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8. Risk Capital CIP Resources (SME) RSFF (SME / MidCap)
Entrepreneur, friends, family
Business Angels
Seed/Early Stage VC Funds
VC Funds
Bank Loans and Guarantees
Seed / Start-Up Phase Emerging Growth Phase Development Phase
Facility: High Growth
Innovative SME
Scheme (GIF), Ecotech
Purpose: IP
financing, technology
transfer, seed
financing, investment
readiness
Target Group: VC
Funds, Business Angels
EIF Product: Fund-of-
Funds
Competitiveness and
Innovation Program
(CIP) Guarantee
schemes
Growth financing for
SMEs
VC Funds,
SME guarantees
(loans, microcredit, equit
y/mezzanine,)
RSFF
Innovation financing
SMEs/MidCaps, Banks,
PE Investors (sub-
investment grade)
Loans (incl.
Mezzanine), Funded
Risk Sharing Facilities
with Banks (Investors)
Special Operations
RSFF / Investment Loans
RSFF
Investment Loans
RDI financing
MidCaps/Large
Corporates/Public
Sector Entities
(investment grade)
Guarantees
Special Operations
Later Stage
Counterparts
EIF EIB
EIB Group product offering for RDI
TECHNICAL ASSISTANCE
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Beneficiaries of RSFF financing
• Mid-Caps and large corporates (unrated / sub investment grade)
• Public agencies for S&T / R&D&I promotion
• Universities and research institutes
• European and national Research Infrastructures (open access).
• Industrial and regional clusters/networks
Eligible cost categories
• Project capital expenditures in tangible (buildings and equipment) & intangible
assets (Capital Formation)
• RDI cost (basic research, industrial research, development, proof of concept,
pilot & demonstration plants; innovation (technological or organisational)
• Upscaling / incremental working capital needs.
• Development and Acquisition of -proprietary- IPR, and other related operating
expenses.
RSFF, eligible benificiaries and costs categories

10. EIB Risk Sharing Finance Facility (“RSFF”)
RSFF Approved and signed transactions 2007- 08/2012 (in EURm)
RSFF Portfolio Distribution by Industry Segments
RSFF Portfolio - Geographical Distribution
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11. 1. The European Investment Bank: The EU Bank
2. Role of institutions in promoting linkages
3. Supporting innovation in the MENA region
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12. Supporting innovation in the MENA region
EIB has granted a series of loans over EUR 600m to technology parks in the Maghreb
region, education infrastructure projects, often combined with technical assistance, as
well as upstream technical assistance and capacity building.
Education:
 Enseignement Superieur Tunisia; ecole d’ingenieurs Gafsa, Kairouan and
Béja, buildings and instrumentation
 Education Maroc;
 Jordan Higher Education
Innovation Structures:
 Technopôles Tunisia; Sidi Thabet, Sousse, Sfax, Monsatir and Bizerte
 Technopôles Morocco; Rabat-
Salé, Oujda, Kenitra, Berkane, Agadir, Nouaceur, Meknes
Both loans combined with Technical Assistance for project implementation and capacity
building.
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13. Supporting innovation in the MENA region
Funds for innovative SMEs
As at 31st December 2012 the total active FEMIP risk capital portfolio under
management stood at EUR 469 million and consisted of 40 investment funds, 8 direct
investments, 9 microfinance operations and 290 co-investments with local
intermediaries. All operations are entirely dedicated to the private sector.
Tunisia; Fond d’Amorçage Tunisien (Phenicia Seed Fund), Global Loan Innovative
SMEs (with amongst others Amen Bank, Arab Tunisian, Tuniso-Kuwait, Union Bancaire
Commerce
Morocco: Massinissa Fund
Jordan: Capital for Growth Fund (JEDCO-Abraaj Capital); Badia Impact fund for
Technology Transfer
Lebanon; Building Block Equity Fund (Bader); Lebanon Growth Capital Fund
Palestine: Middle East Venture Capital Fund for export-oriented start-ups in the
services, software and communication sectors
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14. The CMI Work programme «Innovation Capacities»
2013-2015
Centre for Mediterranean Integration in Marseille: exchange platform / benchmarking
1) Management of Innovation Funds in MENA
2) Development of IP systems and rights; (1) National level and (2) University and
business level: The EIB and the WB through the CMI organized a workshop and
commissioned a study to understand the context of Intellectual Property (IP) assets in
the MENA region and to assess the potential of developing an IP system.
3) Beyond IP and incubation; how to overcome growing “pains”
4) Science and Innovation cities, (universities, research centres, innovative businesses)
5) Bridging the gap between Academic R&D, business and local innovation needs
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15. Areas under development
 Partnership with European Space Agency: EIB together with the European
Space Agency (ESA) and Luxembourg’s Research and Innovation Industry have
launched the “Space for Med Initiative” to use space-based technologies for
developing three key sectors: i) water management, ii) energy and renewable
energies and iii) transport and logistics in the Mediterranean partner countries.
Ultimately, new aspects of development in these sectors will be identified and will
lead to the implementation of concrete infrastructure projects. One example is the
development of broadband internet throughout the region.
 Maturation Funds: EIB is also interested in investing in TT (Technology Transfer)
vehicles and it is currently considering supporting maturation funds which will be
used for investing the projects in a large geographical area (broader then MENA).
 Programme to support diaspora start-up in the MENA: The EIB is working with
its partners to assess the feasibility of a programme that helps highly qualified
students in Europe set up innovative companies in their origin countries, thus
creation of job opportunities and support entrepreneurship in the Mediterranean
partner countries.
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16. Cultivating «RDI» and competitiveness
• Reflection on «new» financial products along RDI cycle; Regional RDI fund ?
• Products to strengthen research quality and quantity (fixed- and human capital)
• Products that contribute to the valorisation of research:
 Strengthen the Triple Helix (incl. PPP-schemes)
 MENA Science Cities, Cités d’Innovation
 Technology Transfer and IP policies.
 Spin-offs / incubator/ proof of concept / accelerators
 Twinning programmes with industrial partners (bridge towards industry)
 Innovation to increase employment / (K&L) factor productivity in the region (RD in
line with indigenous needs + absorption capacity of local industry)
• Consider regional (intermediated) scheme to attain critical mass.
• Technical Assistance to build indigenous capacities
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For more information
http://www.bei.org/
info@eib.org
Tel: (+352) 437922000