For Immediate Release
Press Release
June 03, 2024: The National Bank of Iraq (NBI) partnered with the United States Agency for International Development (USAID) to provide $1,650,000 in financing to small-and medium-sized enterprises (SMEs) in Iraq.
The limited availability of bank credit to the private sector — at just nine percent of GDP — stifles economic and employment growth. This financing shortage particularly affects SMEs, which comprises a majority of private sector employment, and youth, who make up more than half of the population.
CATALYZE, a USAID access to finance program, collaborates with local financial institutions to facilitate SME lending. The goal of CATALYZE is to increase access to finance and foster improved employment opportunities for youth. CATALYZE expects to mobilize $9M USD in private sector capital for a minimum of 366 Iraqi SMEs by 2025. CATALYZE will also work to address common barriers faced in the commercial finance sector such as high costs, risks, and information asymmetry.
The partnership between NBI and USAID CATALYZE represents a pivotal step toward driving private investment, enhancing private sector competitiveness, and alleviating youth unemployment; ultimately contributing to economic growth, stability, and prosperity in Iraq.
“We believe in the importance of supporting the critical role of SMEs in Iraq’s economic development,” said Ayman Abu Dahim, CEO of NBI. “Through this collaboration with USAID, we aim to provide SMEs with the financial resources needed to help them achieve their business growth goals.”
“This partnership marks a significant stride towards unlocking opportunities for small businesses and young entrepreneurs in Iraq. By fostering access to finance and nurturing entrepreneurial endeavors, we are not only driving economic growth, but also shaping a brighter tomorrow for Iraq’s youth” said Elise Jensen, USAID/Iraq’s Mission Director.
ABOUT NBI
The National Bank of Iraq (NBI) was founded in 1995 as a publicly traded, private sector company, offering comprehensive banking services to individuals and businesses in Iraq. As a result of NBI’s success and to fuel future growth, its capital was increased from the initial (US$215 million) in December 2013.
ABOUT USAID
The United States Government, through USAID, is a steadfast partner of Iraq, helping to enhance social and economic stability for all citizens. USAID is working with the Government of Iraq, international institutions, and local partners to accelerate economic growth while also empowering women, youth, and religious and ethnic minorities.