MICROCAPITAL BRIEF: Arab Gulf Program for Development (AGFUND) Partners with Philippines Chamber of Commerce and Industry (PCCI) to Bring Ibdaa Microfinance Bank to Eighth Country

The Arab Gulf Program for Development (AGFUND), a Saudi Arabia-based development organization, and the Philippines Chamber of Commerce and Industry (PCCI), a policy- and advocacy-oriented group that represents approximately 35,000 businesses in the Philippines, have signed an agreement to create an iteration of the “Ibdaa Microfinance Bank” (IMB) that is intended to increase financial inclusion of poor people and micro-, small and medium-sized enterprises (MSMEs) in the Philippines [1][2]. IMB in the Philippines will be the eighth such bank setup with the support of AGFUND. The other seven banks are located in Bahrain, Jordan, Lebanon, Sierra Leone, Sudan, Syria and Yemen.

IMB’s operations are expected to commence in the Philippines by the end of 2014 with initial capital of USD 5 million. The operations of IMB will include services that are compliant with Islamic law (Sharia), which disallows the charging of interest [3][4].

By Nisha Koul, Research Associate

About Philippines Chamber of Commerce and Industry (PCCI): The Philippines Chamber of Commerce and Industry (PCCI) was formed in 1978 by the merger of the Chamber of Commerce of the Philippines and the Philippines Chamber of Industries. PCCI advocates for business growth and development and, among other services, provides support to entrepreneurs, international trade relations and business innovation. As of 2014, PCCI membership is comprised of 136 industry associations, 37 business councils and 104 local chambers that together represent approximately 35,000 enterprises in the country [2].

About Arab Gulf Program for Development (AGFUND): The Arab Gulf Program for Development (AGFUND) is a regional developmental funding organization based in Saudi Arabia. AGFUND was established in 1980 with leadership from His Royal Highness Prince Talal Bin Abdul Aziz Al Saud and the support of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. AGFUND works in development at the international level through a partnership with the United Nations and other public and private institutions.

Sources and Additional Resources:

[1] Phil Star, “PCCI, AGFUND form new bank,” http://www.philstar.com/business/2014/01/27/1283292/pcci-agfund-form-new-bank

[2] Philippines Chamber of Commerce and Industry, “President’s Report,” https://docs.google.com/viewer?url=www.philippinechamber.com%2Fimages%2Fdownloadables%2FMVB_Presidents_Report_2012.pdf

[3] AGFUND, “AGFUND Sees Microfinance Growth in Philippines,” http://www.agfund.org/en/media/news/agfund_news/Pages/22-1-2014.aspx

[4] Arab News, “Filipinos welcome opening of Ibdaa Microfinance Bank,” http://www.arabnews.com/news/516551

MicroCapital Story, September 23, 2013, “Rizal Microbank of the Philippines Sets Up Eight Mobile Microbusiness Offices (MBOs),” https://www.microcapital.org/microcapital-brief-rizal-microbank-of-the-philippines-sets-up-eight-mobile-microbusiness-offices-mbos/

MicroCapital Story, August 27, 2010, “Ibdaa Microfinance Bank Launched in Syria as Part of Arab Gulf Program for United Nations Development (AGFUND),” https://www.microcapital.org/microcapital-brief-ibdaa-microfinance-bank-launched-in-syria-as-part-of-arab-gulf-program-for-united-nations-development-agfund/#more-6667

MicroCapital Universe Profile, Philippines Chamber of Commerce and Industry (PCCI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Philippines+Chamber+of+Commerce+and+Industry

MicroCapital Universe Profile, Arab Gulf (AGFUND), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arab+Gulf+Program+for+United+Nations+Development+%28AGFUND%29

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