NBE Studies Offering EGP 60m Islamic Finance for SMEs

National Bank of Egypt (NBE) studies offering Islamic credit facilities for 4 customers in SMEs ranging from EGP 50 million to EGP 60 million.

The volume of Islamic deposit at NBE was close to one billion EGP at the end of 2011, while less than 20% of which were invested because of the low demand on Islamic banking products at that time, sources informed.

NBE plans to expand in Islamic banking by 80% of the total investment rate this year as there is an increasing demand on Islamic banking products.

NBE assigned EGP 150 million to offer SMEs Murabaha (Islamic finance) under the finance contract NBE had signed with Social Fund for Development in value to EGP 75 million. NBE also plans to train employees at SMEs finance unit to deal with Islamic finance services.

Sources added that NBE will offer Islamic banking products namely Mushraka (Islamic joint venture), Mudaraba (Islamic profit sharing), Ijara (Islamic lease); such as educational Ijara product and services Ijara which will be offered in the third quarter of the current year.

NBE will offer Islamic products mainly in Dokki branch, where 80% of its deposits exits, and Al-Azhar branch, where 20% of its deposits exists, sources said