Egypt’s Aman expects Islamic microfinance licence this month

Aman for Microfinance, part of Egyptian fintech firm Aman Group, said on Sunday it has applied for an Islamic microfinance licence and is waiting for the Financial Regulatory Authority’s (FRA) approval within the current month.

“We have submitted an inclusive file about all the measures and policies needed to start the (Islamic microfinancing) activity to the FRA.” Ahmed El-Khatib, managing director of Aman Microfinance, told Amwal Al Ghad.

El-Khatib said in earlier statements that the company plans to inaugurate branches for Shariah-compliant financing, and two branches are prepared for the inauguration in the Upper Egypt region.

In late August, microfinance company Maksab has earned FRA’s approval for the sharia-compliant microfinance licence. This was the first-of-its-kind licence to be granted for a financial institution to practice microfinance activities in the non-bank financial sector in accordance with the Islamic financing system

FRA’s chairman Mohamed Farid said in a statement that the approval was part of its plans to boost financial inclusion in the country by widening microfinance options to unbanked microbusinesses.

The number of companies licenced by the FRA to engage in microfinance activities in Egypt reached 19 following Maksab’s new licence.