Three financial institutions from Gulf are studying applying for a licence to practice microfinance activities in Egypt within 2017, sources with knowledge told Amwal Al Ghad on Monday.
Those institutions are Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development, Kuwait Fund for Arab Economic Development, and the Arab Gulf Program for Development (AGFUND), the sources said.
AGFUND has earlier proposed to establish a microfinance bank in Egypt, yet the idea was rejected later and that what made the fund now considers founding a microfinance firm in the North African country, the sources added.
AGFUND is a regional organisation based in Riyadh, Saudi Arabia. AGFUND was established in 1980 upon the initiative of Saudi Prince Talal Bin Abdul Aziz Al Saud with the support of leaders of the Gulf Cooperation Council Countries: UAE, Bahrain, Saudi Arabia, Qatar, Oman, and Kuwait.
Mohammed Bin Rashid Establishment for SME Development
Established in 2002, Mohammed Bin Rashid Establishment for SME Development (Dubai SME) is a governmental organisation aimed at fostering the entrepreneurial spirit in the city of Dubai by creating a business enabling environment to facilitate the development of new businesses and stimulate entrepreneurial activities among Small and Medium Enterprises (SMEs). It was created as an integrated division of the Department of Economic Development (DED).
Kuwait Fund for Arab Economic Development is the first institution in the Middle East that took an active role in the international development efforts. It was founded in 1961 for the provision and administration of financial and technical assistance to developing countries.