Established in 1978 as a public shareholding company One of the fastest growing banks in Jordan; grew at double or triple the market rate over the last 3 years Growth Rate (BaE vs. Total Market) About Bank al Etihad Deposits (Aug) Total Market2.40%10.51%5.55% BaE9.16%27.34%12.34% Facilities (Aug) Total Market12.40%6.30%1.34% BaE17.00%19.60%7.41%

Traditionally a strong corporate bank Strategic direction to diversify into certain segments of Retail Launched major rebranding campaign in 2011 and completely revamped branch environment and experience. Strategic direction to grow in SME, today SME deposits constitute around 4.5% of total bank deposits, SME credit facilities make around 8% of total facilities. Plan to increase SME to constitute 20-25% of portfolio in the next 3-5 years.

100,000+ SMEs in Jordan 97% of all companies in Jordan are SMEs SME contribute 50% or more of GDP Employ 60% of the Jordanian workforce Account for 70% of new jobs and 45% of exports Despite the importance of SMEs to the economy, there is still a large financing gap: Total current financing for SMEs is estimated at USD 2 billion SME financing gap is estimated at another USD 2-3 billion SME in the Economy: Facts and Numbers

Access to Finance: Loan Guarantee Programs SME Finance Facilities and Programs Access to Information: Credit Bureau SME Financial and Nonfinancial Advisory Services Access to Markets Legal and Regulatory Framework Movable Asset Registry, Securitization Laws… While Jordan has made significant strides within each enabler, certain challenges remain. Ecosystem /Key Enablers

Government Programs and Initiatives Central Bank of Jordan OPIC IFC EBRD World Bank EIDB Recent Focus on SME in Jordan

Loan guarantee programs are currently offered to banks through 2 main organizations: Jordan Loan Guarantee Corporation (JLGC) Overseas Private Investment Corporation (OPIC) Loan Guarantee Programs in Jordan

JLGC and OPIC programs were both successful in catalyzing SME financing in Jordan Tangible benefit for SME clients through reduction of collateral requirements; addressed one of largest obstacles facing SMEs Increased financial awareness and understanding among SMEs through numerous training workshops Continuous outreach to bank staff to offer additional services and support (e.g. staff training, marketing materials) Loan Guarantee Programs: Successes

Created successful linkages between banks and SME clients through conferences and other events Joint client visits to provide comprehensive solutions to SMEs (financing and guarantee) Better information about SME clients through JLGC and OPIC database

Maximum guaranteed amount per client through all banks is low (JD 100,000) – JLGC Increase loan guarantee amount for critical sectors to match Industry Loan guarantee is non-transferable between banks, restricting freedom of choice for clients Operating on case by case basis Loan Guarantee Programs: Challenges

Sharing other collateral in event of default could stop further expansion with client – JLGC Concern regarding confidence in payment in event of default High commission rate restricts goal of reducing cost of borrowing for SMEs

CBJ has provided continuous and sustained support to SMEs through various financing programs MSME Finance Facility enabled banks to reach new sectors/segments they could not previously reach Medium-Term Finance Facility was successful in facilitating financing for the manufacturing, tourism, and renewable energy sectors at preferential rates and flexible terms for SME clients SME Finance Facilities: Successes

SME financing needs to be sustainable Concept of risk based pricing Currency of lending programs Amount of funding available to banks is small compared to market demand Certain programs offer financing facilities in foreign currency Medium-Term Finance Facility (through CBJ) is limited to 3 sectors (tourism, manufacturing, and renewable energy) SME Finance Facilities: Challenges

Established dedicated SME banking department Entered into partnership with IFC to design and implement a new SME strategy Created specialized SME business centers to service all client needs Team Offers financial and non-financial solutions and services; 360-degree approach to SME banking Bank al Etihad and the SME Sector

One of the first banks to join the OPIC loan guarantee program BaE has the largest portfolio of OPIC-guaranteed loans Recently updated partnership with JLGC through new agreement targeting SMEs Fully utilized allocated portion of MSME Finance Facility (World Bank/CBJ) In discussions to enter new partnership with EBRD

Bank al Etihad recently launched its first annual SME Awards to recognize and reward SMEs and entrepreneurs 3 Award categories:  Best SME (JD 25,000)  Business Woman of the Year (JD 25,000)  Best Startup (JD 10,000) 4 main evaluation criteria:  Financial Strength/ Sustainability /Creativity /Social Impact Winners announced in awards ceremony on 18/11/2014 Bank al Etihad SME Awards

The Awards Ceremony

12 Finalists (4 in each category)

25% of businesses in Jordan are women-owned Only 5% of women-owned businesses are well-served by banks Financing gap of for women-owned business While unemployment rates are higher among women, more than 55% of all unemployed women are educated Enhancing women’s participation in the national economy directly impacts Jordan’s economic growth Why is BaE targeting Women?

45% of Bank al Etihad team are women Women representation in top management Band values and culture Equal rights and benefits Member of GBA

BaE recently announced the launch of its Shorouq Program: Comprehensive banking solutions and non-financial services specifically designed for women across Jordan Targets women in various segments: employees/professionals, business owners (SMEs), entrepreneurs, and in financial planning Seeks to support women in gaining access to funding, knowledge and markets Online portal launched as an advisory/networking tool for women BaE is a member of the Global Banking Alliance for Women (GBA) How does BaE support Women?

Please visit: