Building Opportunity from Challenge: MIGA and Şişecam’s Transformation of Egypt’s Glassware Industry
In the heart of Cairo’s industrial zone stood a glass manufacturing plant with untapped potential. Originally incorporated in 2005 as Pearl Glass Manufacturing S.A.E., the facility only began operations in 2014 after years of delay. However operational delays, management missteps and financial losses plagued the plant, and by 2016, it was on the brink of closure.
For Paşabahçe, a leading glassware producer in Turkey, and the third largest globally, the plant represented a gateway to the Middle East and Africa, a chance to bringnworld-class manufacturing to Egypt, and an opportunity to create lasting development impact. The Middle East and Africa glassware market was booming, with a $560 million market size and 4% annual growth. Egypt, with its low labor and energy costs, abundant raw materials, and unrivaled access to global markets through trade agreements, was the ideal location for expansion.
Yet, the risks were real. Türk Eximbank, the official export credit agency in Turkey, did not offer investment insurance, which made investing in a loss-making facility 1,200 km from Istanbul a challenge. Paşabahçe needed a partner to help turn risk into opportunity.
In 2018, MIGA issued a $16.2 million guarantee to Paşabahçe Turkey for its first-ever investment in Egypt, supporting the acquisition and revitalization of the struggling Pearl Glass Manufacturing S.A.E. plant via its subsidiary.
In 2020, following Paşabahçe Turkey’s merger with its parent company Şişecam, the guarantee was transferred to Şişecam as the new guarantee holder.
The guarantees cover 90 percent of the investment for up to 15 years against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.
The project turned a loss-making facility into a regional export hub, leveraging Egypt’s strategic trade agreements and cost advantages.
The investment created hundreds of jobs, transferred advanced manufacturing know-how, and positioned Egypt as a key player in the fast growing Middle East and Africa glassware market.