Wealth Management by

Limited access to funds is the main challenges facing SMEs

August 24, 2014 12:38 am

Arab bankers and economists said that Limited access to financing and an underdeveloped regulatory, institutional and policy framework are the main challenges facing small to medium enterprises in the Arab world, The Daily Star reported. Limited access to lending puts the total financing gap for SMEs in the MENA region at an estimated $160bn to $180bn, said Lebanon’s Central Bank First Deputy Governor Raed Charafeddine, citing a study by the International Finance Corporation, the private arm of the World Bank. According to the IFC report, nearly 63% of SMEs in the MENA region do not have access to finance while a recent survey by the World Bank and the Union of Arab Banks of over 130 MENA banks shows that only 8% of lending goes to SMEs across MENA, and 2% in GCC countries.