Al Baraka to provide Shari’ah-compliant finance in Egypt

Al Baraka Banking Group has signed the first Islamic partnership contract to finance small projects in Egypt with the World Bank through the Social Fund and Al Baraka Bank Egypt. Through its banking unit headquartered in Cairo, Al Baraka Bank Egypt, the group aims to expand finance to small projects as “this vital and important sector has become today the highest priority for countries and international financial institutions due to the bloated problem of unemployment,” it said in a statement. The contract was signed by both Ghada Walli, the Secretary-General of the Social Fund for Development and Ashraf Ghamrawy Vice Chairman and Chief Executive Officer of Al Baraka Bank Egypt, in order to finance new and existing small projects though Islamic partnership. The signing ceremony was attended by Oinger Anderson — World Bank Vice President for the Middle East, Craig David — Director of National Affairs of Egypt, Dr Sahur Nasr — a major financial economist for the Middle East and North Africa, World Bank and the leaders of Al Baraka Bank Egypt and Social Fund for Development. The total amount of the contract is EGP 200 million, divided equally between the Social Fund for Development through funding from the World Bank and Al Baraka Egypt. The aim of the contract is to diversify the forms of products offered by the Social Fund for Development to include the products compatible with the provisions of Islamic law other than commercial products. The amount of the partnership contract will be directed to finance new and existing small projects and to support these projects for development, expansion, replacement and renewal through the provision of Shari’ah-compliant finance. The aim to establish projects that provide permanent and temporary jobs that help boost production and raise income for broad segments which would yield a positive economic and social contribution to the recovery of development, especially in light of current circumstances of the country. The use of funds vary and cover the financing of machinery, new spare parts and working capital for existing projects, with the possibility of financing the purchase of machinery and equipment used, and includes also the financing of medical centers, clinics, pharmacies, doctors and pharmacists. These finances will be provided through all branches of Al Baraka Bank Egypt. It is expected that this contract will contribute to the establishment of approximately 4400 projects and provides more than 22,000 job opportunities. From gulftoday