22-01-2024
Arzaq microfinance gets FRA license to operate 13 branches in 10 governorates
ADIB-Egypt CEO and MD: We open our doors to young people to obtain microfinancing facilities by launching 13 branches across 10 governorates.
Arzaq’s strategic plan aims to expand and reach a large customer base.
Cairo: January 22, 2024: Abu Dhabi Islamic Microfinance Company (Arzaq) announced that it has obtained the license to open its first 13 branches, with approval from the Financial Regulatory Authority (FRA). This is part of the company’s expansion strategy through the opening of new branches. The goal is to reach 60 branches across Upper Egypt and the Delta by the end of this year, taking tangible steps toward community development.
Last year, the company obtained approval from the Central Sharia Supervisory Committee of the FRA to grant its first license to issue the company's initial products under the Murabaha and Musharakah systems. The FRA also decided to approve the contracts for these new products as the first products compliant with Islamic Sharia principles on September 11, 2023.
Mohamed Aly, Abu Dhabi Islamic Bank-Egypt’s (ADIB-Egypt) CEO and Managing Director, said that obtaining the license to establish the first 13 branches in 10 governorates, as the initial phase in both Upper and Lower Egypt, is part of the company's geographic expansion strategy. The company aims to further expand across all governorates in the coming period, with a focus on Upper Egypt governorates, to provide diverse financing products that comply with Islamic Sharia principles, catering to all segments of society, Aly pointed out.
Ahmed ElKhatib, Arzaq CEO and Managing Director, also explained that work is underway to start operating the branches and equipping them with the necessary technological systems. The branches will be located in the following cities and areas: Aswan, Dokki, Zagazig, Fayoum, Benha, Damietta, Damanhur, Sohag, Shubra El Kheima, Shebin El Kom, Tanta, Faqous, and Kafr El Sheikh. He added that by the end of next year, the total number of branches is expected to reach 60 across Upper Egypt and the Delta cities, contributing to community development in these areas and reaching a large customer base.
Alongside its leadership in Islamic banking, ADIB-Egypt was one of the first banks to work in the area of microfinance. The bank operates with an expansionary strategy, reflected in its desire to grow in this area by establishing a specialized microfinance company. This initiative stems from the belief that microfinance is one of the most important economic tools that contribute to driving the country's economy forward, as it helps integrate a large segment of society into formal channels and assists them in accessing the necessary funding for their projects. The launch of Arzaq by the bank aims to empower micro-business owners and young entrepreneurs to build their future by providing financial support that complies with Islamic Sharia principles.
