Shafaq News / The Iraqi Al-Ahli Bank announced on Tuesday securing a $50 million loan from the U.S. agency (DFC) to support small and medium-sized enterprises in Iraq.
In a statement today, the bank clarified that the entire loan is earmarked for its clients among small and medium-sized enterprises at a low cost. In return, the bank commits to contributing an additional $35 million in facilities over the next five years to the portfolio of loans for these businesses.
It highlighted that this loan will enable continued support for this vital sector by increasing funding and working capital. This, in turn, will drive commercial activity, preserve jobs, and ensure further economic stability, according to the bank.
The statement further emphasized, "the increasing international recognition in recent years of the crucial roles played by SMEs in creating new job opportunities, significantly contributing to economic development, and alleviating crises related to poverty and unemployment. Additionally, SMEs complement larger enterprises by supporting them as their main suppliers."
According to a report by the World Bank, small and medium-sized enterprises in Iraq constitute about 90% of the total operating companies in the country, providing around 70% of job opportunities and contributing approximately 25% to the gross domestic producion.
Despite being responsible for most job provision in the private sector (which accounts for around 60% of jobs in Iraq), SMEs face numerous challenges, including liquidity shortages, as stated in the bank's release.
The statement reiterated the bank's commitment to supporting SMEs by launching dedicated programs aimed at empowering this customer segment to enhance their competitiveness and business development.
It's worth noting that the Iraqi Al-Ahli Bank currently leads the list of operating banks in the Iraqi banking market, with total assets nearing $2.8 billion, supported by approximately 91% growth in customer deposits. The bank serves a growing customer base of around 200,000 clients, managed by over 1,000 employees across 27 branches and 200 ATMs.