Al Baraka Egypt secures Islamic Development Bank $5.6mn SME credit line

Al Baraka Bank Egypt, part of Bahraini Al Baraka Banking Group, has secured the Islamic Development Bank’s (IDB) credit line worth 50 million Egyptian pounds ($5.6 million), its chief executive said Saturday.

Ashraf El-Ghamrawy, chairman of Al Baraka Bank Egypt, further said his bank had received the IDB credit line through the Egyptian Social Fund for Development, to go for funding small and medium-sized projects in the North African country.

Al Baraka Bank Egypt will receive in the coming few days another tranche of 50 million pounds, which will be in form of restricted mudaraba,  El-Ghamrawy added.

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

Al Baraka Bank Egypt plans to maxmise its support for small and medium-sized projects (SMEs) by performing various financing roles by acting as the financial advisor or the promoter of the project, the banking official said.