The authority stated that this decision stems from its awareness of the effects of various economic variables, which necessitated the development of rules regulating the practice of non-banking financial activities to ensure the continuity of its important role in helping individuals and institutions to meet their financing. and investment needs.
The authority also clarified that the decision gives greater flexibility to obtain appropriate financing, whether to start or develop projects, to develop the volume of its activity and to increase its competitiveness, and that this amendment represents an interaction with the economic changes in the markets to counter the effects of the high rate of inflation, as the authority aims to provide appropriate funding to middle-income groups as part of a state plan for financial inclusion.
The FRA said in its statement that the value of medium, small and micro business financing balances stood at £42 billion at the end of February this year, up from around £29 billion in the same period last year. , and that the number of beneficiaries reached 4 million.
As part of the strengthening of sources of financing for micro-enterprises, the Authority granted, last August, the first license to a financial institution to finance micro-enterprises in the non-banking financial sector using Islamic financing formulas.
And last April, the Central Administration for the Microfinance Sector at the Business Development Agency said it would transfer transfers to intermediaries of around £700 million in the current year to reinvest them in favor of micro-enterprises, and that the agency aims to pump 2.8 billion pounds into microfinance in 2023.
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