In 2009, Al-Amal Microfinance Bank, a microcredit bank established in 2002 in Yemen, provided credit of YER 300 million (USD 1.5 million) to 5,858 low-income individuals.According to Mohammed al-Lai, Executive Director of Al-Amal, approximately 53 percent of these loans were made to women entrepreneurs. Currently, 36 percent of the active accounts in the bank are held by women. Other statistics provided by Al-Lai include the following: total number of active accounts in the bank had reached 4,784, and the total number of children’s savings accounts reached 675 by the end of December 209.

Al-Lai stressed that the mission of the bank is to provide financial services to individuals who cannot attain such services from a traditional bank, either because of their small volume of desired credit or because of their lack of guarantees usually required by banks. “Our bank aims to contribute in the fight against poverty, create jobs and improve economic and social conditions of lower income customers, as well as develop and provide sustainable financial services to meet the needs of customers. We intend to achieve a national presence in all regions of Yemen by opening a network of branches and by developing partnerships with various institutions,” he added.

By Jay Kumar, Research Assistant

About Al-Amal Microfinance Bank:
Established in 2002, Al-Amal Microfinance Bank was the first microcredit bank formally established in Yemen. The bank was created through a joint effort between the Yemeni Government, which was represented by the Social Fund for Development (SFD), and the Arab Gulf Program for United Nations Development Organizations (AGFUND). The Government of Yemen currently holds 45 percent of the outstanding shares while AGFUND owns 35 percent.

Additional Sources:
1. Source Article: http://www.yobserver.com/business-and-economy/10017933.html
2. Al-Amal Microfinance Bank: http://www.alamalbank.com/en_site/