28-10-2012
ADIB Egypt Allocates 200 Million Egyptian Pounds to Finance Micro-enterprises
In Support of Entrepreneurship and Economic Development
ADIB Egypt Allocates 200 Million Egyptian Pounds to Finance Micro-enterprises
Cairo, 28 October, 2012 – As part of ADIB Egypt belief that supporting micro-enterprises is a key driving force in economic development which accordingly creates true societal development, the bank allocated EGP 200 million towards providing funding for small and micro enterprises. To achieve this, the bank has designed a comprehensive range of funding programs that are shari’a compliant.
Nevine Loutfy, CEO and Managing Director of ADIB Egypt, said that “the bank’s aim from offering Shari’a compliant micro-financing is to address the banking needs of a market segment that has been largely marginalized in terms of receiving financing services, with the end goal of elevating their standard of living and encouraging entrepreneurship.”
ADIB Egypt possesses extensive experience in micro financing, and was the first commercial bank to launch microfinance in Egypt in 1989. Starting with five financing units, the number of microfinance units grew over the years to reach the current number of 39 spread across 17 governorates nationwide. Moreover, ADIB Egypt developed to be the only bank in Egypt to offer Shari’a compliant micro financing.
The microfinance programs that ADIB Egypt offers range from 1,000 EGP up to 50,000 EGP, with repayment in fixed installments up to two years without collateral in accordance with Islamic Shari’a. The bank seeks to serve a large customer base and encourage local skills and crafts while preserving those that are in danger of extinction, while supporting projects launched by women in rural and urban areas – especially breadwinners and small-crafts entrepreneurs.
Commenting on this, Loutfy added “ADIB Egypt is targeting two main concerned topics from dedicating 200 million EGP to micro financing: first is to support and develop the professional activities for clients in this sector, and second is to raise their social and living standards.”
ADIB Egypt’s conditions for attaining micro financing are characterized by their flexibility, which require that the client has the necessary skills to operate the business, as well as a minimum of one year experience in the project’s field, a sound reputation and that the project be in accordance with Islamic Shari’a.
ADIB Egypt is committed to the basic principles of Islamic banking, as evidenced by its usage of Musharakah and Murabha in financing clients according to a motivational system that encourages clients committed to repaying on the agreed dates. Also, in dealing with cases of inability to pay in a timely manner due to unforeseen factors such as death or the inability to work, the bank has established an emergency fund where it places 3% of the revenue of micro-enterprises financing to cover for emergencies.
