As per the 2009 Arab Microfinance Analysis and Benchmarking Report, the microfinance sector continues to develop in Arab countries in terms of infrastructure and operations, in spite of worldwide economic crisis. Based on data from 54 microfinance institutions in 10 Arab countries and trend data from 35 MFIs which covered the period from 2006 to 2008, the report stated that the region recorded the highest return on assets in the world, with lowest total expense ratio and financial avenue ratio.
As compared to other regions in the world, the second highest median was recorded in Arab microfinance in terms of outreach, just next to Asia. Arab region came second globally in terms of GLP growth. In 2008, Egypt and Morocco continue to govern the microfinance sector.
Though at regulation level, the Arab microfinance sector still continues to face several challenges. For strengthening their activities, MFI will need strong governance, internal credit policies and controls and suitable MIS.
Place your comment