AGFund set to open microfinance bank

MANILA, Philippines - The non-profit Arab Gulf Programme for Development (AGFund) is set to open a microfinance bank in the Philippines that will help boost livelihood opportunities for the poor, visiting Saudi Prince Talal Bin Abdul Aziz said.

Prince Talal, who is AGFund president, said Arab investors are eager to take advantage of business opportunities in the Philippines but the government should also undertake initiatives to improve investor confidence in the country.

“What we’re planning now, and coordinating with the Vice President (Jejomar Binay) and private sector, is to make bank for the poor in this country,” Prince Talal told reporters after conferring awards to winners of the AGFund International Prize for Pioneering Human Development Projects at Fairmont Hotel, Makati City on Wednesday night.

“We have five banks (in other countries) and we have created many jobs for the poor…Meaning, in other words, we’re not only helping the poor but also solving the problem of unemployment,” he said.

He said he hopes his next visit to the country will be to open the new bank.

The AGFund is a regional organization based in Riyadh, Saudi Arabia established in 1980 upon the initiative of Prince Talal with the support of leaders of the Gulf Cooperation Council Countries: United Arab Emirates, Bahrain, Qatar, Oman, Kuwait.

The organization works mainly in the field of development and growth at the international level through partnerships with the United Nations, regional and national development groups, and the public and private sectors.

AGFund officials said the microfinance bank will be patterned after the Grameen Bank of Muhammad Yunus, who is also involved in AGFund projects.

A $2 million start-up capital will be contributed by AGFund while the Philippine government and the private sector will provide a counterpart $3 million to put up the bank.

Prince Talal said he is ready to promote the country as a business destination for Arab investors.

“The Saudi investor, and the Arab investor in general, is very active. They’re always looking for good investment atmosphere. What we want is a promotion for the Saudi investor to invest in the country,” he said.

It was the first time the AGFund held its international awarding ceremonies in the country for the winners, which included the Philippine Rice Research Institute for its Open Academy for Philippine Agriculture project.