– AlBaraka Capital, a subsidiary of AlBaraka Bank Egypt, has signed a Memorandum of Understanding (MoU) with INVIA, a leading fintech company, to launch Egypt’s first Sharia-compliant Revenue Based Finance (RBF) Fund aimed at supporting small businesses.

– The RBF Fund provides a tailored financing solution for manufacturing small businesses, which often struggle to access funds due to traditional lending criteria. The fund offers finance in exchange for a percentage of future revenues, aligning with Islamic financial principles.

– The initiative aims to empower manufacturing small businesses, providing financial support and business guidance to help them scale and meet domestic demand, contributing to Egypt’s economic growth and the government’s strategy to strengthen the industrial sector.

AlBaraka Capital, a subsidiary of AlBaraka Bank Egypt announced the signing of a Memorandum of Understanding (MoU) with INVIA, the leading  fintech specialized in innovative finance for small business in Egypt, to launch the first Revenue Based Finance (RBF) Fund a “sharia Compliant”.

This groundbreaking initiative addresses a critical gap in the market. Manufacturing small businesses often face significant challenges in accessing finance and tailored made business support due to stringent lending criteria and the complexity of obtaining funds from traditional sources.

The RBF Fund, structured in accordance with Sharia principles, is to offer an innovative financing solution that promotes shared risk between the investors and the small businesses by offering finance in exchange of percentage of future revenues.

This approach not only aligns with Islamic financial ethics but also provides a more accessible and flexible funding option for manufacturing small businesses.

“By partnering with INVIA team, we are committed to empowering manufacturing SBs, which are the backbone of our local economy. The RBF Fund will provide the much-needed financial support to help these businesses overcome their challenges, enhance their capabilities, and meet the strong domestic demand,” said Sarah Hosni, Managing Director of AlBaraka Capital.

“This fund represents our innovative approach to offering Sharia-compliant financing solutions to SBs, specifically tailored to support the manufacturing sector, which is crucial to sustainable economic growth. By aligning with the government’s strategy to bolster this sector, we are committed to driving economic progress and enhancing the overall industrial landscape in Egypt.”

“We are excited to collaborate with AlBaraka Capital on this pioneering initiative, we believe in supporting Small businesses with innovative financial tools that fit their need for growth, in addition to providing business support in helping entrepreneurs navigate the complexities of scaling their businesses said Yehia Ashour, CEO of INVIA.

Dreny & Partners will act as a legal advisor for structuring the RBF Fund.