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Grameen-Jameel Fights Poverty Across the Arab World

Dubai, UAE, April 13, 2009: Two years after being launched as the first poverty-focused social business in the Arab world, Grameen-Jameel Pan-Arab Microfinance Limited (Grameen-Jameel) is celebrating significant milestones that are helping to transform microfinance's impact across the Arab World.

Through its Guarantee Fund, Grameen-Jameel has brokered more than US$ 44 million in financing for microfinance institutions, including several landmark transactions that are opening new opportunities for microfinance institutions in Egypt, Jordan, Syria and Tunisia. It was the first company to obtain financial leverage on a guarantee in Egypt for its partner, Dakahlya Businessmen's Association for Community Development, and the first to facilitate a commercial debt facility in Syria for First Microfinance Institution. It has also awarded 312 scholarships for microfinance practitioners to participate in major regional and international training events, which has enabled them to build a peer network to share their expertise and learn from leading institutions in the field.

Fadi Jameel, Grameen-Jameel board member and president of Abdul Latif Jameel Community Services International, says: "The potential microfinance industry in the Arab world is estimated at US$ 5.5 billion and we are already over one third of the way toward our 2011 target of actively helping one million poor people throughout the Arab world exit poverty."

In 2008 alone, Grameen-Jameel's partners added more than 110,000 new clients, an increase of 46 per cent over new clients Grameen-Jameel had impacted through its partner relationships as of 2007.

Jameel explained: "This program is about empowering the poor. In most cases, microfinance loans are used by individuals to build a business for themselves. Whether a Jordanian woman uses her skills to produce embroidered gifts, or a group in Morocco sells farm produce, they are making every effort to ensure their micro-business is a success. Escaping from the chains of poverty is an extremely powerful motivation to make these investments succeed."

Founded in 2007, Grameen-Jameel established its head office in Dubai's International Humanitarian City in February 2008. Inspired by the work of Nobel Peace Prize winner Dr Muhammad Yunus, in Bangladesh, Grameen-Jameel was created as a social business by US-based Grameen Foundation and Saudi Arabia's Bab Rizq Jameel Limited, a subsidiary of Abdul Latif Jameel Group . The organisation has established strong relationships with twelve microfinance institutions in Morocco, Tunisia, Egypt, Lebanon, Jordan, Yemen, and most recently in Palestine. The organisation's partners have benefited from its commitment to improving industry standards throughout the region.

Grameen-Jameel's chairman, Zaher Al Munajjed, says: "It is crucial to ensure the hard work of the past two years continues. Grameen-Jameel will continue to support microfinance developments in areas of the Arab world not yet benefiting from these opportunities. Abdul Latif Jameel's collaboration with Grameen Foundation has been a clear success."

Al Munajjed added: "We would like to see more Arab investors tap into the potential of microfinance. "Long-term this will lead to economic development and growth in the poorer communities throughout the Arab region. We are convinced the time is ripe to see the microfinance sector in the Arab world accelerate its rapid evolution from a mainly donor-driven activity to a one that develops on a sound commercial basis with social performance management as a clear driver."

Alex Counts, president of Grameen Foundation, said: "Grameen-Jameel founder, Mohammed Jameel's vision for expanding microfinance throughout the Arab world is quickly being realised. We believe 2009 will continue to show impressive results for this dynamic and driven organisation that has already helped thousands and will continue to help many thousands more."

An estimated sixty million people in Arab countries live on less than US$ 2 per day, with less than 10 per cent of demand for microfinance currently being met.

www.grameen-jameel.com.

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Imm Mohammed
Imm lived in a modest two-room apartment in Amman, Jordan, with her family. In 1999 she took her first steps by accessing a loan of 250 JDs from Tamweelcom to buy raw materials. Alongside her husband, she began to produce socks, pillow covers, and dresses, based out of their modest home. The business gradually grew and Imm Mohammed now produces over 400 pairs of socks monthly. Following her huge success in the Jordanian market, Imm Mohammed's work spread to Saudi Arabia, UAE, Egypt and the USA. Her business has enabled her to improve her standard of living and relocate to an independent house. Awarded "Best micro-entrepreneur in Jordan" by Sanabel Network for Microfinance in the Arab Countries at its 2007 Annual Conference in Tunisia, she is currently working with her husband on promoting and marketing their products online.

About Grameen-Jameel
Grameen-Jameel is a social business established in 2007 as a joint venture between Grameen Foundation and Bab Rizq Jameel Limited, a subsidiary of Abdul Latif Jameel Group . The company alleviates poverty in the Arab World through forming strategic partnerships with microfinance institutions and providing technical and financing support through its guarantee program. To date, Grameen-Jameel has facilitated local currency financing of US$44 million backed by US$20 million in guarantees to its partners. Grameen-Jameel has reached more than 350,000 new microfinance clients through its partners in Morocco, Tunisia, Egypt, Lebanon, Jordan, Palestine and Yemen.

About Abdul Latif Jameel Group
The Abdul Latif Jameel (ALJ) Group, based in Jeddah, Saudi Arabia, is one of the Arab World's most successful and respected business groups. ALJ was founded by the late Sheikh Abdul Latif Jameel in 1945 and in 1955, he was granted the sole distributorship for Toyota in Saudi Arabia, which the ALJ Group has maintained to date. It has an active community services program, which emphasises education, training, and development to help younger generations achieve independence and self-sustainability.

Recent Grameen-Jameel partner achievements:
Grameen-Jameel's partner Al Tadamun was awarded the 2008 Grameen Foundation/ Grameen-Jameel Pioneer in Microfinance Award.

Grameen-Jameel partner Tamweelcom was ranked 8th in the 2008 Mix Global 100 Composite Ranking of Microfinance Institutions (MFIs). The ranking issued by the Microfinance Information Exchange, Inc. highlighted the performance of well rounded leading MFIs that boost outreach and lower costs to serve clients in a transparent manner.

About Grameen Foundation
Grameen Foundation is a global non-profit organisation that combines microfinance, technology, and innovation to empower the world's poorest people to escape poverty. Its global microfinance network and technology initiatives reach an estimated 45 million people in 28 countries across Asia, Africa, the Americas, and, through Grameen-Jameel Pan-Arab Microfinance, Ltd., in the Arab World. Based in Washington, D.C., Grameen Foundation was founded in 1997 by Alex Counts, who began his work in microfinance with 2006 Nobel Peace Prize Laureate Dr. Muhammad Yunus, the founder of Grameen Bank. Dr. Yunus is a founding and current member of Grameen Foundation's board of directors. For more information on Grameen Foundation, please visit www.gramee

For more media information, please contact Ian Hainey on +971 50 466 1368 or email ianhainey@hotmail.com

© Press Release 2009