AlHuda Center of Islamic banking and economics (CIBE) Initiated a Islamic Microfinance research study for Yemen Microfinance Network (YMN) in Yemen. This study will be conducted in the Yemen’s capital Sana’a including Taiz, Adan and Almoukla, so that the Islamic Microfinance products can be examined broadly and further Islamic Microfinance products can be developed for Yemen Microfinance sector with the compatibility of existing structure. Consequently, maximum people utilize the Microfinance facility and the alleviation of poverty would be assured.

1. CENTRE OF ISLAMIC BANKING
& ECONOMICS
Press Release
Islamic Microfinance Research Study initiated in Yemen
Existing demand and future trends of Islamic Microfinance will be determined: Zubair Mughal
8th May, 2013
(Sana’a/Lahore): AlHuda Center of Islamic banking and economics (CIBE) Initiated a Islamic Microfinance
research study for Yemen Microfinance Network (YMN) in Yemen. This study will be conducted in the
Yemen’s capital Sana’a including Taiz, Adan and Almoukla, so that the Islamic Microfinance products can
be examined broadly and further Islamic Microfinance products can be developed for Yemen
Microfinance sector with the compatibility of existing structure. Consequently, maximum people utilize
the Microfinance facility and the alleviation of poverty would be assured.
Najah Al-Mugahed Managing Director of Yemen Microfinance Network explained the association
memorandum of research study that Microfinance market size in Yemen is more than one million but
only 80,000 (eighty thousand) people are barely facilitating with the services and products of
Microfinance which is approximately 8% of the total Microfinance market size. Its major reasons are;
Non-existence of complete Islamic Microfinance range of products, Domination of Murabaha in Islamic

2. Microfinance sector, increasing rate of Murabaha and percentage of interest in Microfinance are the
obstacles in the expansion of Microfinance industry. An appropriate implementation plan would be
prepared through this research study to strengthen the Yemen’s Microfinance sector.
Muhammad Saleh Al-Lai Chairman of Yemen Microfinance Network and Executive Director of Al-Amal
Microfinance Bank proclaimed that Yemen’s Islamic Microfinance market is very promising and we want
to make it stronger through this study so that Yemen could get a distinguished level through Islamic
Microfinance. He further mentioned that this is our privileged that Al-Amal Microfinance Bank won the
award of Islamic Microfinance Challenge 2010 which was organized by Islamic Development Bank and
CGAP (World Bank) which shows a clear understanding of our strong structure of Islamic Microfinance.
Muhammad Zubair Mughal Chief Executive Officer of AlHuda Center Islamic Banking and Economics
(CIBE) said that our selection for the research study is a great honor for AlHuda CIBE. He mentioned that
they have developed a strong research methodology for this study and used different research
instruments e.g. surveys, focus group discussion (FGDs), stake holder’s interviews, desk review of MFI’s
and meetings with prestigious professionals of Microfinance industry to get primary & secondary
information etc which will help to design the ideal products for Yemen Islamic Microfinance sector.
He further mentioned that the share of Islamic Microfinance in Yemen’s Microfinance sector is
approximately 90% and remaining 10% are also converting their portfolio into Islamic Microfinance,
Yemen Microfinance Industry will be further strengthened with the development of new Islamic
Microfinance products, It will increase the outreach of Microfinance sector and help out to eradicate
poverty.
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New Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com