1. The Premier Source for Microfinance
Data and Analysis
© 2012, MIX and Sanabel. All rights reserved.
MIX and Sanabel Analysis of Key Trends
2012 Arab Region
Regional Snapshot
April 2013

2. © 2012, MIX and Sanabel. All rights reserved.
2
Data Sources and Acronyms
Sources
Performance of Microfinance
Institutions (MFIs)
Funding Structure of MFIs
MIX Market
MIX Market Funding Structure Data
Islamic Micro and Small Medium
Enterprise (MSME) Finance Survey
A survey for the collection of data on Islamic microfinance in the
Arab region was conducted by Sanabel, beginning from Q4 2011 –
Q2 2012, in collaboration with CGAP and through funding from
AfD.
Cross-Border Funders Investments CGAP Cross-Border Funder Survey
Acronyms
ECA Eastern Europe and Central Asia
EAP East Asia and the Pacific
LAC Latin America and the Caribbean
SA South Asia
SSA Sub-Saharan Africa

3. © 2012, MIX and Sanabel. All rights reserved.
3
Global Outreach and Scale
Access the Graph's data
MENA continues to be the smallest market in the terms of both borrower outreach
and Gross Loan Portfolio.
0
10
20
30
40
50
60
0
10
20
30
40
50
60
2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011
SSA EAP ECA LAC MENA SA
LoanPortfolio(Billions,USD)
Borrowers(Millions)
Borrowers and Gross Loan Portfolio
Number of Active Borrowers Gross Loan Portfolio

4. © 2012, MIX and Sanabel. All rights reserved.
4
Outreach and Scale in MENA
Within the
region, microfinance
markets are in different
stages of development
with particularly Egypt
and Morocco showing
higher levels of outreach
and scale compared to
younger markets in
Iraq, Sudan, and Syria.
Access the Graph's data
Egypt remains the largest
market in the region in
terms of borrowers, while
Morocco is still the largest
market in terms of
portfolio.
0
100
200
300
400
500
600
700
800
900
1000
0
100
200
300
400
500
600
700
800
900
1000
LoanPortfolio(Millions,USD)
Borrowers(Thousands)
Borrowers and Gross Loan Portfolio of MENA countries
Number of Active Borrowers Gross Loan Portfolio

5. © 2012, MIX and Sanabel. All rights reserved.
5
Outreach and Scale in MENA
Despite some instability in the region, outreach of the microfinance sector remains
consistent.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011
LoanPortfolio(Billions,USD)
Borrowers(Millions)
Trends in Number of Borrowers and Gross Loan Portfolio in MENA
Number of active borrowers Gross Loan Portfolio
Access the Graph's data

6. © 2012, MIX and Sanabel. All rights reserved.
6
Outreach and Scale in MENA by Country
In fact, most of the region saw growth in outreach, with Egypt also showing recovery
after the downturn in 2010 due to political volatility. Morocco experienced drop in loan
portfolio primarily due to consolidation of bad debt as well as contracting outreach.
0
0.2
0.4
0.6
0.8
1
1.2
0
0.2
0.4
0.6
0.8
1
1.2
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
Egypt Iraq Jordan Lebanon Morocco Palestine Sudan Syria Tunisia Yemen
LoanPortfolio(Billions,USD)
Borrowers(Millions)
Trends in Borrowers and Gross Loan Portfolio
Number of Active Borrowers Gross Loan Portfolio
Access the Graph's data

7. © 2012, MIX and Sanabel. All rights reserved.
7
Average Loan Balance per Borrower –
Regional Breakdown
MENA experiences low average loan balance per borrower , also when taking macroeconomic
indicators into account. While this indicates MFIs in MENA target the low income market, a deeper
dive in the region reveals a combination of income level among clients.
Average loan balance per borrower
(weighted average)
Average loan balance per borrower/GNI
per capita
(weighted average)
0%
50%
100%
150%
200%
250%
300%
SSA EAP ECA LAC MENA SA
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
SSA EAP ECA LAC MENA SA
Access the Graph's data

8. © 2012, MIX and Sanabel. All rights reserved.
8
Average Loan Balance per Borrower –
MENA Breakdown
While Iraq, Lebanon, and Palestine have the highest average loan balances and are the only ones
above the regional average of $1100, Palestine is the only country with an average loan balance /
GNI per capita greater than 50%.
While boasting the largest markets, Egypt and Morocco also have some of the lowest average loan
balances per borrower.
Average loan balance per borrower
(weighted average)
Average loan balance per borrower/GNI
per capita
(weighted average)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Average loan balance per borrower
MENA Average loan balance per borrower
0%
50%
100%
150%
200%
250%
300%
Average loan balance per borrower / GNI per capita
MENA regional average loan balanace / GNI per capita
Access the Graph's data

9. © 2012, MIX and Sanabel. All rights reserved.
9
MENA in the Global Context
To view a dynamic version of this graph with more data, please click here.
For more data on women borrowers, please click here.
Almost two-thirds of loans
in MENA are to female
borrowers.
The region has the 2nd
lowest level of outreach
to rural clients.
Corporate and SME
lending remains minimal at
5% of MENA’s total
portfolio.

10. © 2012, MIX and Sanabel. All rights reserved.
10
Funding through Debt
MENA has the highest capital-to-asset ratio and relatively low debt-to-equity ratio. This is
explained by the fact that most countries in MENA are legally prohibited from collecting
deposits, whereas deposits form a larger portion of funding for MFIs in other regions.
0%
10%
20%
30%
40%
50%
60%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
SSA EAP ECA LAC MENA SA
Regional Leverage and Capital / Asset
ratio in 2011
Debt to equity ratio (weighted average)
Capital/asset ratio (weighted average)
0
20
40
60
80
100
120
140
160
180
SSA EAP ECA LAC MENA SA
Millions(USD)
Liabilities across the region
Borrowings Short-term financial liabilities Deposits
Access the Graph's data

11. © 2012, MIX and Sanabel. All rights reserved.
Country Dec 2011 09/11 Growth
Egypt $300 - $499 mln 
Morocco $100 - $299 mln 
Iraq $50 - $99mln 
Tunisia $2 - $49 mln 
Jordan $2 - $49 mln 
Lebanon $2 - $49 mln 
West Bank & Gaza $2 - $49 mln 
Yemen $2 - $49 mln 
Syria $2 - $49 mln 
Djibouti $2 - $49 mln 
Algeria $2 - $49 mln 
Iran < $2 mln 
Commitments by Country*
(as of Dec. 2011, and 2009/20011 Trend)
* Country allocation is available for 93% of MENA commitments
$1.1 bln of Cross-border Funding to MENA
Source: CGAP Cross-Border Funder Survey

12. © 2012, MIX and Sanabel. All rights reserved.
12
Funding Structure by Funder Type
While DFIs represent 19% of the funding sources globally, in MENA they account for only 2%. Financial
Institutions serve as the main channel for committed funds in MENA, and they offer lower interest rates
than DFIs.
DFI
19%
Financial
Institution
32%
Fund
22%
Governme
nt
9% Other
18%
Global Funding by Funder Type in
2011
DFI
2%
Financial
Institution
66%
Fund
16%
Governme
nt
13%
Other
3%
MENA Funding by Funder Type in
2011
0%
2%
4%
6%
8%
10%
0
80
160
240
320
400
DFI Financial
Institution
Fund Government Other
Funding(Millions,USD)
Funding in MENA by Funder Type in 2011
Amount (USD), total Interest Rate (MENA) Interest Rate (Global average)
Access the Graph's data

13. © 2012, MIX and Sanabel. All rights reserved.
13
Efficiency and Profitability
MENA exhibits one of the lowest Financial Expense / Assets ratios globally and the second
highest Personnel Expense / Assets ratio.
0%
5%
10%
15%
20%
25%
30%
35%
SSA EAP ECA LAC MENA SA
Regional Efficiency and Profitability ratios
Administrative expense/ assets
Financial expense/ assets
Provision for loan impairment/ assets
Personnel expense/ assets
Financial revenue/ assets
Access the Graph's data

14. © 2012, MIX and Sanabel. All rights reserved.
14
Efficiency and Profitability: Modest Returns
Despite the turmoil in the region, MENA exhibited a modest ROA.
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
SSA EAP ECA LAC MENA SA
Return on Assets in 2011
Access the Graph's data

15. © 2012, MIX and Sanabel. All rights reserved.
15
Efficiency and Profitability: Returns Levels by Country
A declining return on assets was primarily observed in the Arab Spring countries.
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
MENA Egypt Iraq Jordan Morocco Palestine Sudan Syria Tunisia Yemen
Return on Assets
Access the Graph's data

16. © 2012, MIX and Sanabel. All rights reserved.
16
Portfolio Quality - deep dive in MENA
On average, most countries experienced an increase in Portfolio at Risk in
2011, particularly the countries associated with the Arab Spring. Over the course of
2011, Write Offs did not yet increase alongside the riskier portfolio.
0%
2%
4%
6%
8%
10%
12%
14%
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
2009
2010
2011
MENA Egypt Iraq Jordan Lebanon Morocco Palestine Sudan Syria Tunisia Yemen
Trends in Write-off ratio and PAR > 30 days
Write-off ratio Portfolio at risk > 30 days
Access the Graph's data

17. © 2012, MIX and Sanabel. All rights reserved.
17
Islamic Microfinance Providers in the Arab countries
The data is based on a survey on Islamic microfinance in the
Arab region conducted by Sanabel, beginning from Q4 2011 –
Q2 2012, in collaboration with CGAP and through funding
from AfD.
Data collected for FY 2010 from 36 MFIs from 10 Arab
countries: 11 from Sudan, 7 from Palestine, 5 from Yemen, 4
from Iraq, 2 from Jordan, 2 from Lebanon, 1 from Syria, 1
from Egypt, 1 from Bahrain, and 1 from Saudi Arabia. The
data was collected from both fully fledged Islamic
Microfinance institutions as well as conventional MFIs with
Islamic windows.

18. © 2012, MIX and Sanabel. All rights reserved.
18
Islamic MSME Providers’ Legal Type
Unlike conventional microfinance, almost half the Islamic microfinance providers are NGOs, while 24
percent of the microfinance providers surveyed were Non-Banking Financial Institutions, and 15
percent of microfinance providers surveyed were Commercial Banks.
49%
24%
15%
6%
3% 3%
Local Legal Charter
NGO
NBFI
Commercial bank
Microfinance Bank
Governmental Organization
Cooperative
Sample Size: 36 MFIs

19. © 2012, MIX and Sanabel. All rights reserved.
19
Islamic Microfinance Providers by Country
As Islamic finance is the sole system applied in Sudan, Sudan is the country with the highest
number of participants in the survey, followed by Palestine.
Data of 30 MFIs that provided 2010 data; data set excludes Al Thiqa – Iraq, Al Kuriami – Yemen since they only provide Islamic SME products, Bank Al-Khartoum, Youth Microfinance
institution, Gezira since they started microfinance operations in 2011, also the data set excludes Agriculture Bank- Sudan for not providing enough data on their portfolio.
Country
Number of
MFIs
# of Clients
(sharia compliant
products) in 2010
Gross Financing
Portfolio in USD
(sharia compliant
products) in 2010
Average Financing Balance
in USD
(sharia compliant
products) in 2010
% of total Sharia compliant
product’s clients to total
borrowers in 2010
Bahrain 1 285 1,094,821 3,842 100%
Egypt 1 8,577 1,943,510 227 100%
Iraq 3 20,673 32,363,650 1,566 39%
Jordan 2 7,328 15,442,163 2,107 42%
Lebanon 2 87,637 163,407,427 1,865 78%
Palestine 7 3,289 11,427,706 3,475 36%
Saudi
Arabia
1 4,889 6,000,000 1,227 100%
Sudan 8 66,883 60,983,588 912 100%
Syria 1 16,300 11,040,000 677 94%
Yemen 4 28,782 7,041,943 245 100%

20. © 2012, MIX and Sanabel. All rights reserved.
20
Islamic Microfinance Providers by Country
Lebanon recoded the highest share in both outreach and GLP with the Al Qard Al Hassan program
recording 36% and 53%, respectively, followed by Sudan with 8 MFIs recording 27% and 20%,
respectively.
Data of 30 MFIs that provided 2010 data; data set excludes Al Thiqa – Iraq, Al Kuriami – Yemen since they only provide Islamic SME products, Bank Al-Khartoum, Youth Microfinance
institution, Gezira since they started microfinance operations in 2011, also the data set excludes Agriculture Bank- Sudan for not providing enough data on their portfolio.
Bahrain
0%
Egypt
1%
Iraq
10%
Jordan
5%
Lebanon
53%
Palestine
4%
Saudi Arabia
2%
Sudan
20%
Syria
3%
Yemen
2%
Islamic Gross Financing Portfolio
Sample size: 30 MFIs
Bahrain
0%
Egypt
4%
Iraq
8%
Jordan
3%
Lebanon
36%
Palestine
1%
Saudi Arabia
2%
Sudan
27%
Syria
7% Yemen
12%
Islamic Products' Number of Clients
Sample Size: 30 MFIs

21. © 2012, MIX and Sanabel. All rights reserved.
21
Average Financing Balance versus Average Financing
Balance/GNI per Capita by Country in 2010
Saudi Arabia recorded the lowest average financing balance / GNI per capita with 8%
followed by Egypt at 9%, while Palestine recorded the highest with 165%, followed by
Sudan at 72%.
3,842
3,475
2,107
1,865
1,566
1,227
912
677
245 22724%
165%
49%
20%
67%
8%
72%
25% 21%
9%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Bahrain Palestine Jordan Lebanon Iraq Saudi
Arabia
Sudan Syria Yemen Egypt
Average Financing Balance in USD (Sharia Compliant Products)
Average Financing Balance in USD (sharia compliant products)/GNI per Capita
Sample Size: 30 MFIs

22. © 2012, MIX and Sanabel. All rights reserved.
About MIX
MIX is the premier source for objective, qualified
and relevant microfinance performance data and
analysis. Committed to strengthening financial
inclusion and the microfinance sector by
promoting transparency, MIX provides performance
information on microfinance institutions
(MFIs), funders, networks and service providers
dedicated to serving the financial sector needs for
low-income clients. MIX fulfills its mission through
a variety of platforms.
On MIX Market (www.mixmarket.org), we provide
instant access to financial and social performance
information covering approximately 2,000 MFIs
around the world. Our publications, MicroBanking
Bulletin and MIX Microfinance World, feature
thorough and timely analysis based on qualified
data and research. Incorporated in 2002, MIX is a
non-profit organization headquartered in
Washington, DC with regional offices in
Azerbaijan, India, Morocco, and Peru.
About Sanabel
Sanabel - the Microfinance Network of Arab
Countries - is the only and largest membership-
driven regional microfinance network in the Arab
region. Sanabel envisions all low income people in
Arab countries with access to comprehensive
financial services. In addition, Sanabel advocates
for growth, innovation, best practices &
standardization of the microfinance sector in Arab
countries.
Since establishment in 2002, Sanabel’s membership
has grown from 14 members to 80 Arab MFIs by the
end of 2010 (representing NGOs, non-bank
financial institutions, international
organizations, banks that provide direct
lending, top organizations that provide in-direct
lending, and local networks) and individuals from
13 different Arab countries as well as International
Friends of the network.
22
About MIX and SANABEL

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MIX Global and Project Partners
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