Table of Contents

Clause Page #
Speech of the Chairman 3
Speech of the Chief Executive Officer 5
Main Indicators for the Bank in 2009 – 2010 6
Economic and Social Environment in Yemen 13
Operational Activities for 2010 14
Productivity 15
Saving Product 21
Outreach 23
Takaful (Islamic Insurance) 25
Capacity Building & Development 27
Local & International Partnerships 32
Financial Controlling Environment 37
AMB Achievements and Awards in 2010 40
Success Stories 41

1
 List of Tables

# Table Table Page #

1 Main Indicators for the Bank in 2009 – 2010 6
2 Social Performance Indicators for the Bank in 2009 – 2010 7
3 Names of Shareholders from the Private Sector 11
4 Members of the Bank's Board of Directors 11
5 Key Events in the Bank's History 12
6 Number and Amount of Loan Applications in 2009 and 2010 15
7 Value and Number of Disbursed Loans in 2009 and 2010 16
8 Number and Volume of Active Loan Portfolio for 2009 and 2010 17
9 AMB Penetration Rate in the Yemeni Microfinance Market 20
10 Volume of Savings Portfolio in 2009 – 2010 22
11 No. of Clients served, Branches and Staff in 2009 and 2010 24
12 Branches launched in 2009 and 2010 24
13 Insurance Cases Compensated in 2010 26
14 The Number and Portfolio Volume of Investment Funds in 2010 28
15 Key Manuals and Systems Developed in 2010 29
16 Key Trainings Attended by AMB Staff in 2010 31
17 Donor Organizations Supported AMB 34
18 Technical Assistance Services Offered by the Bank (AMB) 36
19 Internal Audit Dept activities in 2010 38
20 Key Results of Inspection Report Conducted by CBY in 2010 39

List of Figures

# Figure Figure Page #

1,2 Value and Number of Applications for 2009 and 2010. 15
3,4 Number and Value of Disbursed Loan in 2009 and 2010. 16
5,6 Volume of Active Loan Portfolio for 2009 and 2010 17
7 Growth of Active Clients in 2010 18
8 Growth of Outstanding Portfolio 2010 18
9 Growth of Women loans in 2010 19
10 Active Loan Distribution Per Sector in 2010 19
11 Ceilings of Loan Disbursed in 2010 20
12 Market Share of AMB in 2010 20
13,14 Volume of Savings Portfolio for 2009 – 2010 22
15,16,17 Number of Clients, Branches and Staff in 2009 and 2010 24

2
 Speech of the Chairman
On behalf of my co-members of the Board of Directors, i have
the pleasure to present to you the second issue of the Al-Amal
Microfinance Bank’s Annual Report for the fiscal year 2010.

Thanks to the efforts exerted, AMB has become an outstanding

economic edifice with a good reputation at the national,
regional and international levels. Since its establishment and
the launch of its business in early 2009, the bank has worked
hard on developing Islamic-accepted financial products and
services to a large portion of Yemeni society, which meet their
various financial needs in a way contributing to boosting the
national economy and coping with developments and changes
in the microfinance sector and the local and regional economic
situation. The year 2010 represented a new stage of hard work
and commitment to continued success and superiority.

In 2010, the bank worked on achieving economic indicators

that primarily helped promote its competitive status and market
share, as well as improve services offered to clients, which is
why the bank occupied the top place in the list of microfinance
institutions, though new it is.

We and the bank’s Executive Management have done our best

to implement those policies and regulations, approved by the
Board of Directors, which aim to develop the bank’s human
resources and business, and achieve its objectives through
training and development of performance management and
evaluation policies. The bank also recruited qualified staff in
many positions in line with its expansion plan.

Finally, I would like to thank the Executive Management

and all staff for their great efforts, dedication and tirelessness
at work, which helped the bank occupy a prestigious status
in the microfinance sector in Yemen and the Arab World. I
herein confirm that through the staff’s ceaseless efforts and
work with one-team spirit, the bank’s ambitious strategic plan
will be achieved, and we will be able to accomplish further
achievements of benefit to the targeted groups in all the rural
and urban areas of Yemen, as well as make out of the bank an
Mr.Omar Abdulrahman
Bajarash outstanding example in the microfinance industry.

3
4
 Speech of the Chief Executive Officer
I have the pleasure to present to you the second issue of AMB’s
Annual Report for 2010. Thanks to God, the tireless efforts of
the bank’s staff, and the support from the Board of Directors,
shareholders, the government and international organizations,
AMB accomplished a number of achievements throughout
the second operational year 2010 despite the difficulties and
challenges facing the microfinance sector in Yemen.

The bank continued to develop policies and bylaws regulating

its activities, and worked on implementing the business plan
for 2010 [98.22 percent of the plan had been implemented].
This is why the bank occupied the top place in the list of
microfinance institutions in Yemen in terms of the number of
clients and the growth rate. The bank worked on diversifying
its financial services and products, thus becoming the largest
provider of financial services to small and micro entrepreneurs .
It was also considered one of the most rapidly-growing financial
institutions in the Arab World.

Thanks to staff’s faith in their social and moral commitment

to achieving the social and economic objectives of the bank,
and the effective contribution to improving living conditions of
Yemeni families, the bank expanded its outreach of the targeted
groups to include women and youth, who are greatly deprived
of financial services in Yemeni society.

In 2010, the bank won two valuable awards in the microfinance

industry at both the Arab and international levels. The first
of which is the Award of Creativity & Innovation, sponsored
and funded by Grameen Jameel Foundation, for the best
Arab institution offering financial services with scientific
and effective methodologies. The second is the Award of
Islamic Microfinance Challenges, which AMB could achieve
among 132 financial institutions from more than 42 countries
worldwide.

At the international level, AMB established great relations

with international organizations operating in the field of
development. Thanks to these relations, the bank received
technical and financial support from the most ancient houses
with international experience for strengthening the bank’s
institutional structure, and its technical and financial capacities,
as well as increasing its effectiveness to comply with the best
international Microfinance practices.

In conclusion, I express my deep gratitude for all those who

helped the bank obtain this international prestigious status,
wishing the bank continued support to achieve its ambitious
Mr.Mohammed Saleh Al-Lai plan for 2011 in a way making the vision of providing financial
services to all Yemenis possible.

5
 Table (1) Shows Key Indicators for the Bank in 2009 – 2010

Growth
Clause 2009 2010
Ratio

Outreach

No. of Branches 6 11 83%

No. of Staff 92 130 41%

Balance Sheet

Total Assets (Million YER) 1,267 3,359 165 %

Fixed Assets – Net (Million YER) 46 52 13%

Outstanding Portfolio (Million YER) 165 556 237%

Total Deposits (Million YER) 34 1,097 3,126%

Long Term Loans Value (Million YER) 40 180 350%

Productivity

Number of Disbursed Loans 5,656 17,565 211%

Disbursed Loan portfolio (Million YER) 284 885 211%

No. of Active Borrowers 4,787 14,722 % 208

Outstanding Loans per Loan Officer 106 220 108%

Number of Saving Accounts 4,756 18,594 291%

Number of Women Savers 1,730 8,492 391%

Number of Child Savers 1,667 7,714 362%

Profitability and Sustainability

Operating Self -Sustainability 27% 53% 96%

Financial Self - Sustainability 12% 30% 150%

6
 Table (2) Shows Social Performance Indicators for the Bank in 2009 – 2010

Growth
Clause 2009 2010
Ratio

Number 2,685 9,550 256%

Active Women Borrowers Percentage out of Total
56% 65% 16%
Borrowers

Number 1,244 7,561 101%

Active Youth Borrowers Ratio out of Total Bor-
26% 51% 96 %
rowers

YER 50,580 50,454 0%

Average of Loan Disbursed
USD 253 236 .....

YER 34,451 37,767 9.6%

Average Outstanding Loan
USD 172 176 3%

No. of Job Opportunities

Number 2,840 9,931 249%
Created *

No. of Beneficiaries ** Number 28,280 87,825 211%

* Every $500 creates 1.2 job opportunities.

** The average number of Household Members is 5 people.

7
 Out of 130 Microfinance Institutions and Banks
from 43 Countries in the World,
Al-Amal Microfinance Bank wins the Award of
Islamic Microfinance Challenges 2010
CGAP, Deutsche Bank, Grameen-Jameel Pan Arab
Microfinance, and Islamic Development Bank partnered
to sponsor this global competition in order to uncover
viable business models that provide microfinance
products compatible with Shari’ah. The value of the award
is $104,000 and a technical assistance for strengthening
capacity of the winning institution in offering financial
services, also a certification of being a pioneer in offering
Islamic financial services is awarded to the winning
institution.
Al-Amal Microfinance Bank (AMB)
AMB was established in association with the Yemeni
Government, Social Fund for Development (SFD),
AGFUND, and the Yemeni and Saudi private sectors.
AMB is regulated, monitored and supervised by the
Central Bank of Yemen. It offers financial services in line
with Islamic principles, so it is highly appreciated by the
government and international organizations operating in
the field of development in Yemen.
The bank aims to offer comprehensive and sustainable
financial services (loans, savings, transfers, insurance,
etc) to meet needs of limited-income clients, expand its
services to cover all the rural and urban areas of Yemen
by opening branch offices and building partnership with
various institutions. It also aims to be a leading and
sustainable financial institution.
Two and a half years of excellence
In two and a half years, the Bank reached various successes
that helped it be on the top of the microfinance industry
at the national level. The Bank became a key provider of
microfinance skills and knowledge at both the Arab and
international levels. Below are some of the key indicators
of excellence:
- Won the Award of Creativity & Innovation
2010 at the Arab level, this competition was
sponsored by Grameen Jameel Foundation.
- Selected during the Fourth International
Conference for Funding Youth, held in
Washington in September 2010, as the second
best experience worldwide in funding and
supporting Youth.
- Disbursed more than 25,000 loans with a
portfolio of $6 million.
- Currently offers services to more than 35,000
clients.
- Holds 22% of the Microfinance market share
in Yemen.
- Has over 20,000 voluntary savers.
- Women represent 62% of the total number of
borrowers.
AMB… Bank of Unbanked
8
We call for supporting Yemeni handcraft associations and
productive families via Al-Amal Bank. Today, we have
Al-Amal Microfinance Bank, which is, as I understood,
one of the most successful banks. The government has to
support this bank
His Excellency Ali Abdullah Saleh
President of the Republic of Yemen
The idea of establishing Al-Amal Bank is the first in the
Arab World. The Bank has achieved its own objectives
with support from the political leadership and government
in brotherly Yemen. We currently work on generalizing
this example in the Arab states."
H.H. Prince Talal Bin Abdulaziz
Chairman of AGFUND
“Establishing Al-Amal Microfinance Bank reflects
the serious moves made by the government to reduce
unemployment and alleviate poverty. In spite of its young
age, the Bank has achieved a high record in supporting
small and micro entrepreneurs .”
Mr. Abdulkarim Al-Arhabi
Deputy Prime Minister, Minister of Planning and International Cooperation
“Deep gratitude to al-Amal Bank that granted hope for
many.”
H.H. Sheikha Mauza bint Nasser al-Musnad
Wife of H.H. Prince of the State of Qatar
"Al-Amal Bank brings hope for many women and Youth.
We will realize its impact on this vital social group within
the coming years."
Eng. Abdullah Ahmad Buqshan
Member of the Bank’s General Assembly
“What surprised me is how Al-Amal Microfinance
Bank identifies the needs of its clients and offers Islamic
financial services accepted by the conservative people of
Yemen.”
Dr. Mahmoud Mohyiddin
Executive Director of World Bank
“What the bank offers is a new service. It will have a
positive impact on improving the economic and social
situation of limited-income people in Yemen.”
Derck Nible
German Minister of Development & International Corporation
“It was my pleasure visiting Al-Amal Microfinance Bank
and hearing about your initiative and constant success. We
at IFAD look forward to working with you and building
good relations with real outcomes in the future.”
Bokiko Amora
Deputy Head of IFAD
 About the Bank

Al-Amal Microfinance Bank was established

by Yemeni Law No. 23 of 2002 as the first
Microfinance Bank in the Middle East and
North Africa. Its establishment came to
crown efforts of the Yemeni Government,
represented by SFD, and Arab Gulf Program
for Development (AGFUND), as also
contribution and support from both Yemeni
and Saudi private sectors.
In January 2009, the Bank started its actual
operations on the base of five years business
plan (2009-2013).
The Bank is a non-profit organization seeking
to offer sustainable financial services to
limited and low income families in Yemen,
particularly small and micro entrepreneurs
through the provision of inclusive financial
services (funding, saving, insurance,
transfers, etc).

Vision
To offer inclusive financial services for all
Yemenis.

Mission
To improve the economic and social
conditions of the Yemeni low/limited income
households, particularly, the micro and small
entrepreneurs of Yemen, through the direct
and indirect provision of exemplary financial
services that suit their needs and to become
a pioneer and sustainable microfinance
institution.

Objectives:

1. To Provide diversified financial services satisfying the target group's needs and expectations.
2. To Expand to all the Yemeni territories (rural and urban) through new branches and through
partnership with other local institutions.
3. To be a sustainable financial institution, with qualified and efficient staff, and equipped with
modern systems able to attract fund.

9
 Shareholders

When established, the Bank had an authorized capital of YER 2 billion (equivalent to US$9.3
million). Until the end of 2010, the paid-in capital mounted up to YER1.53 million (equivalent
to US$7.160 million).

The shareholders equity comes as follows:

45% of the shares for Yemeni Government, represented by SFD.
35% of the shares for AGFUND.
20% of the shares for Yemeni and Saudi private sectors

1) Yemeni Government – SFD

SFD was established by law No. 10 of 1997 as one of the social safety tools to alleviate side effects
resulting from the government's economic reform program that might have a negative impact on
vulnerable groups in society, particularly the poor. It is based in Sana'a and has branch offices in the
main cities of the Republic of Yemen.

SFD is a financially and administratively autonomous organization, run and supervised by a board
of directors, chaired by Prime Minister. Its membership includes representatives for the government,
NGOs and the private sector. It has many braches in several cities and its headquarter is based in
Sana 'a.

2) AGFUND

The Arab Gulf Program for Development (AGFUND) is a regional organization based in Riyadh,
Saudi Arabia. AGFUND was established in 1980 upon the initiative of His Royal Highness, Prince
Talal Bin Abdul Aziz Al Saud with the support of leaders of the Gulf Cooperation Council Countries
: United Arab Emirates, Kingdom of Bahrain, Kingdom of Saudi Arabia, State of Qatar, Sultanate
of Oman and the State of Kuwait.
AGFUND works mainly in the field of development and growth at the international level through
an effective partnership with the United Nations Organization, regional and national development
organizations, public institutions, the private sector, as well as organizations of the civil society.

3) Private Sector

The private sector is represented by commercial institutions operating in Yemen, companies or com-
mercial banks. It also includes Yemeni and Saudi businessmen and has a total of 13 shareholders.

10
 Table( 3 ) Shows Names of Shareholders from the Private Sector

Name of shareholder Job title Name of shareholder Job title

Sheikh Abdullah Ahmad General Assembly
Buqshan Member
Sheikh Abdullah General Assembly
BaHamdan Member
General Assembly
Hayel Saeed Group
Member
Yemen Commercial General Assembly
Bank Member
General Assembly
National Bank of Yemen
Member
General Assembly
Abu Bakr Omar BaZara'a
Member
General Assembly
Watani Yemen *
Member
Omar Abdurrahman General Assembly
BaJerish Member
General Assembly
Yemen & Kuwait Bank
Member
General Assembly
Yemen and Gulf Bank
Member
Tawfiq Mohammed al- General Assembly
Khamri Member
National Insurance General Assembly
Company Member
General Assembly
Adhban Company
Member

* Watani Bank has declared bankruptcy and it is under liquidation.

Table (4) Shows Members of the Bank's Board of Directors

No. Name Representing Job Title

1 Omar Abdurrahman BaJerish Private Sector Chairman
2 Nasser Bakr al-Qahtani AGFUND Vice Chairman
3 Jabreen al-Jabri AGFUND Member
4 Bassim Khanfar AGFUND Member
5 Mohamed Abdu Saeed Private Sector Member
6 Mohamed al-Moayyad Government Member
7 Jalila Shujaa Addin Government Member
8 Wisam Qaed Government Member
9 Osama al-Shami Government Member

11
 Table (5) Shows Key Events in the Bank's History

Date Event

H.H. Prince Talal Bin Abdulaziz Al Saud declares an initiative for

20 March 1996
establishing banks of the poor.

Issuance of Republican Decree by Law No. 23 of 2002 on the establish-

20 July 2002
ment of AMB.

Vacancy announcement for the position of the Executive Director in the

11 July 2007
websites of SFD and Sanabel Microfinance Network.

15 July 2007 Announcing a contest for designing the AMB's logo.

Issuance of the working license under Prime Minister's Decree No. 332
15 August 2007
of 2007.

1 January 2008 Appointing Mr. Mohammed Saleh Al-Lai as AMB Executive Director.

May – June 2008 Developing the five-year strategic plan (2009 – 2013).

Opening the AMB's first branch, Baghdad St. Branch, Capital Secre-
24 August 2008
tariat.

3 September 2008 Disbursing the first loan.

Holding the first meeting fro BoD members and approving manuals and
4 February
policies.

6 May 2009 Reaching the first 1,000 active clients in the bank.

January 2010 Issuance of CBY's first annual inspection report on AMB.

Issuance of financial audited reports for 2008 and 2009 by Delloite and
March 2010
Dutch Company.

AMB wins the Award of Creativity & Innovation sponsored by

May 2010
Grameen Jameel Foundation.

July 2010 AMB reaches a total of 10,000 active borrowers.

December 2010 AMB wins Award of Islamic Microfinance Challenges 2010.

12
 Economic Environment in Yemen

Between 2000 and 2010, Yemen achieved a tangible progress in the implementation of economic,
legislative and administrative reforms. This helped in making good steps toward comprehensive
development, however, the country still has poor indicators at the economic level. The average
economic growth rate is estimated at 7%, leading to decline of the average per capital income.

Despite the slight improvement of the entire economic policy resulting from the implementation
of economic, administrative and financial reform programs, some problems arose, primarily the
increase of poverty and unemployment rates, inflation, increased budget deficits and the depletion
of oil and water which are the two key resources for economic growth.
In addition to that, the rapid population growth is one of the main problems in which Yemen’s
population is estimated with 23.6 million souls, 47.6% of the population live below the poverty
line while nearly 73% of the country’s population live in rural areas.

In general, Yemeni financial sector is undeveloped since the financial services are available for a
limited number of people. More surprisingly, all banks have only 200 branches around Yemen till
the end of 2010 and most of these branches are based in the main cities which means that small
and micro entrepreneurs don’t benefit from these financial services. In spite of that, most people
of urban and rural areas in particular don’t have access to loan and saving services and instead
they depend on informal arrangements, like borrowing from families and friends to meet their
credit needs.

Many studies on small enterprises in Yemen reveal that returns from these small businesses are
the main source of income for the majority of families, and 22% of these businesses are located in
families’ houses. More than half of these enterprises use local raw materials while the majority of
them are classified as part of the informal sector. These small and micro enterprises play a positive
role in improving the economic conditions of their owners and enable them meet family basic
needs like food, clothes, educating their children and paying water and electricity bills.

Microfinance is still a new sector for Yemen and it is concerned with creating opportunities for
small and micro entrepreneurs to get funds that help them establish lucrative businesses or expand
their existing ones for the sake of improving their income, creating new job opportunities and
stimulating markets through recycling of funds. This is one of the internationally used means to
alleviate poverty and improve living standards of poor families and it is highly appreciated by
international organizations operating in the field of development in Yemen.

Microfinance Sector in Yemen is still facing numerous challenges that hinder its expansion in
spite of the high poverty rate in the country which is considered one of the motives for expanding
activities of Microfinance institutions and programs. This is attributable to the lack of awareness
about the importance of this industry to the economic and social development. The targeted groups
are unaware of the microfinance policies due to the higher illiteracy rate and the lack of adequate
legislations for Microfinance institutions and programs.

13
 Operational Activities for 2010

Productivity

14
1.1 Loan Applications

In 2010, the Bank received 21, 221 loan applications with a portfolio of YER1.4 Billion (equivalent
to US$6.5 M) with growth rate of 182%to loan application received in 2009.

Table ( 6 ) Shows Number and Amount of Loan Applications in 2009 and 2010

Growth
Clause 2009 2010
Rate

No. of Applications 7,522 21,221 182%

Amount of Applications (YER) 513,327,000 1,393,794,840 172%

Amount of Applications (USD) 2,566,635 6,513,060 154%

The Two Figures (1, 2) Show the Value and Number of Applications for 2009 and 2010

Number of loan Application Amount of Loan Application (YER)

1.2 Disbursed Loans

In 2010, the Bank disbursed 17,566 loans, worth YER 885 Million (equivalent to US$4.140 M)
with an average balance of YER50,438 per loan (equivalent to US$236). Compared to 2009, the
bank achieved a considerable growth rate in 2010 in the number and amount of disbursed loans
reaching 300%, which is a big rate, compared to the growth rate of other Microfinance institutions
and programs operating in Yemen.

15
 Table ( 7 ) Shows the Value and Number of Disbursed Loans in 2009 and 2010

2009 2010
Growth
Clause
% of % of Rate*
Planned Actual Planned Actual
completion completion

No. of Disbursed Loans 6,112 5,656 93% 20,000 17,566 88% 300%

Loans Disbursed
235 284 121% 1,000 885 89% 299%
Portfolio (Million YER)

Loans Disbursed
1.18 1.3 110% 4.67 4.14 89% ----
Portfolio (Million USD)

Average of Loan
38,449 50,150 130% 50,000 50,438 100% -----
Disbursed (YER)

Average of Loan
192 250 130% 234 236 100% -----
Disbursed (USD)

* The growth rate calculation was based on the total number of loans
disbursed in 2009 and 2010 (accumulative).

Figures (3, 4) Show the Number and Value of Disbursed Loan in 2009 and 2010

Loan Disbursed Portfolio (Million YER) Number of Disbursed Loans

Actual Planned Actual Planned

16
1.3 Active Loans

The number of active borrowers increased from 4,787 in 2009 to 14,722 active loan by the end
of 2010 with a growth rate estimated at 208%. The achievement of the business plan in 2010 in
terms of active loans was 98,22% and the outstanding loan portfolio for the same period reached
YER556 million (equivalent to US$2.6 million) with an average outstanding loan of YER37,767
(equivalent to US$176).

Table ( 8 ) Shows Number and Volume of Active Loan Portfolio for 2009 and 2010

2009 2010
Growth
Clause
% of % of Rate
Planned Actual Planned Actual
completion completion

Number of Active loans 4,432 4,787 108% 15,000 14,722 98% 208%

Outstanding Portfolio
119 165 139% 500 556 111% 237%
(Million YER)

Outstanding Portfolio
0.60 0.83 138% 2.3 2.6 113% -----
(Million USD)

Average Active Loan

26,850 34,451 128% 33,333 37,767 113% -----
Balance (YER)

Average Active Loan

134 172 128% 156 176 119% ----
Balance (USD$)

Figures (5, 6) Show Volume of Active Loan Portfolio for 2009 and 2010

Outstanding Portfolio (Million YER) Number of Active Loans

Actual Planned Actual Planned

17
1.3.1 Outstanding Portfolio Growth in 2010
1.3.1.1 Active Client Growth

The figure below shows the rapidly increasing growth of the number of active clients from January
to December 2010. The number of active clients increased from 4,787 in January 2010 to 14,722at
the end of 2010, so the increase in 2010 is about 9,935 clients with growth rate of 208%.

Figure ( 7 ): Growth of Active Clients in 2010

Growth of Active Loans 2010

1.3.1.2 Active Loan Portfolio Growth

The Figure below shows growth of active loan portfolio in 2010, in parallel with the number of
clients. It grew from YER165 Million in January 2010 to YER556.5 Million in December 2010 at
an increase of YER 391.5 million and a growth rate of 237%.

Figure (8) Shows Growth of Outstanding Portfolio 2010

Growth of Outstanding Portfolio 2010

18
1.3.1.3 Growth of Women’s Loans

Women represent a large percentage of the bank-targeted group constituting 62% of the total
number of active borrowers in 2010. Observing growth of women loans during 2010, we find that
the number of women borrowers grew from 2,685 in January 2010 to 9,063 in December 2010, at
an increase of 6,378 women borrowers throughout 2010 and a growth rate of 237%.

Figure (9) Shows the Growth of Women Loans in 2010

Growth of Women Loans 2010

1.3.1.4 Active loan classification per Figure ( 10 ) Shows Active Loan

sector Distribution Per Sector in 2010

AMB is funding commercial, productive Active Clients per Sector

and services activities,In 2010 AMB
started funding consuming activities
because of great demand for this product
which is still of relation to the mission
of the bank. Commercial and service
activities constitute 86% of the total
active clients of the bank in 2010 while
productive and consuming activities
represent 7% each in the same year. Product Service-commercial Consumption

19
 Figure ( 11 ) Shows the Ceilings of
1.3.1.5 Loans Disbursed per Amount Loan Disbursed in 2010

Disbursed Amount ceilings

Having a glance at the figure below,
it has been made clear that 94% of the
total disbursed loan portfolio in 2010 are
between US$ 50-500, which means that
the bank targets the poorest of the poor
and 6% of the total portfolio for loans
ranging between 500-2,500$ while loans
more than 2,500$ represent less than 1%.

Figure (12) Shows the Bank Penetration Rate

1.3.1.6 Market Share in the Yemeni Microfinance Market.

Over the past two years, the bank was Market Share for AMB During 2010
able to prevail 22% Market share of the
Yemeni Microfinance Sector.

AMB Others

Table (9) Shows the Bank Penetration Rate in the Yemeni Microfinance Market.

Clause 2009 2010

Active Loans of Yemeni MFIs 40,342 66,419
New Loans in the Sector 6,071 26,077
Active Loans of AMB 4,787 14,722
AMB’s share in the Microfinance Sector 11.80% 22%

20
Saving Product

21
The Bank hit a high record in the saving accounts in which the number of saving accounts increased
from 4,756 at the end of 2009 to 18, 594 at the end of 2010 with a portfolio of YER1,10 billion
(equivalent to US$5.12 million) at an annual growth rate of 3,126% in comparison to 2009. The
increase in deposits are attributable to the launch of investment funds product which is the first
of its kind in the international Microfinance Sector. The balance of these funds reached YER1.04
billion in 2010. In the same context, the number of women and child savers increased to 8,492 and
7,714 by the end of 2010 at a growth rate of 391% and 362% respectively.
More importantly, AMB has became a member of Deposit Insurance Cooperation which is recently
established and it insures for all banks and with maximum amount of 2 YER Million. This means
that 99% of clients' savings are insured.

Table ( 10 ): Volume of Savings Portfolio in 2009 – 2010

Growth
Clause 2009 2010
Rate

No. of Savers 4,756 18,594 291%

No. of Women Savers 1,730 8,492 391%

No. of Child Savers 1,667 7,714 362%

Investment Funds (YER million) 0 1,048 ---

YER Million 34 1,097 3,126%

Saving Portfolio
USD$ Million 0.17 5.12 --

Figures (13, 14) Show the Volume of Savings Portfolio for 2009 – 2010

Saving Portfolio in 2009-2010 No of Savers in 2009-2010

All Savers Women Child

22
Outreach

23
During 2009 and 2010, the Bank was able to achieve a very remarkable performance and market
share in Microfinance market. In spite of its young age, it has served more than 33,000 clients until
the end of 2010, with an increase of 22,873 borrowers and savers, compared to 2009. The growth
rate comes at 219%, noting that saving service is voluntary and free for borrowers in the bank.
The bank witnessed a huge expansion in the year 2010 in which five new branches were opened
in the two new targeted governorates of Aden and Hodeidah, so the Bank becomes offering its
services through 11 branches spread around 6 main governorates by the end of 2010.
In terms of staff, the bank hired a large number of staff from various specializations in which the
number of staff increased from 92 in 2009 to 130 staff member in 2010 with an increase of 38
employees.
Table ( 11 ) No. of Clients Served, Branches and Staff in 2009 and 2010

Clause 2009 2010 Growth

rate

No. of clients served (Borrowers and Savers) 10,443 33,316 219%

No. of Branches 6 11 83%

No. of Staff Members 92 130 41%

Figures (15, 16, 17) Show the Number of Clients, Branches and Staff in 2009 and 2010

No of AMB Staff in No of AMB’ Branches in No of AMB’ Branches in

2009-2010 2009-2010 2009-2010

Table ( 12 ) Shows Branches launched in 2009 and 2010

2009 2010
Branch Name Governorate Branch Name Governorate
Baghdad Sana'a Dar Salm Sana’a
Al-Tahreer Sana'a Sheikh Othman Aden
Shuaob Sana'a Keraiter Aden
Shumailah Sana'a Taiz, 22 May Taiz
Taiz, 26 September Taiz Hodeidah Hodeidah
Ibb IBB

24
Takaful (Islamic Insurance)

25
The bank offers the Islamic insurance service to its clients in case of death, full disability. The
compensation of this insurance service in case of death is represented by repaying the outstanding
loan and the Murabaha charges for the client, as well as participating in his/her funeral and offering
a financial aid of YER20,000 (equivalent to $100) to the family of the deceased.
In 2010, AMB has witnessed some cases which is compensated from Takaful Fund for example :-

Table (13) Shows Takaful Cases Compensated by the Bank in 2010

Takaful Condolence
Client Name Case Case Description
Amount (YER) money (YER)
The client was compensated through repayment of
the outstanding loan along with Murabaha charges,
Abdulwahid Saleh
Death 113,750 20,000 which amounted up to YER113,750, plus another
Mattash YER20,000 disbursed by the bank as funeral march
expenses as per the (Takaful) manual.
The client was compensated through repayment of
the outstanding loan along with Murabaha charges,
Saud Abdu
Death 35,100 20,000 which amounted up to YER35,100, plus another
Mohammed YER20,000 disbursed by the bank as funeral march
expenses as per the (Takaful) manual.
The client was compensated through repayment of
the outstanding loan along with Murabaha charges,
Adel Saleh al-
Death 19,050 20,000 which amounted up to YER19,050, plus another
Dahbali YER20,000 disbursed by the bank as funeral
march expenses as per the (Takaful) manual.
The client was compensated through repayment of
the outstanding loan along with Murabaha charges,
Alyaa Nasser
Death 9,525 20,000 which amounted up to YER9,525, plus another
Mohammed YER20,000 disbursed by the bank as funeral march
expenses as per the (Takaful) manual.
The client was compensated through repayment of
the outstanding loan along with Murabaha charges,
Nabil Saleh al-
Death 59,500 20,000 which amounted up to YER59,500 plus another
Shuaibi YER20,000 disbured by the bank as funeral march
expenses as per the Takaful manual.

Case of Solidarity that has been compensated from the Takaful Fund

26
Capacity Building & Development

27
By observing the bank’s accomplishments over the past two years, it will be clearly noticed that
the great role played through the building and development processes had led to these achieve-
ments. As a result of this, the bank commits to follow the same approach as a key point for more
distinctive improvements. The areas of development in 2010 included products, policies, manuals,
and introducing new vacancies in the organizational structure. Below is a detailed description of
these achievements:

5.1 Product Development

As a commitment of the bank in offering diversified financial services which meet the demands of
its clients and are in line with Islamic legislation, the bank has developed the following products:

5.1.1 Investment Funds

Investment funds are one type of saving products targeting businessmen who have social
responsibility. This product is the first of its kind in the microfinance market under which deposits
are collected from clients and then invested by the bank in funding small enterprises (the main
business of AMB) according to the Islamic Legislation. By investing in this product, the investors
will achieve two objectives; helping in generating new opportunities in the market and getting a
profit as well (approximately similar to the market rates). The investment period in the fund is
three years and dividends will be distributed on an annual basis.
This product was launched in March 2010 at a workshop attended by Yemeni and Saudi
businessmen who were pleased with this product and contributed with more than YER1 billion in
these investment funds.

Table (14) Shows the Number and Portfolio Volume of Investment Funds in 2010

Clause Amount

No. of Investment funds 4

Amount of the Fund (YER) 250,000,000

Amount of the Fund (USD) 1,168,224

Total Amount of Investment funds (YER) 1,048,000,000

Total Amount of Investment funds (USD) 4,897,196

5.1.2. Housing Loans

Caring about meeting the needs of targeted groups, the bank developed the housing loan product
after conducting a study for understanding the size of demand and verifying that it is in line with
the bank's objectives. Through this product, the client can do the maintenance of his/her house and
improve his/her living conditions. The number of loans disbursed on this purpose is about 1,662
loans with amount of 85 YER Million equivalent to $400,000 in 2010.

5.1.3 Car Buy & Maintenance Loans

The bank developed the car loan product through which a client can take a loan to buy vehicles
which generate an income to their owners. This product was of great success and the number of
disbursed loans reached to 493 loan amounting to 35,055,000 YER equivalent to $ 170,000 in
2010.

28
2.5 Developing Manuals & Policies

The year 2010 witnessed a distinctive progress in the development of financial, administrative and
operational policies and systems, which helped the bank facilitate and accelerate a work environ-
ment complying with its moves to bring faster means for service delivery to clients and sustaining
their quality. The following table shows the key manuals and systems developed by some depart-
ments in 2010.

Table (15) Shows the Key Manuals and Systems Developed in 2010

Implementing
Description Manual’s name
Dept.
Developing the incentive scheme that complies with the
Incentive Scheme
bank’s future moves and staff’s expectations.
Operation
House Maintenance
Developing the Manuals of House Maintenance Product Dept.
Product & Car
and Car Purchase & Maintenance Product.
Purchase Product
Developing the costing Module, which is the first of its kind
Activity Based
in the Microfinance institutions around the Arab World, as
Costing method Financial Dept.
also developing charts of accounts and budget manuals which
(ABC)
comply with the best practice of Microfinance industry.
Investment Fund
Designing screens, reports and Investment Fund System.
System
Developing the electronic archiving system under which Electronic
all the bank documents become electronic. Archiving System IT Dept.
Installing and activating 2X application that led to accelerating System
transfer of data from and to branch offices in a good way. It installation
helped in overcoming communication-related problems. (2x Application )
Amending the HR Manual based on developments observed
by the bank such as the modification of job grades /levels Human Resources
HR Dept.
and the amendment of the salary matrix to comply with the Manual
current situations.
Conducting an analytical study on client withdrawal, and
coming up with outcomes and recommendations that were Development
Analytical Study
converted into action plans. In addition, product manuals Dept.
were reviewed.

5.3 Creating New Jobs in the Organizational Structure

Due to the rapid growth of its activities in 2010, the bank created some essential jobs to meet with
this growth, taking into account the future dimension. Below are some of the positions created in
2010:

1) Training & Technical Assistance Dept.

The Bank's management established Training & Technical Assistance Dept. to build capacities
of human resources in the next phase, given that staff training is a long-term human investment.
This Dept is in charge of providing staff with skills and knowledge on microfinance and other
relevant fields. Additionally, the bank intends to offer technical assistance and also financial and
administrative advices to local and regional Microfinance institutions.

29
2) Anti-Money Laundering & Compliance Unit

As part of its care about exercising the business according to the international standards, Central
Bank of Yemen (CBY) instructions, the 40 FATF Recommendations and the other Nine
recommendations from FATF as well, the bank has established Compliance and Anti-Money
Laundering Unit for ensuring the implementation of policies, laws and regulations and observing
how compliant they are with governmental and international laws. Moreover, this unit is considered
new for Microfinance institutions and AMB is one of the first Microfinance institutions to establish
this unit in the MENA region.

3) Internal Audit Dept.

To ensure application of policies and procedures, the bank established the Internal Audit Dept.
With funding from GTZ in 2009, this project was implemented by one of the best German
companies with long microfinance experience (AFC). As per the best Microfinance practices, the
bank developed an integrated manual on internal audit, trained the relevant staff and set up a
plan for auditing. Additionally, many screens in the MIS have been designed to meet inspection
requirements of this department.

5.4 Training & Development

Convinced that training and development are as important as financial investment, and as part of
its effort to provide staff with the necessary skills and knowledge on the various activities, the bank
established the Training & Technical Assistance Dept and implemented several training programs
[internal or external] as follows:

5.4.1 Internal Training

In 2010, the bank conducted training courses

for the staff and engaged them in other domestic
training programs. The most important of
these trainings is a workshop on Anti-Money
laundering and Combating Terrorism Financing,
undertaken by experts from Frankfurt School of
Finance & Management and funded by AFD.
More than 30 staff members from the head-office
and branches participated in the workshop.

Anti-Money Laundering Workshop at AMB Head-

office conducted by Frankfurt School

30
 Table (16) Shows Some of the Key Trainings Attended by AMB Staff in 2010:

Training course / program

Anti-Money Laundering and Combating Skills of dealing with clients' objections

Terrorism Financing

Accounting in Microfinance Developing financial Statements as per SEEB

Templates.

Feasibility Study Promotion & Marketing

Strategic Marketing Transparency

5.4.2 Training & Client Awarding

In 2010, the bank signed a Memorandum of

Understanding with Silatech a Qatari institution
that supports Youth in the Middle East and SFD-
affiliated SMEPS with the aim of arranging
training programs for youth who have projects
to help them develop their marketing tools,
administrative and financial skills and run
their projects successfully. These programs are
provided to clients for reduced fees estimated
at US$30 while the remaining amount (US$90)
is paid by SMEPS. Many clients were sent by
the bank to attend these trainings. Also, the
bank awarded many clients who represent
success stories after they obtained funding from Awarding one of AMB’s clients during the meeting
AMB and used in developing their projects. Of of Ministers of labour of GCC with the presence of
those clients who received honors in 2010 is Mr. Abdul Rahman Al-Attiyah – GCC Secretary,
"Abdurrahman al-Qadhi", who was awarded in held in Kuwait in 2010.
Kuwait by Secretary-General of GCC and social
affairs ministers of GCC states.

5.4.3 Exploratory Visits

The bank organized an exploratory visit to the

Indonesian People's Bank [RAKYAT Bank], one
of the biggest Microfinance banks worldwide.
Five staff of AMB senior management, Operation
Dept. Manager, Research & Development Dept.
Manager, 2 branch managers and International
Communication Officer participated in this
visit. They got to know about RAKYAT Bank's
experience in Microfinance particularly the
outreach in the rural and urban areas. The visit
had a positive impact on all the services offered AMB staff in an exploratory visit to RAKYAT
by AMB. Bank in July 2010

31
 Local & International Partnerships

32
6.1 Local Partnerships

To expand outreach of its financial services to a maximum number of targeted clients, the bank
strengthened its local partnerships with governmental institutions and established new partnerships
with the private sector.
Of the key partnerships developed is a partnership with “Public Postal and Saving Authority”
and “Social Welfare Fund (SWF)”. As a result of this partnership, more than 6,000 of the SWF
beneficiaries, whose salaries are transferred via the bank, received loans. A large number of these
beneficiaries turned to regularly deal with the bank through saving accounts.
Other new agreements were signed with governmental agencies such as Public Corporation
for Electricity, Public Corporation for Telecommunications and Ministry of Public Health &
Population. These agreements aim to offer loans to staff of these governmental agencies to develop
their enterprises and improve their living conditions.

6.2 International Partnerships

6.2.1 Technical Assistance & Agreements Signed

The year 2010 witnessed great development of international relations with international
organizations operating in the field of Microfinance. The purpose of this is to strengthen the
AMB’s internal capacities and fund its activities, as well as make use of the experience of other
senior microfinance institutions.

Partnership Conference between Silatech & AMB During H.H Sheikha Mozah Visit to Yemen in May 2010

33
 Table (17) Shows Donor Organizations Supported AMB.

Donor Implementing Type of Type of Agreements

Assistance Value Targeted Dept. Condition
organization Organization Assistance Signed
Financial Dept CompletedOffering technical
assistance to
Financial Dept.
and Research &
In cooperation with MEDA Technical $166,000 Research &
Underway Development Dept.
Marketing Dept. in association with
SFD that contributed
31% of the grant
Establishing Developing Anti-
Frankfurt 45,000
Technical Compliance Unit Completed Money Laundering
School Euros
& AML/CFT procedures
Market study for Not A technical
150,000 rural areas with the implemented assistance agreement
CIDR Technical
Euros purpose of designing yet on conducting market
suitable products study of rural areas.
A long-term funding
800,000 funding loan Under
AFD Loan agreement in local
Euros portfolio Negotiation
currency
Establishing SIF, An agreement on training
and developing AMB staff and clients
Silatech Financial $200,000 Completed
Youth financial through cooperation with
services. Silatech and SMEPS
supporting Youth Financial
Silatech Loan $1,000,000 Completed
fund Agreement
- Reviewing products.
-Developing internal Technical
500,000
GFA Technical audit Dept, IT Dept, Risk Underway Assistance
Euros
Management, Treasury Agreement
Management.
Sub-ordinated debt till
2,700,000 Under Equity participation
Financial AMB approves it as
Euros Negotiation agreement
Equity participation
Developing Internal Technical
200,000
AFC Technical Audit Dept and Completed Assistance
Euro
Saving system Agreement
MoU for future technical
assistance through which Memorandum of
Technical AMB will afford 35% of the Completed Understanding
total cost of any technical singed
assistance will be offered.

34
 6.2.2 International delegations visiting the bank

The numerous successes so far achieved by the bank over the past two years contributed in
creating a good international and regional reputation. In 2010, the bank was visited by high-profile
international and local dignitaries including the following:

H.H. Sheikha Mauza Bint

Nasser Al-Musnad
In May 2010, Sheikha Mauza Bint Nasser al-
Musnad, the wife of H.H. Prince of Qatar, and
Chairwoman of Silatech Organization, visited the
bank. During her visit, she reviewed the bank’s
experience in supporting youth in cooperation
with Silatech. She appreciated AMB's experience
and contributed US$2 million to the Investment
Fund. Upon her arrival, Sheikha Mauza was
received by Dr. Amatarrazaq Homad, Minister
of Social Affairs & Labor and Eng. Shaikh
Visit of H.H Shekha Moza for AMB
Abdullah Buqshan, member of AMB General
Assembly, Chairman and Executive Director.

Deputy Head of IFAD

Ms. Yokyo Amora, Deputy Head of IFAD,
visited AMB to get a first-hand understanding
of the activities undertaken by the bank, the
products offered and the areas AMB targets
with the aim of promoting future partnership
between the bank and IFAD in targeting rural
areas. Amora affirmed that IFAD care about
expanding this mutual partnership to serve small
and micro entrepreneurs through the Economic
Opportunity Fund, recently established by IFAD
and some international organizations. IFAD Deputy Head visiting AMB

World Bank Executive Director

During his trip to Yemen in December 2010, Dr.
Mahmoud Mohyiddin, Executive Director of
the World Bank visited AMB clients in Bab al-
Yemen in the old Sana’a city. The visiting guest
visited some of the small traditional businesses
funded by AMB. He was pleased by AMB
experience and its delivery of financial services
that meet clients’ needs.

WB Executive Director at an agate shop funded by

AMB.

35
In 2010, the bank was also visited by several international organizations including USAID, AFD,
Grameen Jameel, GTZ, KFW, Silatech and others.

International Participations

In 2010, AMB participated in several regional and international conferences and appeared as an
official speaker at most of these conferences. The bank was represented by key dignitaries at these
conferences, the most important of which are:
1) The Fourth Conference “Making Cents”, which was held in Washington in October
2010. During the conference, AMB was selected as the second best experience supporting
youth in the world.
2) Meeting of Global Microfinance Summit held in Kenya.
3) Sanabel Seventh Annual Conference.
4) Meeting of Silatech and USAID in Cairo.
5) IFC Meeting in Cairo.
6) Inauguration of Ebdaa Bank in Bahrain. Two of AMB’s clients were awarded in
Bahrain.

Technical Assistance Offered to Similar Organizations

In less than two years, AMB managed to occupy a prestigious status at both the local and regional
levels. It has become an outstanding model of Microfinance institutions, in which many Arabic
and international organizations are praising attributed to its mission which made of AMB a
microfinance reference in the Arab and Islamic states. AMB has begun providing microfinance
knowledge in the region and received numerous invitations to offer technical assistance services
in more than one country.

Table (18) Shows Some of the Technical Assistance Services Offered by the Bank.

Organization Country Type of Assistance

Ebdaa Bank Bahrain Training and consultations in financial management

Technically participated in establishing the bank. In

addition, it offered training and diverse consultations,
Ebdaa Bank Sierra Leone
developed operational procedures in HR, operation, finance
and IT departments.

Many agreements were signed with Arab Gulf Program for United Nations Development (
AGFUND) under which AMB offers technical assistance on financial system development
to Ebdaa Bank in Syria, plus training and financial consultations to establish two microfinance
associations in Jaizan of Saudi Arabia and Djibouti at the beginning of 2011.

36
Financial Controlling Environment

37
In 2010, AMB cared about enhancing internal controlling environment to achieve objectives and
contain expansions included in the 2011 – 2013 business Plan. In this context, the bank established
Internal Audit Dept, regulated external auditing and remained committed to CBY instructions and
international standards and procedures governing financial business.

7.1 Internal Audit Dept.

Immediately after establishing Internal Audit Dept and appointing Internal Audit officer and three
auditors, many inspection and exploration visits were conducted by auditors in many branches of
the bank in 2010. In spite of obstacles Internal Audit team encounter in Microfinance environment,
the auditors have conducted several field reports and endorsements of a large number of clients
in the field (their eligibility to get funding). All the auditing reports are subject to debate in the
presence of the executive director, senior management staff and relevant branch staff with the aim
of analyzing variances and suggesting workable solutions to them.

Table (19) Shows Internal Audit Dept Activities in 2010

Clause #

No. of visits conducted 12 visits

No. of oversight reports filed 14 reports

No. of branches visited 9 branches

No. of clients endorsed 1321 clients

Percentage of clients endorsed 9%

7.2 External Auditor

The bank regularly appoints an external auditor to review its accounts and develop financial
statements. AMB cares about selecting the most reputable international firms to conduct external
auditing. During its establishment period, the bank assigned ‘Deloitte’, an international firm to be
in charge of auditing accounts and developing financial statements for 2008 and 2009.
Complying with CBY recommendations on changing the external auditing firm from time to time,
the bank appointed ‘Grant Thornton, one of the most professional external auditing firms, to audit
accounts and develop financial statements for 2010 as per the relevant international standards.

38
7.3 CBY Report

AMB underwent the first inspection visit by CBY in January 2010. It was the first of its kind for a
Microfinance bank in Yemen and the region. The visit’s outcomes were all positive according to
the inspection report (2009 Report):

Table (20) Shows the Key Results of Inspection Report Conducted by CBY in 2010.

Component
Description
Assessed

• Capital ratio to the risk weighted assets is (255%). This percentage is high
since it exceeds the minimum limit determined by CBY (12%).
Capital
• The ratio of Classified loans to the total capital reached (0.02%). It is a good
percentage reflecting quality of loan Portfolio.

• Ratio of assets making revenues is 89% out of the total assets.

Assets • Ratio of classified assets to the total assets is (0%).
• Ratio of the provision of doubtable debts to the total liabilities is 119%.

• Net revenue ratio to the total assets is (0.6%) and t is a good percentage,
Profitability
compared to the bank’s age.

Liquidity • Liquidity ratio on the inspection date is 777%.

7.4 Anti-Money Laundering & Compliance Unit

After establishment of Compliance Unit it has started applying the international standards
related to Anti-Money Laundering and Combating Terrorism Financing. this unit is working on
International standers and it has very good cooperation with Financial Intelligence Unit in CBY .
AML unit has also started developing and amending some internal templates to go in line with the
40 recommendations + 9 which issued by FATF, like “Know Your Customer” and the change of
opening account application as per related recommendations and developing screens in MIS and
designing reports as well for facilitating the activities of this unit.

39
 AMB Achievements and
Awards in 2010

AMB Named the winner of Islamic Microfinance Challenge

Award 2010.
Out of 130 Microfinance Institutions and Banks from 43 countries in the world,
Al-Amal Microfinance Bank named the winner of Islamic Microfinance
Challenge Award 2010. The award is worth $104,000 and a technical assistance.
AMB was selected to receive this award as it offers diversified financial services
which are innovating, sustainable, scalable and Market-driven Models in line
with Islamic Sharia'a which contributed in creating more work opportunities
in Yemen particularly among Youth. CGAP, Deutsche Bank, Grameen-Jameel
Pan Arab Microfinance, and Islamic Development Bank partnered to sponsor
this global competition in order to uncover viable business models that provide
microfinance products compatible with Shari’ah.

AMB Wins the Award of Creativity & Innovation in Products.

AMB received the award of innovation and creativity in Microfinance products
at the Arab world level. The competition for this award sponsored by Grameen
Jameel Foundation and the award amounts to $10,000.

AMB received the Silver Certificate for Transparency from

Microfinance Information Exchange market (MIX).

AMB was selected as the second largest Microfinance institution

supporting Youth in the world at the Fourth International
Conference, held in Washington DC in October 2010.

40
Success Stories

41
 Client Information
Client name: Adel Warda
Marital status: Married and has 11 children.
Activity: Kabab Seller
Loan Amount
Four loans with values: (YER80,000 - YER120,000 - YER150,000 - YER150,000)
Equivalent : 373 $ 561 $ 701 $ 701 $ 1 USD = 214 YR

Funding impact
The client inherited the trade from his father. He had a coffee shop, but after getting the
four loans from AMB, he opened shop for selling Cabab (breakfast food) and Coffee as
well. His income increased, leaving a positive impact on his living conditions.

The 50-year-old man is always cheerful in his everyday life as said by residents of his neighborhood.
He was also fond of the popular games. It is in this neighborhood where he got married and where
his first child was born. Adel was facing difficulty meeting the basic needs of his 11 children as
his small project couldn’t generate sufficient income for the big family.
He knocked on several doors in search of loans to help him overcome some of his economic
difficulties but of no avail. The declaration of AMB helped Adel overcome his state of frustration.
Reading al-Thawra official daily newspaper, he went through the AMB announcement and directly
moved to the AMB branch in Tahrir area of the capital Sana'a to get a loan of YER80,000, which
he used to pay the shop rent and develop his project to sell Cabab in addition to coffee. This
encouraged him to apply for 2nd, 3rd, 4th loans respectively (YER120,000, 150,000 and 150,000),
which he used to further develop the project.
The number of his clients increased and his income improved, enabling him to pay AMB back
in the determined dates and win the bank's trust. Being one of the AMB's active clients, who
promoted the bank's services among small and micro entrepreneurs, many of his likes approached
AMB to get funding.

42
 Client Information
Client Name: Abdurrahman al-Qadhi
Marital Status: Married and father of 4 children
Activity: Selling spices
Loan Amount
Four loans with values: (YER300,000 - YER 300,000 - YER400,000 - YER400,000).
Equivalent : 1402 $ 1402 $ 1869 $ 1869 $ 1 USD = 214 YR

Funding impact
The client used the funding to buy more quantities of spices. His business developed
until he became a key spices provider to restaurants and other spices shops.

His love for the spices dates several years back, which helped him in shaping his future trade.
He got the experience through his work at Abu Hani Spcies Shop in Bab Al-Yemen and made
YER1.5 million after two years of work in this shop. Al-Qadhi thought about establishing his own
business but this money is not enough for the project. Looking for a funding source to increase
his capital for establishing his own business, al-Qadhi approached AMB in early 2009 [one of the
first clients for AMB].
Al-Qadhi received the first two loans worth YER300,000 each. As of his commitment to repay
before deadlines, he got a third & Fourth loan worth YER400,000. In months, his capital doubled
(YER3 million) enabling him be a key spices provider to restaurants and other shops. He
encouraged his likes to approach AMB for funding to overcome any economic problems facing
them.
Al-Qadhi's success story didn't stop at this point. He was honored by the Bank in Kwait where he
received a certificate of excellence because of being an example of the bank's successful clients.
He is also planning to become a spices wholesaler in the near future.

43
 Client Information
Client Name: Ahmad Lutf al-Ezairi
Marital Status: Married and a father of 8 children
Trade: Jambia making
Loan Amount
Two loans with values: (YER40,000 - YER90,000)
Equivalent : 187 $ 421 $ 1 USD = 214 YR

Funding impact
The client used the funding to buy raw material for making popular Jambias [daggers].
His trade developed and his income improved as a result.

Raised in the Jambia market in the old city, al-Ezairi has been fond of ancient and old Jambias and
therefore chose to be a Jambia maker. He is a son of a family famous for Jambia trade, and this
trade was inherited to him from his father.
Thinking about developing his business, al-Ezairi approached the AMB branch in Tahrir area to
receive a YER40,000-worth loan. The funding helped him increase his capital, thereby enabling
him develop his trade and improve his income. Thanks to his commitment to the repayment
deadlines, he got another loan worth YR90,000. Now, he is comfortable with his trade and never
hesitates to encourage other owners of small businesses to approach AMB for funding.

44
 Client Information
Client Name: Shoiya Bilal
Marital Status: Married and mother of 6 children.
Activity: Selling Luhuh (Yemeni breads made of corns)
Loan Amount
Two loans with values : (YER 30,000 - YER 30,000).
Equivalent : 140 $ 140 $ 1 USD = 214 YR

Funding impact
After getting the loan from the bank, the client bought cereals and other necessary components
for making Luhuh. Now she produces large quantities of Luhuh and distributes them to trade
stores for sale. This increased her income and improved the living condition of her family.

She was known for her manual labor since her childhood. Her appearance reflects the difficult
living conditions she experienced. Having become a mum of six children, she is the only supporter
for the family in a community struggling for survival. Moving from Hajja governorate to live in
modest house in Madhbah area, west of the capital Sana’a. She is now producing Luhuh to cope
to provide for her children and herself. She proved being an outstanding example for residents
in the neighborhood. The idea originated from her Luhuh bowel, and her hope for better living
grew. She decided to take a loan from AMB to fund its Luhuh Production Project and increase
her produtvity.
Shoiya had faith in the idea and translated it into successful practice on the ground by taking two
loans, the amount of each is YR30,000. She made use of this funding in buying cereals and a large
bowl, and then raced with time in the production and sale of Luhuh. She managed to pay AMB
back in time (she fulfilled all her obligations within 8 months).
Shoiya praises AMB policy and says that such a policy is the only solution for the poor. She never
hesitates to tell her peers about this policy and encourages them to apply for loans. Her philosophy
in life is: “A thousand-mile trip starts with a single step.”

45
 Client Information
Client Name: Hayam Abdulkarim Asalami
Marital Status: Single
Trade: Bakhor industry
Loan Amount
One loans with values: (YER50,000)
Equivalent : 234 $ 1 USD = 214 YR

Funding impact
She became able to generate an income for herself and her aunt who lives with her and
she became also able to pursue her study at the university.

Having accompanied her aunt like a shadow since childhood in Lahj city where smells of perfumes
and Jasmine flowers haunt admirers and Mis Hayam in particular, in the capital Sana’a, Hail street,
she began matching her skills of perfume industry and her internal essence. Hayam’s skills and
creativity of producing Bakhor which she calls (bird’s milk) and perfumes remained covered
waiting for financial support to uncover her skills and move her to the limited income segment.
It is AMB which takes the honor of revealing Hayam’s creativity through offering her a loan
amounts to 50,000YER.
Hayam’s intelligently made use of the loan by increasing her capital through the purchase of
components materials which resulted in expanding and scaling up her project, increasing her
profits and improving living conditions. She was able to pay the bank all installments in time and
never hesitated in promoting for the bank services among her friends and colleagues persuading
them to solve their problems by developing their own projects and receiving financial support
from AMB.
Hayam is intending to take second and third loans from AMB to support her project and in spite
of her vocational expertise, she is a student in the Faculty of Commerce and Economy. She has
achieved both success and good reputation at wide range and her profit got increased as well.

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