2005 Arab Microfinance Analysis and Benchmarking Report - English

Arab microfinance enjoys one of the most favorable environments for growth. Low market penetration rates combine with low inflation and generally stable economies to provide a space where the sector can grow unfettered. Standing at the peak of its youth, the region is moreover unshackled by competition and high financing costs, hallmarks of more mature sectors. Arab microfinance institutions face lower hurdles than their global peers and can more easily attain profits, all while responding to the needs of the lower segment of the microfinance market. The Moroccan sector continues to lead in outreach, but Egyptian institutions are fast on their peers’ heels and are showing new signs of growth.

Benchmarking Arab Microfinance 2005 captures some of the intricacies of the sector’s performance through an analysis of 23 market-making Arab institutions surveyed by the Microfinance Information Exchange, Inc. (MIX). Beyond exploring variations within the region, the following pages also contextualize sector performance within a global set of 446 leading MFIs. Combined with two year panel data from 19 institutions, a picture of trends within the Arab sector begins to emerge.