AlBaraka Capital and INVIA Launch Egypt's First Sharia-Compliant Revenue-Based Finance Fund

AlBaraka Capital, a subsidiary of AlBaraka Bank Egypt, has signed a Memorandum of Understanding (MoU) with INVIA, a leading Egyptian fintech specializing in innovative financial solutions for small businesses, to launch the first Sharia-compliant Revenue-Based Finance (RBF) fund in the country.

This initiative aims to fill a significant gap in the market, where small manufacturing businesses struggle to access finance due to stringent lending requirements and the complexities of traditional funding options. The new RBF fund, structured in line with Islamic financial principles, will provide financing in exchange for a share of the future revenues of these businesses, creating a shared-risk model between investors and small businesses.

The fund offers a more flexible and accessible alternative for small manufacturers, in line with Islamic ethical standards. AlBaraka Capital's Managing Director, Sarah Hosni, emphasized the fund's role in empowering manufacturing small businesses, a crucial part of Egypt's economy, by helping them overcome financial challenges and meet local demand.

Hosni also highlighted that this innovative, Sharia-compliant fund is in line with the government’s strategy to support the manufacturing sector, which is essential for sustainable economic growth and the country’s industrial development.

Source: WAYA