Mohammed is a 40-year-old married man who lives in Sana'a, Yemen. He has eight children and most of them are in school. He is a tailor who owns his business. He started his business by buying a small machine with his own capital. Within a short period, he has successfully managed his business and opened a sewing shop. The business allows him to support his family, as he has sole responsibility for them. He faces problems with financial investments due to the bad situation in Yemen. Therefore, he took out a loan of 300,000 YER from AMB to purchase the necessary materials for sewing such as fabrics and textiles to sew pants and shirts. He hopes to provide better opportunities for his family in the future, ensure a prosperous future for himself and have a house.
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.