Abu Dhabi Islamic Bank (ADIB) Egypt has announced the launch of the first microfinance company compatible with the principles of Islamic Sharia, after obtaining the licence from the Financial Regulatory Authority.
The new company is the first to provide all financing products and services that are compatible with the principles of Islamic law in the microfinance market, in accordance with the conditions and rules for licensing companies to engage in this financing activity, and thus the new company becomes one of the important financing arms of the bank.
The bank said, in a statement, that microfinance is one of the most important economic tools that contribute to advancing the economy in the country, as it helps in integrating a large segment of society into official channels, and assisting them in obtaining the necessary financing for their projects.
According to the bank, the company is set to focus its efforts on enabling owners of microenterprises and young generations of male and female entrepreneurs to build their future, by providing financing support in accordance with the principles of Islamic Sharia, in a way that works to transform their future dreams and aspirations into tangible successes.
Mohamed Ali, CEO and Managing Director of Abu Dhabi Islamic Bank – Egypt, said that this step comes out of the bank’s keenness to provide various financing products that are compatible with the principles of Islamic Sharia, to suit all segments of society, and to serve the goals of financial inclusion, and in line with the directives of the Financial Regulatory Authority. The Central Bank and the Financial Regulatory Authority are concerned with paying particular attention to the microenterprise sector.
Ahmed Al-Khatib, CEO and Managing Director of the Microfinance Company, explained that the authorized capital to launch the company amounts to EGP 100m, and the paid-up capital is EGP 25m, pointing out that work will be done to raise it after the start of the company’s activity, in conjunction with an increase in the volume of funds provided.
Al-Khatib indicated that the company has many competitive advantages, on top of which is the use of modern technology tools that are compatible with the principles of Islamic law, with a focus on expansion and spread in all governorates and regions most in need of financing, explaining that the maximum financing is EGP 220,000.
The company aims to finance the broad sector of craftsmen and small and micro businesses through 200 Islamic financing branches spread in all governorates and centers of the Republic, and through a group of products that are compatible with the principles of Islamic Sharia, and financing systems based on financial technology whose procedures are characterized by speed and ease.
Funding is provided for all existing activities and businesses to expand and maintain their continuity and non-banking financial services to reach all segments of Egyptian society.
