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SME lending gap in Arab region must be filled, urges AMF

SME lending gap in Arab region must be filled, urges AMF

The Arab Monetary Fund (AMF) said there is a 300 per cent funding gap for small- and medium-sized enterprises (SMEs) in the region that banks are not filling. The Abu Dhabi-based fund said that while SMEs make up 80 per cent of businesses in the region, only one in five has a loan or line of credit. "The available financing options for SMEs are almost all in working capital forms as long-term funding for small- and medium-sized enterprises remains small," the AMF said. "Therefore there is a great opportunity for banks and other financial institutions in the Arab region to increase lending to SMEs as there is a need of 300 per cent increase of the current credit outstanding portfolio to meet SMEs funding requirements in the Arab region, which consequently will help creating jobs and reducing unemployment."

 

 

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