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Abraaj: Supporting entrepreneurs and small businesses in the Middle East |
Site: Middle East and North Africa (MENA)
Sector: SME lending
Challenge: Small and medium-sized enterprises (SMEs) account for a large portion of jobs in the Middle East North Africa and their success can contribute to economic stability in the region. But they often struggle to access capital.
Solution: In 2012, OPIC signed a commitment of up to $150 million with the private equity group Abraaj Capital to support lending to entrepreneurs and SMEs in the region through the Riyada Enterprise Development Growth Capital Fund (RED), which will provide financing in amounts as small as $600,000 to businesses in the healthcare, education, financial services and technology sectors.
Impact: In addition to providing needed capital, RED will introduce more advanced business practices such as corporate governance and advanced technology to its SME portfolio companies.
This project was profiled in 2013
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