Egypt's Al Nouran sugar production facility, a 2.5 billion Egyptian pound ($357 million) project, could begin operations in 2016 after securing a Sharia-compliant financing package, the project sponsors said.

Al Nouran is expected to refine more than 500,000 tonnes of sugar annually, potentially reducing the country's reliance on imported sugar by up to 25 per cent, the Islamic Corporation for the Development of the Private Sector (ICD) said.

The ICD, the private sector arm of the Jeddah-based Islamic Development Bank, said it had extended a financing package including equity investment, mezzanine financing and standby guarantees of up to $46 million.

"The facility is expected to conclude construction and begin its operations in 2016," the statement said.

Shareholders in the project include Al Nouran Multitrading, the ICD, the Kuwait-based Arab Fund for Economic and Social Development and the Egyptian Sugar and Integrated Industries.-Reuters