About Nomou-MENA - Nomou-MENA website

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GroFin wins Islamic Economy Award 2018

GroFin is pleased to announce that it has won the 2018 Islamic Economy Award in the ‘SME Development’ category. "This award is testimony to the efforts made by GroFin to ensure its products are accessible to one and all. We are determined to provide our clients with financing that respects their customs and beliefs” - Mohamed Hawary

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The Nomou Programme

Creating sustainable employment, economic growth, and positive social impact through the nurturing and expansion of a sustainable small and medium sized business sector.

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Believe. Support. Succeed.

The Nomou Programme supports dedicated entrepreneurs of growing businesses and start-ups in the Middle East and North Africa (MENA).

Nurturing and expansion of sustainable SMEs in MENA

The Nomou Programme

In 2012, GroFin a pioneering development finance organisation, for small and medium-sized enterprises (SMEs) and a UK-based charity, founded the Nomou programme through a restricted donation of US$50M. The objectives of the programme are to create sustainable employment, economic growth, and positive social impact through the nurturing and expansion of a sustainable small and medium sized business sector in the Middle East and North Africa. This cooperation between GroFin and the UK-based charity is built on a 10-year strategic partnership which has resulted in a proven unique, portable, and scalable solution for the development of sustainable SMEs.

The Nomou Programme provides access to medium-term risk capital and value-adding business support — an integrated solution to the under-served entrepreneurs of SMEs in Oman, Jordan, Iraq, and Egypt. The Nomou programme through GroFin’s management delivers best in class services for dedicated entrepreneurs of start-up or existing SMEs. Through these services, Nomou is increasing the capacity of the grossly under-served SME sector, thus developing supply chains and helping to create much needed employment.

Vision
Mission
Values

Nomou aims to promote the growth of a sustainable small and growing business sector that acts as the major employer and contributor to economic growth and social development in the MENA region.

Nomou, through its partners and managers, provides best-in-class services focusing on delivering risk capital, business support and market access to start-up and growth enterprises through locally developed capacity.

Over the next 10 years, Nomou seeks to invest in and support 600 start-ups as well as existing SMEs which will create more than 15,000 sustainable jobs, and improve an estimated 195,000 livelihoods in the MENA region.

“Nomou, meaning growth in Arabic, provides access to medium-term growth finance and value-adding Business Support to committed entrepreneurs in the region. Through these services, Nomou is increasing the capacity of the grossly underserved SGB sector, thus developing supply chains and helping to create much needed employment.“

Nomou helps SMEs successfully navigate difficult operating environments, increase market share, and grow their business to its fullest potential.

Addressing SME challenges

Supporting Entrepreneurs

In an effort to increase the potential success of its clients, the GroFin MENA team develop a long-term personal relationship with each entrepreneur, creating a suitable deal structure repayment period and providing continuous business support based on the particular needs of the business.

Integrated Business Support

In the Nomou model, business support is a continuous value added service, providing entrepreneurs with access to industry experts before the investment and throughout its term. Beginning at application stage, Nomou business support offers business owners an objective and professional perspective on their business plan, their perceived needs, viability, risks, and potential areas of improvement. During the investment period, the business growth phase, Nomou post-investment business support focuses on financial management, marketing and sales support, gaining access to new markets, operational management, strategic planning, business counselling, and managing in accordance with environmental governance standards.

The Nomou programme currently operates in Iraq, Jordan, Oman, and Egypt, with more countries to be added in the next five years.

Where the programme operates

MENA Region

The Nomou programme currently operates in four countries:

Egypt
Jordan
Iraq
Oman

The programme is managed by GroFin from its regional office in Cairo while local activities are coordinated by GroFin offices in each country.

In the future, Nomou will endeavour to add additional countries to the programme.

Addressing specialised needs of SMEs

Why MENA?

The Nomou programme addresses the specialised needs of SMEs classified as part of the missing middle. In other words, these businesses are too small for private equity, yet too large for microfinance. Start-ups as well as existing SMEs must be positioned to be the region’s primary employer to tackle the unemployment challenge. Indeed, employment is a major driver for reducing conflict and uplifting social wellness.

MENA entrepreneurs face numerous challenges in accessing the capital and support they require to start or to grow successful and sustainable businesses. They are grossly underserved with few capable and experienced service providers operating in-country. As a result, regional SMEs are not making an equal economic and social contribution to their local communities and countries as their counterparts in developed markets.

Too often, SMEs do not qualify for finance from traditional lending institutions due to lack of collateral and/or track record. Furthermore, banks and other lenders do not offer holistic value adding SME solutions that addresses the needs of SMEs to grow and prosper. Despite the impressive economic and social progress in some of the MENA countries, there remains a significant skills and experience gap, particularly among SME entrepreneurs and management.

Nomou solution

The Nomou programme is based on GroFin’s proven model of combining risk capital, business support, and market access to address these gaps and provide entrepreneurs the resources they need to run a viable business, generate sustainable jobs, and create positive impact on their community.

The Stakeholders

Nomou Structure

The Nomou Programme was seeded with a US$50M restricted donation from a UK-based charity and founding partner in the programme, serves as manager of the restricted donation and promoter of Nomou. The Nomou programme is further funded by institutional investors and development organisations such as UKAID, as well as local and international Development Finance Institutions including KfW, Dutch Good Growth Fund (DGGF), Norfund, Anthos Capital and Lundin Foundation. GroFin is the co-promoter and implementing partner who manages the funds and provides business support to Nomou’s SME clients.

The Nomou Funds

Country Funds

The MENA region represents a significant market in terms of size. From a political perspective, SMEs operating in the region may promote economic and social impact within their local communities, as well as the broader economy of their countries. The Nomou programme actively works to create partnerships and linkages between organisations and small and growing businesses to provide access to new markets, as well as to develop local content and supply chains.

The Nomou programme funds focus on investing in and supporting existing and new businesses with the ability to:

Create sustainable employment;
Produce local content; and
Deliver socio-economic benefits.

Oman
Iraq
Jordan
Egypt

Nomou Oman Fund

SMEs in Oman

A total of over 120,000 registered SMEs account for more than 90% of the total businesses in Oman, contributing to around 15% of the country’s GDP and serve as a major source of employment.

However, the growth of the of the Omani SME sector is impeded by factors such as access to financing (intensified by limited competition among banks and high margin requirements for loans), lack of required business knowledge, difficulty in finding customers, high costs of production and administrative burdens.

Nomou in Oman

The Nomou Oman fund was created to empower Omani entrepreneurs and create jobs in the region. Initially named the Intilaqaah Fund, the Nomou Oman Fund was established in 2006, the fund was rebranded in 2013 as the Nomou Oman Fund and is part of the Nomou investment fund programme co-established by GroFin and a UK-based charity.

The Nomou Oman Fund follows the GroFin model of integrating risk finance and business support to empower Omani entrepreneurs by enabling skills, business and technology transfers and, at the same time, assists them to achieve success while delivering positive socio-economic impact.

The Nomou Oman Fund supports Omanisation through job creation in high impact sector SMEs such as health, education, manufacturing, and food security enterprises. Moreover, it focuses on SMEs that have the capacity to compete in the supply chain of large companies operating in Oman, namely in the oil and gas, manufacturing, construction, financial services and public services sector.

Nomou Iraq Fund

SME Sector in Al Basra Governorate

The capital of the Al Basra Governorate and the second largest after the Capital City of Baghdad with a population of 3.5 million inhabitants, Basra boasts unrivalled economic strength as its Majnoon Oil Field is considered the richest oil field in the world with 38 billion barrels of oil in place, besides being the fifth largest oil field in size globally.

However, Basra currently lags behind in all walks of economic life. The productive sectors such as agriculture and industry are still using outdated production methods and machinery which has made them incapable of coping with citizens’ needs and competing with imports. Job opportunities for citizens are also insufficient, hindering efforts to curb the continued unemployment problem in Basra.

The growth of Iraqi SMEs has been impeded by wars, political instability, lack of infrastructure, and absence of institutional support. One of the key obstacles to SME lending in Iraq is the lack of expertise of both banks and SME investors and absence of best practices in SME finance. In terms of private bank branches per capita, Iraq remains one of the most underserved nations.

Nomou in Iraq

The Nomou Iraq Fund is managed by the GroFin Iraq Office based in Basra. The Nomou Iraq Fund was able at inception to undertake a cohesive approach in identifying and marketing the strategic positioning in Basra as a stronghold for GroFin operations in Iraq as a whole.

With the support of the investors of the Nomou Iraq Fund and the concerted application of the GroFin business support proposition, the Fund was able to find a niche in the supply chain.

The Nomou Iraq fund focuses on Iraqi-owned businesses operating in sectors that are fundamental contributors to regional economic development, such as oil and gas related products and services, power and utilities, water related products and services, education, healthcare, hospitality and tourism. The growth and success of the Nomou Iraq Fund lies in providing support to businesses in key sectors while remaining on the lookout for any other potentially viable SME.

Nomou Jordan Fund

SMEs in Jordan

SMEs in Jordan account for over 98.5% of the total number of registered companies, employ around 60% of the local labour force and contribute up to 50% of the country’s Gross Domestic Product (GDP). As the main driver of economic growth in Jordan, SMEs are also the main source of export earnings and value creation.

Access to financing is a challenge faced by Jordanian SMEs due to lack of reliable collateral, lack of reliable guarantors, lack of track record, lack of business management skills, high interest rate, and lender’s requirements prior to financing, among others. SMEs and aspiring entrepreneurs thus have to often resort to the informal sector, family and friends for access to finance.

Nomou in Jordan

Through an anchor commitment from a UK-based charity, the Nomou Jordan Fund was established in 2013. As at 31 Dec 16, the Nomou Jordan Fund had disbursed capital totaling US$ 14.1 million, supported more than 320 entrepreneurs, invested in 31 small and growing businesses, sustained over 2,400 jobs and impacted 12,120 livelihoods.

The success of the Nomou Jordan Fund is founded in its integrated solution of providing both appropriate risk finance and value adding business support to SMEs. The business support facility upholds the Fund’s mission by affording SMEs the hands-on support they need to access finance, increase their viability, and manage the numerous risks and challenges they face. The Fund’s support is aimed at maximising the success of SMEs and their socio-economic impact.

Nomou Egypt – GroFin SGB Fund

SMEs in Egypt

Egypt has a large and underserved SME sector. The Egyptian SME sector accounts for over 90% of the private sector, employs an estimated 65% of the country’s workforce and contributes up to 80% of the country’s Gross Domestic Product (GDP). A combined 78% of the country’s SMEs operate in the trade and manufacturing sectors.

Egypt has been long considered as the largest SME hub in the Middle East as per operating density and number of enterprises. The country’s current economic challenges are forcing it to restructure and strengthen its growing SME sector. While existing SMEs require approximately US$ 1 billion annually (according to the United Arab Bank), reports indicate that currently banks meet less than 10% of the required financing.

Nomou in Egypt

As part of the regional initiative to catalyse Small and Medium Enterprise (SME) sector to support sustainable job creation in Egypt, the objective of Nomou in Egypt is to support small and growing businesses (SGBs) with a unique model that combines medium-term loans, value-added business support and market linkages through the GroFin SGB Fund.

With a rapidly growing population and a slow rate of job creation, the GroFin SGB Fund provides an opportunity for SMEs to grow and contribute more significantly to Egypt’s economy. The fund manager GroFin understands that these entrepreneurs need more than access to money and provide them with a solution of integrated continuous business support that includes entrepreneurial and management skills as well as access to larger markets for their goods and services.

The SGB Fund actively seeks business owners of SMEs with revenues ranging from EGP 2M – 300M in the greater Cairo area and exterior governorates and aims at providing each client with value adding business support that is drawn from the local team’s knowledge as well as an international network of experts and partners.

Belief in a shared vision

The Nomou Team

GroFin’s workforce of 150 employees offers more than 1,250 years of combined experience in finance and the specialised support of growing businesses. With our headquarters in Mauritius and investment offices across 15 locations in Africa and the Middle East (South Africa, Zambia, Kenya, Rwanda, Uganda, Tanzania, Nigeria – Lagos and Port Harcourt, Ghana, Ivory Coast, Senegal, Egypt, Oman, Jordan and Iraq), GroFin offers both centralised expertise and on-the-ground support to SMEs in the countries of our operation.

Egypt
Iraq
Oman
Jordan

Karim El Marashly
Regional Credit Administration Manager
Karim Gad El Nagdy
Investment Manager
Alice Tharwat
Office Co-ordinator

Raed Badran
Investment Executive
Hawrre Meerani
Investment Manager
Mustafa Al Maliki
Investment Manager
Abdal Al-Hassani
Investment Manager
Shaymaa Al Hamadani
Office Co-ordinator

Sami Al Hassan
Investment Executive
Mohamed Al Maskari
Senior Investment Manager
Abdul Al Balush
Office Co-ordinator

Alfinaz Murad
Investment Executive
Tareq Aldoghmi
Legal Counsel MENA
Wa’el Sunna
Senior Investment Manager
Deena Amosh
Credit Administration Manager
Mohammad Habbul
Junior Investment Manager
Wafaa Sakhriyeh
Office Co-ordinator