Agricultural Credit Bank: Islamic Finances Hit EGP 507 Mln In August

The Principal Bank for Development and Agricultural Credit stated that the value of Islamic finances (Musharaka and Murabaha) registered EGP 507 million, mostly for micro-enterprises at the end of last August

Sources said the value of Islamic deposits reached EGP 800 million at the end of last August, expecting such value to increase in the upcoming period.

The bank plans to launch a new product for young farmers who won from one feddan (1.038 acres) to three feddans through providing them with the production requirements such as fertilizers and pesticides, besides a finance ranging from EGP 5,000 to EGP 15,000.

The bank plans to offer sharia-complaint finances for planting 1,000 feddans in Fayoum and Sharkia as the lender targets to expand in financing micro, small and medium enterprises. The bank will provide the farmers with in-kind loans and a cash finance of up to EGP 5,000.

The Islamic banking products are witnessing high demand from farmers as they prefer to conduct banking transactions in compliance with sharia law. Expanding in offering Islamic banking products may increase the bank’s customers which reached, while there are about six million farmers.