Libya promotes Islamic finance mechanisms for SMEs

Nov 27, 2013

The Islamic Corporation for the Development of the Private Sector (ICD) and the Libyan Ministry of Economy signed an agreement on Monday designed to promote access of small and medium-sized enterprises (SMEs) and the unemployed Libyan youth to Sharia-compliant finance mechanisms.

The Islamic Corporation for the Development of the Private Sector (ICD) and the Libyan Ministry of Economy signed an agreement on Monday designed to promote access of small and medium-sized enterprises (SMEs) and the unemployed Libyan youth to Sharia-compliant finance mechanisms.

The agreement - which was signed during the 29th CONCEC session in Istanbul - is expected to contribute to Libya's economic development through job creation.

The ICD and the Libyan government will collaborate to set up new Islamic finance products specifically designed to cater for the needs of small businesses and the young unemployed.

"We are positive that these Islamic finance mechanisms shall serve the needs of the SME community in Libya by offering alternative finance solutions coupled with support services needed for any SME to be successful," said ICD's CEO Khalid Al-Aboodi, quoted by Arab News.

He added that both parties are expected to start deploying the first phase of this agreement within a few days.

Around half of young people in Libya are currently unemployed, according to the Libyan Bureau of Statistics.ADNFCR-2976-ID-801665457-ADNFCR