Al Baraka Bank of Egypt plans to offer Musharaka finance for small and medium enterprises (SMEs) by next January by brining into effect the EGP 200 million Musharaka contract signed with the Social Fund for Development (SFD).
Sources said the bank decided to delay the SME Musharaka finance program by next year instead of last October because of the current political turmoil and the deteriorated economic situation.
The Musharaka finance is the most effective Islamic financing product in the market and it witnesses high demand from foreigners. The bank targets to increase the SME finance portfolio from EGP 1.1 billion to EGP 1.6 billion in 2013.
Al Baraka Bank of Egypt achieved net profit of EGP 67.8 million in the first half of 2012, compared to EGP 66.4 million in the first half of 2011, registering a growth rate of 2.1%.
