SMEs Bulwark Arab World against Unemployment – Barakat

Mohamed Barakat, chairman of Banque Misr, and Union of Arab Banks asserted that Many Arab countries are suffering from unemployment dilemma, noting its rate reached 24 million in Arab countries.

Barakat  added in a key note speech at SMEs A Future Vision For Sustainable Development in the Arab World conference which will be holding today March27 in Sharm El- Sheikh, mentioning the important role that small and medium enterprises (SMEs) can play in supporting and developing economies of the Arab region in facing the impacts of all political, social and economic transitions. The SMEs effectively contribute in supporting the economic growth and achieving sustainable development through its effects on economic and social variables.

Small and Medium Sized Projects account for 80% from the total projects and 90% exceeded the total institutions in Arab country, Barakat noted.

Many Arab countries have taken models for the development of SMEs  , led by the Egyptian market with the help of I-Score firm that made ​​it easier for banks work.

Central Bank of Egypt is playing a prominent role in encouraging the banks for financing SMEs through taking several measures, Exemption of SME-lending banks from the 10% reserves requirement is at the top.

Saudi Arabia is one of the Arab countries which attained growth in SMEs sector, in addition to Mohammed Bin Rashid Establishment for Development of Small and Medium Size Enterprises (MBRE).

Furthermore, Barakat illustrated that Small and Medium industries play a vital role in supporting food industries, so that the governments should cooperate with the banking sectors in order to facilitate obtaining the licenses and necessary measures.