The Road to the SDGs

X Selected microfinance institutions are expected to match the funding provided by IsDB and ISFD. They will deposit the matching funds into a dedicated account which will be used to finance clients meeting the criteria specified by IsDB. They are also expected to provide non- financial assistance to ensure that their clients will have the capacity to better utilise their financing. X The Islamic microfinance institution will then on-lend the financing to its clients using Shariah- compliant modes of financing (Murabaha, Salam, etc.). IsDB will make no objection to the financial product to ensure that: – The proposed products are suitable to the needs of targeted MSMEs – The pricing is justified – Clients will benefit from the concessional loans provided by IsDB. X Similarly, a line of finance will be extended to Islamic banks and public and private financial institutions (including partner financial institutions of IsDB Group). X SERVE is based on global benchmarks and best practices in order to support governments’ efforts in curbing the impact of COVID-19 on their economies. It will contribute to sustaining current and future working capital requirements, funding innovation and adaptation of MSMEs’ business operations to mitigate the impacts of the pandemic. ACHIEVEMENTS X The SERVE Programme is already addressing the profound impacts of the COVID-19 pandemic on the socioeconomic conditions of MSMEs in MCs. X The IsDB/ISFD support to provide liquidity to partner financial institutions will strengthen their resilience and that of their beneficiary MSMEs. X By the end of 2020, SERVE projects had been approved in Djibouti, Jordan and Palestine, with a fourth project planned for Morocco. X The four projects are expected to protect and create at least 107,000 jobs in total. X The financing has the potential to achieve results beyond the initial beneficiaries, as it may be used to support the financial partners of IsDB Group entities as well as equity investees of IsDB Group and its entities and may also be used to leverage partners and donors. INVESTMENT X The SERVE Programme was approved by ISFD in September 2020, mobilising US$ 120 million from IsDB Group. X IsDB has made a total commitment of US$ 83.30 million and a further commitment of US$ 327 million has been mobilised from governments and financial institution counterparts. X The first disbursement has already been made in Djibouti. S E R V E P R O G R A M M E The Programme is expected to create or maintain 314,000 jobs by financing more than 150,000 MSMEs through a package of US$240 million [ 93 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S