Nomou Programme supports entrepreneurs and SMEs in the Middle East

The Nomou Programme

The Nomou Programme is managed by GroFin and provides access to finance in the form of medium-term risk capital and value-adding business support (expert advice and continuous guidance) to grow SMEs and support entrepreneurs in Egypt, Jordan, Iraq and Oman.

The programme delivers best in class services for dedicated entrepreneurs of start-up or existing SMEs. Each local office is staffed with GroFin Investment Managers and Investment Executives who provide front line support to entrepreneurs. Through these services, Nomou is increasing the capacity of the grossly under-served SME sector in MENA, thus developing supply chains and helping to create much-needed employment.

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Vision

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.

Mission

Impact and Investments

128

SME
Investments

1180

Entrepreneurs
Supported

US$ 70m

Business Loans
Approved

Investors / Funders

Nomou Programme - Raised Capital and Grants

US$ 100m

Raised capital & grants towards funds

US$ 120m

Economic value added p.a.

(Figures as at 31 December 2021)

Nurturing SMEs in MENA

In 2012, GroFin 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 (MENA). 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 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 AHL Charitable Foundation. GroFin is the co-promoter and implementing partner who manages the funds and provides business support to Nomou’s SME clients.

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 Programme Funds

Established as a regional initiative in the Middle East and North Africa (MENA), the Nomou Programme currently invests in Jordan, Egypt, Iraq, and Oman. The Nomou Funds for start-up and growth enterprises are open to development and impact orientated investors from the public and private sector such as development finance institutions, international financial institutions as well as private investors.

Nomou Jordan Fund

Abou Arab – Nomou Jordan Client

The Nomou Jordan Fund (NJF) was launched in 2014 to support the development of the country’s SME sector. It prioritises investments in women-owned and employment-intensive businesses to create maximum impact. The Fund’s mandate also includes a strong focus on investing in businesses owned by – or employing – refugees or migrants.

As the main driver of economic growth in Jordan, SMEs are also the main source of export earnings and value creation. Access to business loans 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 SME loans, among others. SMEs and aspiring entrepreneurs thus have to often resort to the informal sector, family and friends for access to finance.

The success of the Nomou Jordan Fund (NJF) 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.

The Nomou Jordan Fund also supports Syrian refugees who fled to Jordan to relocate since war broke out in their country in 2011. The Fund provides a unique combination of access to finance, business development skills and market linkages to Syrian entrepreneurs in Jordan, as well as Jordanian SMEs that employ and support the livelihoods of Syrian refugees.

Visit NJF Website

Investors and Funders

Iraq Funds

Al Majal – Nomou Iraq Client

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 under-served nations.

Nomou Iraq Fund (NIF)

The Nomou Iraq Fund (NIF) was launched in 2013 with the objective to build a strong SME sector to help rebuild the economic fabric of Iraq and create sustainable jobs for Iraqis. NIF aims to support local content development to help rebuild an industrial economy damaged by war and embargoes and to create employment in a region where the fast-growing and predominantly young workforce have limited opportunities.

The Nomou Iraq fund focuses on Iraqi-owned businesses in southern Iraq, 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 SMEs.

Visit NIF Website

Northern Iraq Investments (NII)

During 2019, GroFin expanded its footprint in Iraq by establishing Northern Iraq Investments (NII) as a separate vehicle for investments in the Nineveh Plains and other areas previously controlled by ISIS. As a result, the region has seen thousands of people displaced, major damage to infrastructure and a significant adverse impact on its economy. Based in Erbil, the new investment office is staffed by a new team. NII made its first investment in the north in the last quarter of 2019.

Northern Iraq Investments provides finance and technical assistance to small and medium-sized businesses that operate in Nineveh Province or in post ISIS affected areas in northern Iraq.

Visit NII Website

Investors and Funders

Nomou Oman Fund

Nomou Oman Fund Client – SNTC

Through a gift to the nation, Shell first established the Intilaqaah Enterprise Fund in Oman in 2007 and it was then rebranded to Nomou Oman in 2013. The Fund was established to benefit local entrepreneurship and Omanisation, which refers to the employment of Omanis by local businesses. It targets high impact sectors and aims to increase the number of local SMEs participating in the supply chain of large companies operating in the country. The Nomou Oman Fund (NOF) aims to contribute to job creation, especially among the youth, through stimulating the development and growth of Oman’s SME sector.

The growth 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.

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 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.

Investors and Funders

GroFin SGB Fund - Egypt

GroFin SGB Fund Client – Infinity Group

The GroFin Small and Growing Businesses (SGB) Fund was set up in 2014 to serve as a commercially orientated vehicle to provide development assistance, as well as start-up and early stage growth-capital needed to develop sustainable small and growing businesses in Africa.

Egypt demonstrates strong potential to scale as part of the SGB Fund which is continuing its growth momentum across Africa. We recognise the significant opportunity in Egypt, especially after it has embarked on its ambitious economic reform plan, and we are currently studying venues to grow our offering in this exciting market.

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.

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.

Investors and Funders

What Nomou Entrepreneurs Say

“GroFin became our partner when banks refused our loan applications. We were short of experience, but we found all the support we needed in GroFin. They were there to help us with everything from planning to marketing and sales.”

Sobhi Al ZubiNomou Jordan Fund Client–Arabella Extrusion Co.

“GroFin’s financial and business support resulted in extending our geographical coverage, increasing our number of products from 12 to 25, hiring new employees, and growing sales by over 15% annually”

Raed SabobaNomou Jordan Fund Client–Saboba - Al-Mutamayeza for Frozen Food Trading

“We are extremely appreciative of GroFin’s close engagement with us in understanding the Iraqi market. The business support we received from GroFin helped with our vendor qualification and to diversify our services and our capabilities on the ground.”

Hesam LabadiNomou Iraq Fund Client–Al Majal Technical Services

Islamic Finance

The Nomou Programme is committed to supporting the local economy and taking the entrepreneur experience to the next level by offering Islamic finance products to cater to this emerging sector, thereby supporting growth and economic development.

Murabahah is the most widely used financing option in the world among all Islamic financing options. Murabahah cannot be used to fund working capital but only for the purchase of goods. However, the goods could be Sukuk and/or Shariah compliant bonds or securities in the stock market whereby the client can liquidate it on the spot and use the funds for his working capital needs.

Murabahah Product Financing

Murabahah is not a cash loan; it is a contract of sale of a specific commodity whereby the mark-up over the commodity is disclosed to the client. This Shariah compliant product allows GroFin to extend financial services to a client by purchasing the commodity for and on behalf of a client at a fixed mark-up, which can be repaid under agreed terms and over an agreed period.

Local Partners

The Nomou programme develops partnerships with credible local trade groups, government ministries, development agencies, and large organisations with extensive supply chains and other local SME stakeholders. These partnerships help the programme to achieve its mission by providing best in class services focused on supplying access to finance and market linkages to start-ups as well as growing SMEs. And by increasing the capacity of entrepreneurs and their businesses, the programme is developing supply chains and helping to create much-needed employment.

Moreover, the in-country network of business associations, accountants, SME consultants and SME focused banks, further the programme’s efforts to provide comprehensive business support services to SMEs and help to generate a steady flow of qualified entrepreneurs seeking our integrated support solution.

The Nomou Programme

Impact and Investments

Nurturing SMEs in MENA

Nomou Programme Funds

Visit NJF Website

Investors and Funders

Nomou Iraq Fund (NIF)

Northern Iraq Investments (NII)

Investors and Funders

Investors and Funders

Investors and Funders

What Nomou Entrepreneurs Say

Islamic Finance

Murabahah Product Financing

Local Partners

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