Prince Talal bin Abdul Aziz, president of the Arab Gulf Program for Development (AGFUND), announced on Monday the formation of a special advisory council for its microfinance banks operating in nine countries.
AGFUND has so far extended $300 million in loans to these banks benefiting 200,000 poor people.
The new body will implement the AGFUND program by making use of its experience in the field of microfinance that aims to extend financial aid to the deserving and productive members of the society, especially the poor.
According to Nasser Al-Kahtani, AGFUND executive director, the council will also enlarge the scope of these banks within the framework of AGFUND objectives for the benefit of the targeted communities in the Arab world and those in the least developed communities in need of the innovative services being offered by these banks. They will be providing guidelines and lessons on the microfinance methods of operation.
He said the council was set up as a result of the rapid growth and expansion of these banks not only in Arab countries but also in some Asian and Latin American countries.
The first meeting of this council will be held in Morocco on the sidelines of AGFUND’s International Prize presentation ceremony to be held in the Moroccan capital Rabat on Jan. 12, 2015.
Al-Kahtani said that this move keeps pace with the success of AGFUND Microfinance banks. According to him, their initiative has become the real core of the microfinance industry in the Arab societies and other developing countries, leading to real financial inclusion.
He pointed out that the council has a cross-section of international, regional and Arab expertise, and a group of businessmen who are involved in the development of their communities. “Such membership strengthens AGFUND’s experience that has transformed microfinance in the region from traditional work to the existing development practice based on social business,” Al-Kahtani added.
AGFUND expands operations
