Sana’a, April 1, 2007 - IFC,
the private sector arm of the World Bank Group, announced today that Saba
Islamic Bank has become the first bank in Yemen and the first Islamic bank
to join IFC’s Global Trade Finance Program as an issuing bank.
The Global Trade Finance Program (GTFP)
promotes trade with emerging markets worldwide by supporting the flow of
goods and services to and from developing countries. Through GTFP,
IFC provides coverage of bank risk in emerging markets, allowing recipients
to expand their trade finance transactions within an extensive network
of countries and banks and to enhance their trade finance coverage.
Jyrki Koskelo, Director of IFC’s Global
Financial Markets Department, said, “IFC has increased the trade finance
program to $1 billion in order to expand global coverage particularly to
frontier countries like Yemen, which is strategically important to IFC.
We are delighted to have Saba Islamic Bank in the program. More
importantly, the transaction is a milestone as it marks the first engagement
of IFC in the financial sector in Yemen. ”
Skaik Hameed Alahmer, Saba Islamic Bank’s
Chairman said, “We are happy to join the Global Trade Finance Program
as the first issuing bank in Yemen. This shows IFC’s strong
support to Saba Islamic Bank.”
Michael Essex, IFC’s Director for the
Middle East and North Africa, said, “We are very pleased to welcome Saba
Islamic Bank as the first Yemeni issuing bank in the program. Its
participation will expand the bank’s network of correspondent banks, hence,
open new markets and increase business opportunities for its corporate
and SME clients.”
About Saba Islamic Bank
Established in 1997, Saba Islamic Bank
is the second largest Islamic Bank in Yemen with total assets of $345 million
as of year-end 2005. Its activities include providing financing,
investment and banking services in conformity with Sharia law as well as
the regulations of the Central Bank of Yemen. The bank has expanded
its geographical coverage with thirteen branches in the cities of Sana’a,
Aden, Hodeidah, Taiz, Mukalla, Dhamar, Amran and Say’oun as well as a
regional branch in Djibouti, which is the first Yemeni bank in the country.
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.