2. It is recommended to establish a financing venture affiliated
to ICYEN which will cater for the funding needs of promising
businesses of OIC young entrepreneurs
Islamic Development Bank (IDB) is in negotiation with ICYEN
to become the financing partner of YESF for the US$30m
financing facility
Tasks of the ICYEN Board of today is to resolve on:
◦ Authorising a mechanism to implement the entire formation of the fund,
partnership with the IDB and arrangements with agent banks in respective
OIC member countries
◦ Selection and approval process of the financing facilities to be provided to
entrepreneurs
3. Young entrepreneurs are facing some of the
below challenges when raising finance for
their projects:
◦ Lack of track record
◦ Unavailability of audited financials
◦ Deficiency of networking with international financial
institutions
◦ Unavailability of long term (5 year +) and low cost
financing by local financiers
◦ Following the financial crisis, banks limited the
small business financing products as well as
strengthening their risk assessment approaches.
4. Priority sectors of financing: agriculture,
healthcare, education, ITC, and consumer
services
Financing amount per project: ranging
between USD100,000 to USD3m
Fostering transparency, competitiveness and
enhanced use of and awareness of Shariah
compliant businesses and financing schemes
5. Proposed Approval Scheme:
a) An entrepreneur applies to the YESF with the
requisite formalities
b) If the application passes the eligibility
criteria, the application is passed on the
Investment Committee of YESF
a) If approved by the IC, the final approval is to be
issued by the ICYF-DC
6. To be comprised of 7 members
Members of the Investment Committee of YESF
shall include the Executive Director of ICYEN,
ICYEN coordinator for the YESF, a representative
of IDB and 4 members appointed by ICYF among
the applicants from the OIC member countries
with below minimum requirements:
◦ Professional experience: 3 years of financial
management experience
◦ Education: Masters Degree
◦ Experience in Islamic financial instruments
7. Legal formation of the fund
MoU with IDB
MoU with agent banks
Action plan of the Fund to be presented to
the next ICYEN Board