A shareholding contract for Yemeni microfinance institution (MFI) Alamal Micro Finance Bank has been signed by representatives from the Government of Yemen, Yemeni government-established Social Fund for Development (SFD), and the Arab Gulf Program for United Nations Development Organizations (AGFUND). Each party has a USD 10 million minority share in the Yemeni MFI. Alamal Micro Finance Bank is scheduled to begin microfinance operations this year.The founding of Alamal Micro Finance Bank was first announced in the spring of this year, by the SFD and the Yemeni Government. Abdul Karim Al-Arhabi, Deputy Prime Minister for Economic Affairs and Minister of Planning and International Cooperation, has stated that there are over 1 million potential microfinance clients in Yemen. Alamal Micro Finance Bank will be entering a microfinance sector that currently serves 30,962 borrowers and 28,192 savers. The amount of the combined loan portfolios of Yemen’s microfinance market is unavailable information.

Only two Yemeni MFIs report to the MIX, the microfinance information clearinghouse, the Sanaa Microfinance Project Azal, and the National Microfinance Foundation.

By Quentin Ruiz-Esparza, Research Associate

Additional Resources:

Yemen Observer: “Alamal Micro Finance Bank to Open.”, Faisal Darem, contact@yobserver.com

Government of Yemen: “Yemen English Egovernment Homepage.”

Social Fund for Development – Yemen: “SFD- Yemen.”, sfd@sfd-yemen.org

Arab Gulf Program for United Nations Development Fund: “Welcome to AGFUND.”, info@agfund.org

Microfinance Gateway: “Yemen to Establish First ‘Bank for the Poor.’”

Yemen Times: “Yemen’s Microfinance Industry: Booming Potential.” By Raidan Al-Saqqaf, alsaqqaf@gmail.com

The Mix: “Home Page.”, info@mixmarket.org

Sanaa Microfinance Project: Phone: 00967-1-602254

National Microfinance Foundation: Phone: 00967-1-820699