Al Baraka Egypt seeks to renew World Bank’s $22.5 mln SMEs financing deal

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Al Baraka Bank Egypt seeks to renew its SMEs financing agreement worth 200 million Egyptian pounds ($22.5 million) with the World Bank, its chief executive Ashraf El-Ghamrawy said Wednesday.

Al Baraka Egypt, part of Bahraini Al Baraka Banking Group, concluded in 2012 a contract with the Egyptian Social Fund for Development to finance small and medium-sized enterprises by the Islamic partnership system (Mushraka) from the finance granted by the World Bank.

The bank has recently secured the Islamic Development Bank’s (IDB)’s credit line worth 50 million pounds, which will be in form of restricted mudaraba.

Restricted mudaraba means the client may specify a business in which to invest, in which case the mudarib is restricted only to such business.