Paper
2011 Middle East and North Africa Regional Snapshot
Identifying key trends in the microfinance sector of Middle East and North Africa in 2011
35 pages
This snapshot of the Middle East and North Africa (MENA) region analyzes key trends in the region in 2011 as compared to other regions in the world. It focuses on MFI performance and funding structure, the Arab Spring, and investments from cross-border funders. It also presents macroeconomic data and a detailed study of microfinance in Iraq. The study presents findings from 64 MFIs from 10 countries in MENA with a gross loan portfolio of USD 1.2 billion. Findings include:
- Arab region recorded the lowest outreach and scale, compared to its global peers;
- About 62% of loans in MENA are to women borrowers;
- MENA has low outreach to rural clients;
- MENA has low costs because of its considerably low cost of funds, which is due to its limited ability to secure commercial funds;
- MENA recorded the highest Return on Assets as a result of its low total expenses and average financial revenue;
- Different countries in the region exhibit great variations in MFI efficiency and profitability;
- MENA remains the region receiving the least funding for microfinance;
- Arab spring revolutions negatively impacted MFIs and their clients.
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