Building Economic Sustainability through Tourism Project

Islamic International Arab Bank Launches A Trouism Loan Product

5 Jan 2017

The Islamic International Arab Bank, in partnership with USAID-funded Building Economic Sustainability through Tourism project, launched a special product for financing small and medium enterprises in the tourism sector.USAID BESTwill provide technical assistance to the owners of tourism projects, which will include preparing requests for funding and working to develop their skills in operations management.

General Manager of the bank, IyadAsali said, “Our bank is a leader in financing small and medium enterprises and collaborating with USAID BEST will allow us to offer technical advice, increase financial awareness and provide financial solutions that address the needs of projects operating in the tourism sector.” He added, “Financing small and medium-sized enterprises and collaborating with USAID BEST plays an important role in the economic development of Jordan’s tourism sector at a national level.”

Russell Bauer, Director of the Economic Development and Energy Office at USAID Jordan, explained, “It is through small and medium-sized enterprises that local communities benefit directly from tourism, and this new loan product will help such businesses grow and benefit tourists as well. This Sharia-compliant form of financing ensures that tourism entrepreneurs have access to all possible types of financing in Jordan.”

According to Al-Asali, “The bank has developed a financial framework for financing small and medium enterprises benefitting from the funding opportunities that the Central Bank of Jordan offers while complying with Islamic Sharia. This offers financing with reduced costs to enterprises operating in areas outside the capital Amman. In addition a Kafalaprogram was developed with the Jordan Loan Guarantee Corporation, which has contributed to reduce requirements and guarantees financing for small and medium enterprises.” He stressed that the Islamic International Arab Bank's mission as a Sharia- compliant financial institution is to play a role in economic development in the Kingdom by encouraging projects, which will result in increasing GDP, and reduce unemployment among young people.