JEDDAH, 30 November 2004 — In a groundbreaking initiative, a new micro financing program directed at women entrepreneurs has been established in Jeddah. Abdul Latif Jameel developed a micro-loan program for groups designed to give them independence and basic experience of business. Three hundred and thirty women have benefited from the initiative since it was launched on June 2004.
The center of this program is located in the southern area of Jeddah, Al-Hindawya district, which is close to the poor neighborhoods. The micro loans begin at SR1,000.
Women who benefit from this project, use the money to finance craft work and other small business. Recipients pay the loan back in monthly installments. The Abdul Latif Jameel project is a non-profit charitable project, and does not charge commission or interest on the loan.
There are six ground-level organizers in the program, working as moderators and guiding women with their loans.
“Each one of us is responsible for a particular area. We used to knock at the doors and speak to the people in the area about the project” said Saadya Al-Wafy the head of the Hindawya District Office.
“Then, they started calling us and forming groups to proceed with the loan. Women responded to our project because they were in need. They either come to us in groups of five, or we put them in groups. We make everyone of them come up with an idea for a project, so we can guarantee that there are multiple chances for success,” explained Maha Al-Harby another moderator in the project. Al-Harby added that this project helped women to gain independence and help themselves out of poverty.
Arab News visited G. who benefited from the program. She was suffering from very limited financial resources. She gathered four of her neighbors into a group and developed her handicraft skills, selling the products for reasonable prices.
“Um Faisal” is a very old women who was suffering from lack of resources which led her to beg for a living. She joined the Abdul Lateef Jameel project, bought scarves with the loan she took and resells them. She was able with this trade to make profit and make a living.
Ibrahim Badawood, the general manager of the ALJ Community Services program of productive families said, “Our aim is to create job opportunities in the future. We want Saudis to be productive members of society and not just consumers.”
Badawood added that this programs deals with women because they have an economic instinct, and can manage trade much better than man does.
The productive Family program for micro-lending is one of many programs for social services that Abdul Latif Jameel underwrites for the benefit of the people of Saudi Arabia.
