Islamic Micro and Small Medium Enterprise (MSME) - Sanabel

Islamic Micro and Small Medium Enterprise (MSME) Finance Survey A survey for the collection of data on Islamic microfinance in the Arab region was conducted by Sanabel, beginning from Q4 2011 – Q2 2012, in collaboration with CGAP and through funding from AfD. Sanabel collected data from 36 Arab MFIs: 11 from Sudan, 7 from Palestine, 5 from Yemen, 4 from Iraq, 2 from Jordan, 2 from Lebanon, 1 from Syria, 1 from Egypt, 1 from Bahrain, and 1 from Saudi Arabia. The data was collected from both fully fledged Islamic Microfinance institutions as well as conventional MFIs with Islamic windows. The tables and graphs below summarize some of the key findings of the survey for Islamic microfinance providers across the Arab region; the data collected presents the FY 2010.

Islamic Microfinance Providers by Country1:

Country

Number of MFIs

# of Borrowers (conventional products) in 2010

GLP in USD (conventional products) in 2010

Bahrain Egypt Iraq

1 1 3

0 0 19,410

0 0 30,169,884

Average Loan Balance in USD (conventional products) in 2010 0 0 1554

Jordan

2

10,302

4,641,374

Lebanon

2

23,200

Palestine Saudi Arabia Sudan Syria

7

# of Clients (sharia compliant products) in 2010

Gross Financing Portfolio in USD (sharia compliant products) in 2010

Average Financing Balance in USD (sharia compliant products) in 2010

% of total Sharia compliant product’s clients to total borrowers in 2010

285 8,577 20,673

1,094,821 1,943,510 32,363,650

3,842 227 1,566

100% 100% 39%

451

7,328

15,442,163

2,107

42%

17,400,000

750

87,637

163,407,427

1,865

78%

5,810

9,783,910

1,684

3,289

11,427,706

3,475

36%

1

0

0

0

4,889

6,000,000

8 1

0 1,128

0 1,560,000

0 1383

66,883 16,300

60,983,588 11,040,000

1

1,227 912 677

100% 100% 94%

Data of 30 MFIs that provided 2010 data; data set excludes Al Thiqa – Iraq, Al Kuriami – Yemen since they only provide Islamic SME products, Bank Al-Khartoum, Youth Microfinance institution, Gezira since they started Microfinance operations in 2011, also the data set excludes Agriculture Bank- Sudan for not providing enough data on their portfolio. All rights reserved, Sanabel – the Microfinance Network of Arab Countries ©2012

Country

Number of MFIs

# of Borrowers (conventional products) in 2010

GLP in USD (conventional products) in 2010

Average Loan Balance in USD (conventional products) in 2010

# of Clients (sharia compliant products) in 2010

Gross Financing Portfolio in USD (sharia compliant products) in 2010

Average Financing Balance in USD (sharia compliant products) in 2010

% of total Sharia compliant product’s clients to total borrowers in 2010

Yemen

4

0

0

0

28,782

7,041,943

245

100%

Islamic Microfinance Providers by Country2: Islamic Gross Financing Portfolio

Sudan 20%

Syria Yemen BahrainEgypt 2% 1% 3% 0% Iraq 10%

Syria 7%

Bahrain 0% Yemen 12%

Iraq 8%

Sample Size: 30 MFIs

2

Jordan 3%

Lebanon 36%

Lebanon 53%

Saudi Arabia 2% Sample size: 30 MFIs

Egypt 4%

Sudan 27%

Saudi Arabia 2% Palestine 4%

Jordan 5%

Islamic Products' Number of Clients

Palestine 1%

Data of 30 MFIs that provided 2010 data; data set excludes Al Thiqa – Iraq, Al Kuriami – Yemen since they only provide Islamic SME products, Bank Al-Khartoum, Youth Microfinance institution, Gezira since they started Microfinance operations in 2011, also the data set excludes Agriculture Bank- Sudan for not providing enough data on their portfolio. All rights reserved, Sanabel – the Microfinance Network of Arab Countries ©2012

Average Financing Balance versus Average Financing Balance/ GNI per Capita by Country in 2010:

4,000

3,842

200% 3,475

3,500

180%

165%

160%

3,000

140%

2,500

120%

2,107 1,865

2,000

100% 1,566

1,500

67%

1,000 500

1,227

49% 24%

80%

72% 912

60% 677 25%

20%

40% 24521%

8%

Bahrain

Palestine

Jordan

Lebanon

Iraq

Average Financing Balance in USD (Sharia Compliant Products)

Saudi Arabia

Sudan

Syria

Yemen

227 9% Egypt

Average Financing Balance in USD (sharia compliant products)/GNI per Capita


All rights reserved, Sanabel – the Microfinance Network of Arab Countries ©2012

20% 0%

Microfinance and SME Providers and Products:

Corporation

2008

AL Aman Center

2005

NGO

Al Takadum

2007

NGO

Al Thiqa

2004

NGO

CHF ACSI

2003

NGO

FINCA Jordan

2007

NGO

Sole

2008

DEF

1989

Gov'tl Organization

Other

1989

Al Majmoua

1998

NGO

Other

2010

Qard Hassan

1987

NGO

Islamic Relief Palestine

1998

NGO

ACAD

1993

NGO

Asala

1997

NGO

Faten

1998

NBFI

Iraq

Corporation Corporation Corporation Corporation

2005 2007 9002 2003

Jordan

Lebanon

Palestine

Not Provided Not Provided Corporation

Corporation Corporation

1987 1998 1993 2008

2005

Islamic MF only

X

Sole Business

Not Provided

X

Window

Yes

X

Sole Business

Yes

X

Window

No

X

Window

No

X

Window

No

X

Window

Not Provided

X

Window

Not Provided

X

Sole Business

Yes

Window

Yes

X

Window

No

X

Window

Yes

X

Window

Yes

X


X

X X

X

X X X X

Takaful

NGO

Yes

Deposit

2008

Sole Business

Qard hassan

Bab Rizq Jameel

Egypt

Islamic MF only Islamic MF only Islamic MF only Islamic MSME Finance Islamic MF only Islamic MSME Finance Islamic MSME Finance Islamic MSME Finance Islamic MF only Islamic MF only Islamic MF only Islamic MF only Islamic MSME finance

Mudaraba

2010

Istisna'

Corporation

Separate financial stateme nts for Islamic MF?

Ijarah

Bank

Family Bank

Islamic finance: sole business or window?

Salam

2010

Bahrain

Institution offers

Products Musharaka

Ownership structure

Institution name

Business Model Murabaha

Institution type

Country

Year established

Year of launching sharia compliant products

Institutional Data

2001

NBFI

Corporation

2005

2001

Reef Finance Co.

2007

NBFI

Partnership

2008

Jana

2010

NGO

Corporation

2010

Muslim Aid Sudan

1991

NGO

SOLE

2008

PASED

2001

NGO

Youth Institution for Microfinance

2011

Community Development Foundation

2009

Corporation

NBFI

Corporation

NBFI

Corporation

Commercial Bank

Corporation

1992

Baraa Istitution

2010

NBFI

Social Development Institution for Sudanese Pensioners

2000

NBFI

Farmers Commercial Bank

1999

Corporation

Corporation

Islamic MSME Finance Islamic MSME Finance

Not Provided

X

No

X

Sole Business

2001

2011

Islamic MF only

Sole Business

2009

Islamic MF only

Sole Business

2007

2010

2000

Islamic MSME Finance Islamic MSME Finance Islamic MF only

X

Not Provided

Window

Yes

X

Yes

X

X

Yes

X

X

Yes

X

Yes

X

Yes

X

Yes

X

Window

Sole Business

Sole Business

Commercial Islamic MSME Corporation 2007 Window Yes Finance Bank All rights reserved, Sanabel – the Microfinance Network of Arab Countries ©2012

X

X

X

X

Sole Business

Sole Business

Qard hassan

Window

Mudaraba

X

Istisna'

Yes

Ijarah

Window

Islamic MF only Islamic MSME Finance Islamic MF only

Sudan Livestock Bank

Islamic MF only

Salam

Partnership


Musharaka

Cooperative


Takaful

Saudi Arabia

2005

Institution offers

Products

Deposit

PDF

Ownership structure


PARC

Institution type


Institution name

Year established

Country

Institutional Data

X

X

X

X

X

X

X

X

X

X

X

X

X

Family Bank - Bank Al Osra

Gezira

Syria

Yemen

Corporation

2008

2011

NBFI

2011

Bank of Khartoum

1913

Commercial Bank

Not Provided

2011

UNDP Rural Community Development program at Jabal Al Hoss

2000

NGO

Corporation

2000

Al Amal Microfinance Bank

2008

Microfinance Bank

Partnership

2008

Al Tadamun for small and microfinance

2006

Microfinance Bank

Corporation

2006

Abyan

2003

NGO

Not Provided

2003

Azal

2002

NGO

SOLE

2001

Alkuraimi

2010

Commercial Bank

Corporation

2010

Yes

X

Yes

X

Not Provided

X

X

Yes

X

X

X

Yes

X

No

X

X

X

Sole Business

Not Provided

X

Sole Business

Yes

X

X

X

Islamic MSME Finance

Sole Business


Sole Business

Islamic MF only

Window

Islamic MF only Islamic MSME Finance Islamic MF only Islamic MSME Finance Islamic SME only

Sole Business Sole Business Sole Business


X

X

X

X

Takaful

X

Sole Business

Deposit

Yes


X

Qard hassan

X

Sole Business

Mudaraba

Corporation

Yes


Istisna'

2008

Commercial Bank

1993

Institution offers

Ijarah

Corporation



Salam

1975

Commercial Bank

Products Musharaka

Ownership structure


Agricultural Bank Of Sudan

Institution type


Institution name

Year established

Country

Institutional Data

X

X

X

X

X

X

X

X

X

Islamic MSME Providers’ Legal Type: Local Legal Charter 3% 6% 15%

3% 49%

NGO NBFI Commercial bank Microfinance Bank

24%

Governmental Organization Cooperative



Sharia Approval Process: Sharia Approval Process (% of institutions) Other

72%

Governmental Supervision Hire Organization for Sharia Certification

44% 6%

Local Religious Council or Mosque Committee

28%

External sharia board/advisor

41%

Internal Sharia Board/Advisor

41%

Sample size: 32 MFIs

MFIs with Internal Shariah Board/Advisor

0

5


10

15

20

MFIs with External Shariah Board/Advisor

Not Provided

Not Provided

No

No

Yes

Yes

0

5


10

15


20 s