Al Baraka Islamic Bank- Egypt and the Social Fund for Development (SFD) signed a finance contract to offer new and existing small enterprises musharaka finances (Islamic partnership) amounting to EGP 200 million through loans from the World Bank and Al Baraka Bank.
The aim of offering Islamic products is diversifying the products offered by SFD, said Dr. Ghada Wali, secretary general of the SFD. SFD targets to finance the establishment of new small enterprises and help existing ones to develop and expand. Such finances will contribute to creating job opportunities, increasing production and income and accordingly boosting Egypt’s economy.
Such loans will be used to finance the purchasing of machines and spare parts in addition to being used as operating capitals, Wali added.
Ashraf El Ghamrawy, deputy chairman and CEO of Al Baraka Islamic Bank – Egypt, said such finances will be available at the bank’s 23 branches. Such move came as part of Al Baraka Bank’s leading role in supporting small enterprises which have direct impact on the national economy, El Ghamrawy added. Such finances will contribute to establishing about 4400 small enterprises, he noted.
Al Baraka Islamic Bank- Egypt injected about EGP 2.1 billion finances into large companies in the Egyptian market. The bank’s SMEs finance portfolio reached EGP one billion at the end of last June. The bank targets to raise the value of SMEs finance portfolio to EGP 1.5 billion at the end of 2012.
