Tawfig is a young man who is 26 years He is living in Sana'a and was recently married. He is a university student, studying in the Accounting Department, the Faculty of Commerce and Economy, Sana'a University.
Tawfig's main business is a stationary and mobile accessories store based in the southern part of Sana'a. He started his business a year ago in a very intelligent way. That is, as he owns a house, he has a tenant with the same activity (stationary) who paid him the rent of some months in stationary materials. Tawfig collected those materials and purchased some more mobile accessories and started his independent business. Now, Tawfig has many clients and his income improved. When he is at university, he places his younger brother in the business.
Tawfig wanted to expand his business but he didn't have the financial capacity. He took this first loan from AMB and repaid it successfully. Then he took this loan, which is the second loan amounting to 100,000 Rials in order to purchase stationary supplies and phone accessories to meet his clients' demands.
In the future, Tawfig hopes to expand his business by opening a supermarket as well as to establish an independent business for his younger brother.
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.