Abdulrhman is a married 33-year-old man who lives with his four children in Sana'a, Yemen. In 2000, he opened a store for spices (baharat). He began by opening a small business with limited capital to buy shelves and make simple decorations to attract his customers. He is a hardworking man who prefers innovations. He has many customers and they appreciate him. He has a good reputation and a good credit history. He asked for funds of 600,000 YER from AMB to stock his store with basic needs products like beans, rice, flour, sugar, lentils, eggs, coffee, raisins, etc. He hopes to complete building a house and to buy a car.
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.