Agricultural Credit Bank To Set Up Productive Villages

The Principal Bank for Development and Agricultural Credit is in talks with the Ministry of Agriculture to buy agricultural lands with areas ranging from 5,000 feddans (5,190 acres) to 10,000 feddans (10,380 acres) to set up agricultural projects such as productive villages to produce agricultural products and crops in new cities.

Sources said the negotiations are still in initial stages. The bank has set different scenarios which are buying lands and selling them to farmers under Murabaha scheme, or contracting with a company to reclaim the land and buying it from the company to be sold afterwards to farmers or entering into partnership with farmers under Musharaka scheme.

The project aims at providing job opportunities to farmers. The bank negotiates with the Ministry to receive land with the required facilities and services. The bank has not decided the investment cost of the project yet as it will be determined on the lands that will be allocated by the Ministry to the bank.