Transforming Microfinance Institutions in the Arab World: Opportunities, Challenges and Alignment of Interest
May 31, 2018 | A. Silva, M. Khaled, K. Beshay | IFC
This paper presents the Arab context, and discusses the benefits, costs, challenges, and opportunities associated with transforming a not-for-profit into a for-profit entity – not necessarily a bank. While what has worked elsewhere may not necessarily be applicable in the Arab World, the body of evidence is quite clear that institutional growth is sustained by a variety of funding channels, and that the opportunity to grow and better serve the underserved has encouraged many MFIs in the Arab World to reconsider transformation. This study also presents the results of a survey conducted jointly by IFC and Sanabel to better understand where MFIs in the Arab World currently stand in the transformation process.