Union of Arab Banks Calls For Establishing A SMEs Development Body

SMEs Development Forum organized by Union of Arab Banks in Cairo called on the Arab governments to support SMEs through forming a body or a ministry for financing and developing these enterprises.

The Forum recommended tapping the Islamic sharia-compliant financing products offered by Islamic banks to micro, small and medium enterprises.

This came at the end of the two-day forum and conference in Cairo that was attended by more than 300 Arab bankers from 16 Middle Eastern countries, in addition to international financial institutions including World Bank.

The Forum confirmed on the importance of building integrated relations with large institutions and firms and small and medium enterprises so that the latter become a key supplier for the first.

The Forum also recommended updating the study done by Union of Arab Banks and World Bank over the current financial situation of SMEs and offering this study for all Arab banks. The Forum also advised Arab banks to categorize SMEs and set proper programs for each category, in addition to allocate a fixed rate of its portfolio for financing SMEs.

The Conference called on SMEs to comply with transparency standards and establish Credit Bureau in the Arab countries.