Banque Misr plans First Islamic Financing to Support SMEs

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Banque Misr is planning to carry out the first Islamic financing for the small and medium-sized enterprises, worth 100 million Egyptian pounds (US$13.5 million).

The second largest public sector bank in Egypt is currently in talks with the Social Fund for Development (SFD) to agree on an Islamic financing contract to support SMEs in the country.

The Shariah-compliant contract is expected to be with Musharakah (Partnership) system, a senior source near from the talks told Amwal Al Ghad.

Banque Misr awaits the Egyptian Central Bank’s approval to work with the Musharakah system before signing the contract with SFD, the source noted.

Moreover, the source also stated that Banque Misr had recently inaugurated a new branch for Islamic transactions in Nasr City district. Therefore, the bank currently has 34 branches for Islamic transactions.

By end of 2014, Banque Misr has registered total Shariah-compliant funding of two billion Egyptian pounds (US$135 million).