IDB has approved US$ 10 million participation in the equity capital of IRADA Microfinance Institution, Sudan, a Project promoted by Bank Al Khartoum, the largest bank in Sudan, which will subscribe to 70% of the shares in IRADA. IRADA is proposed to be a full-fledged Islamic microfinance institution having a paid-up capital of SDG 140 million (US$ 50 million) and will provide competitively priced Islamic microfinance products to individuals, families, social groups and other microfinance agencies in Sudan. It is expected that IRADA will benefit 325,000 clients in the first five years of its operation. Market study for Islamic microfinance in Sudan has revealed that there is huge demand for Islamic microfinance products in the country and current market players, majority of which are NGOs, are barely catering to 1-2 percent of the potential market, which remains largely untapped. Given the strong demand for microfinance, Bank Al Khartoum has already provided over US$ 42 million in microfinance to more than 90,000 beneficiaries under the ‘Al-aman’ microfinance fund - SDG 200 million microfinance fund subscribed by 32 local banking institutions and Sudan’s Diwan-az-Zakat. The Project is in-line with the Government of Sudan’s ‘National Vision for Microfinance’ and will facilitate implementation of Central Bank of Sudan’s policy directive which states that all commercial banks in the country must allocate at least 12 percent of their credit portfolio for funding Islamic microfinance. The project is also in-line with IDB’s vision and mission of ‘comprehensive human development’ and strategic thrusts relating to ‘Alleviate poverty’ and ‘Prosper the people’. The Project will be a milestone achievement under the IDB Microfinance Development Program (IDB-MDP). The Central Bank of Sudan has already issued a license for the institution and currently IDB and Bank Al Khartoum are engaged in drafting the shareholder’s agreement.