Basel Rahmy, CEO of Egypt's Micro, Small, and Medium Enterprises Development Agency (MSMEDA), announced Monday that the agency partnered with several banks to provide Islamic financing solutions for small enterprises. These banks include Faisal Islamic Bank of Egypt, United Bank, Al Baraka Bank, and the National Bank of Egypt. Speaking at the third Al Baraka Regional Conference in Cairo, which was part of the fifth edition of the Arab Sustainable Development Week organized in partnership with the League of Arab States, Rahmy highlighted MSMEDA's efforts to offer a range of financing mechanisms, including Islamic finance. The event was supported by strategic partners such as the Ministry of Planning and Economic Development, international organizations, and the World Bank. Rahmy explained that MSMEDA's financing is provided through various Islamic methods, such as restricted Islamic Mudarabah, Islamic Musharakah, and Murabaha sales. The agency is also exploring the implementation of other Islamic financing tools, including restricted Mudarabah agreements with donors in the field of Islamic finance. Rahmy emphasized the Egyptian government's commitment to supporting micro, small, and medium enterprises (MSMEs), following directives from Prime Minister Mostafa Madbouly, who also chairs MSMEDA. These efforts are designed to provide both financial and technical support to enhance MSMEs' contributions to the national economy. He also highlighted MSMEDA's collaboration with various state entities to diversify services for entrepreneurs. These initiatives are aimed at supporting thousands of project owners in the sector, generating employment opportunities, and improving the economic conditions of business owners and their employees. Rahmy underscored the importance of legislation governing MSMEs, particularly Law No. 152/2020, which offers tax incentives and other benefits to encourage informal enterprises to transition into the formal economy. He praised the cooperation between MSMEDA and the Ministry of Finance in implementing these reforms. The law also facilitates business establishment through MSMEDA's one-stop-shop units across Egypt, where representatives from relevant government entities help simplify procedures for entrepreneurs. Rahmy concluded by reaffirming MSMEDA's commitment to fostering innovation in financing and supporting small businesses as key drivers of sustainable economic development.
