Abdu is a 40-year-old man who lives in Sana'a, Yemen. He is the father of nine children. His elder son is still in primary school and the youngest is three years old. Abdu studied only in primary school and dropped out looking for income sources to help him stay alive.
Abdu started his business long ago on a movable wheelbarrow usually containing a tomato basket and one other basket of potatoes. In order to feed his family, which kept waiting for his arrival, he would move from one neighborhood to another in Sana'a so that he could generate some money after paying back the original price of the baskets. Abdu kept on this way for a long time and then developed his business to be based in a fixed place under an umbrella, where he now sells his vegetables instead of moving on a wheelbarrow.
Abdu took a loan of 150,000 YER from Al-Amal Microfinance Bank in order to purchase enough vegetables to meet the demand of his clientele, which has expanded. This loan will allow him to purchase all types of vegetables and to build a good relationship with his clientele by serving their needs.
In the future, Abdu hopes to expand his business and improve his capital, as this will help in generating more income. Abdu is also saving to buy a small truck, which he will use to bring his vegetables from the vegetable market.
About Al-Amal Microfinance Bank
Al-Amal reaches out to low-income micro-entrepreneurs and small business owners in Yemen with a suite of credit, savings, and insurance products tailored for Muslim borrowers. Before lending through Al-Amal, please consider the following:
1) Due to ongoing security concerns, full due-diligence of Al-Amal was conducted remotely rather than on-site. This makes Al-Amal atypical among Kiva's Field Partners, as Kiva staff have not conducted an on-site assessment. Al-Amal's assessment included in-person meetings with the top management in other, more secure locations in the Middle East.
2) Because Yemen is a new and unstable environment, there is a possibility that future loan repayments could be held indefinitely in the country for regulatory reasons, even if individual borrowers pay back their loans. As a lender to borrowers in Yemen, you accept this additional risk.
Additionally, all of Al-Amal's products are Sharia compliant and customized for its Muslim clients. Most of the loans are structured as Murabaha interest free loans. Al-Amal purchases goods for its borrowers and charges them a markup or fee. Al-Amal is also experimenting with Ijarah loans (an Islamic leasing product). For more information on Islamic microfinance, please click here.