The First Islamic Partnership Contract to Finance Small Projects In Egypt with the World Bank through the Social Fund and Al Baraka Bank Egypt
In the context of the Strategy of Al Baraka Banking Group to the development and revitalization of the economies of countries where it operates and through its banking unit in the Egyptian market Al Baraka Bank Egypt, the Group aims to expand the finance to small projects as this vital and important sector become today the highest priority for countries and international financial institutions due to the bloated problem of unemployment.
Al Baraka Bank Egypt, under the auspices of Mr. Adnan Ahmed Yousif, President and Chief Executive of Al Baraka Banking Group and Chairman of Al Baraka Bank Egypt, signed the first Islamic partnership contract to finance small projects with the Social Fund through the World Bank on Monday, 13/8/2012.
The contract was signed by both Mrs. Ghada Walli, the Secretary-General of the Social Fund for Development and Mr. 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 Ms. Oinger Anderson - World Bank Vice President for the Middle East, Mr. 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 EP 200 million, divided equally between the Social Fund for Development through funding from the World Bank and Al Baraka Bank 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, through the long the experience of Al Baraka Banking Group for being one of the pioneers of Islamic banking in the region and Al Baraka Bank Egypt, which comes at the forefront of Islamic banks operating in Egypt in the area of finance according to Islamic modes of finance with leading practical and integrated experience necessary to deal with the needs of this sector.
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 finance of all forms of Islamic products for the establishment of projects that provide permanent and temporary jobs that help boosting 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 uses of funds is 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, where they spread in the provinces of Egypt, which up to 23 branches. This contract represents a continuation of the vital role of Al Baraka Bank Egypt as an Islamic banking unit for Al Baraka Banking Group in Egypt and the partnership funds will be used to establish small projects that contribute directly to support the national economy. It is expected that this contract will contribute to the establishment of approximately 4400 projects and provides more than 22,000 job opportunities.
Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poorâ€™s investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$1.5 billion, while total equity amounts to about US$1.8 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 400 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.