Dubai-based Mashreq Bank on Wednesday launched its Egyptian operations with ten branches in Cairo and Alexandria and a capital outlay of  560 million Egyptian pounds ($99.4 million).

Speaking at the launch, the bank's chief executive Abdul Aziz Al Ghurair said banks played an important role in Egypt's recent economic growth.

'The Egyptian banking sector is a key player in the growth of the country's economy, especially in light of the remarkable GDP growth that averaged 7 percent over the last two years,' Ghurair said.

Earlier this month, Egypt's finance minister said growth was expected to slow to between 4 and 4.5 per cent in the current fiscal year, from 7.2 percent a year earlier.

The global financial crisis has affected Egypt's main sources of income, with revenues from the Suez Canal and tourism declining.

Foreign direct investment fell to $4 billion between July and December 2008 from $7.7 billion in the same period a year earlier.

Mashreq, Dubai's largest bank by market value, had said last year it planned to open 30 branches in Egypt within the next three to four years.

Its Egyptian operations will offer a wide range of retail products and services including auto and personal loans and overdraft facilities.

In a speech prepared for delivery, the bank's head of international banking John Iossifidis said Mashreq will pursue selective regional expansion, including in Qatar, Bahrain and Kuwait.

"Quite simply, our strategy is to expand organically and selectively in the region while continuing to invest in our core franchises and build on long-standing strengths," he said.--Reuters