“We are delighted to have IFC as a shareholder and partner”, Atif Bajwa, Chief Executive Officer of Bank Alfalah. “We look forward to developing a long term strategic collaboration which will strengthen the Bank’s ability to provide a wider range of services and better access to finance, and create opportunities for economic growth in the country. This new foreign investment will also contribute significantly to attracting more investors to Pakistan”.

As part of the partnership, IFC has already provided Bank Alfalah with a comprehensive advisory package to implement its SME banking program. SMEs account for about 90 percent of private enterprises in Pakistan’s formal industrial sectors and employ over 70 percent of the country’s labor force.

The investment fits with IFC’s strategy in the Middle East and North Africa to support Gulf companies’ expansion into emerging markets. IFC support is also expected to help boost investor confidence in Pakistan’s banking sector.

"A strong financial sector is the backbone of any economy," said Dimitris Tsitsiragos, IFC Vice President for Global Client Services. "This investment will help support Pakistan’s financial sector and demonstrate its long-term potential. It will also give smaller businesses better access to capital, allowing them to unlock their potential and create much-needed jobs.”

The agreement was signed by H.E. Sheikh Nahyan Bin Mubarak Al Nahyan, representing the Abu Dhabi Group. IFC and Bank Alfalah, majority owned by the Abu Dhabi Group, are long-term partners. IFC provides trade finance guarantees to support the bank’s clients as they access international markets. IFC is also working on other projects with the Abu Dhabi Group, one of the largest business conglomerates in the region.