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UNRWA microfinance loans help entrepreneurs in Syria grow their businesses

29 March 2019

The UNRWA microfinance programme provides a growing number of loans to Syrians and Palestine refugees in Syria. In 2018, 11,000 people received loans to support their businesses or cover unforeseen expenditures. Such loans are provided with support from our donors, including the European Union. UNRWA operates one of the region’s most robust microfinance programmes. In 2019, UNRWA aims to resume microfinance activities in areas of spontaneous return such as Sbeineh, Qabr Essit and Khan Esheih refugee camps. By providing consumer loans, business loans or youth and women focused loans, UNRWA will stimulate livelihood activities in recovering areas. To date, UNRWA loans have made a significant impact in the lives of people working to earn a living. This support allows them to start or continue to grow their businesses during times of socioeconomic hardship.

Ra’ed Imad opened his dress shop in Jaramana, near Damascus, 14 years ago. He took out his first loan in 2007, for 15,000 SYP, approximately US$ 300 USD at the time, to allow him to expand his business. In 2011, just before the start of the conflict, he sold 100 dresses a year and moved to a large showroom. But as the conflict continued, revenue from his business decreased – he currently sells around 60 dresses a year - and he could no longer afford the rent. © 2019 UNRWA Photo by Taghrid MohammadRa’ed has taken out 12 UNRWA loans so far, the latest for 400,000 SYP, around US$ 1,000. He uses these loans to purchase tulle and other fabric, as well as sequins. He makes these purchases in the winter when business is slow, and pays off the loans after the summer wedding season. “Thankfully people still get married, despite the crisis, but they do not spend as much on a dress as they used to,” he says. © 2019 UNRWA Photo by Taghrid MohammadAhmed Dreim used to run multiple thriving businesses, including a supermarket, in Ein El Tal camp near Aleppo. But the conflict in Syria changed all that; he was forced to flee in 2012. “I started in Latakia with nothing,” he says. “We left our home with only the clothes on our back. It took me some time to stand on my feet,” he says. He managed to start a supermarket in the camp and took out a SYP 100,000 (US$ 200) SYP loan with UNRWA in 2017. This allowed him to buy more produce to fill up his shelves, A year later, Ahmed Dreim took out a second loan, for double the amount, 200,000 SYP. This financed his move to a seaside property, where he has been able to rent out adjacent shops. With his supermarket booming, he intends to convert the second space into a water pipe workshop, where he will be able to produce water pipes and carry out repairs. © 2018 UNRWA Photo by Fernande van TetsWhen Shareen Samra wanted to start a farm in 2013 to grow tomatoes, aubergines and peppers, nobody would give her any money. Luckily, UNRWA was willing to support her. “I started with a very small loan, of US$ 420, just to buy some seeds, plastic bags to pot the saplings and fertilizer. The first year, I grew 2,000 saplings. Every year, my business grows. I invest the loans, as well as the profits from my business.” Now, in 2018, she has 10,000 saplings and is on her 6th loan. © 2018 by Fernande van Tets“The microfinance loans that UNRWA provides give me security – farming is seasonal and I often have to invest in material when money is low. The loans allow me to bridge the gap,” says Shareen. The income from her business supports has allowed her to support her husband, a taxi driver, fulfill his dream of purchasing his own vehicle and further increase the family’s income. © 2018 UNRWA Photo by Fernande van TetsSabah Saleh al Hussein from Jaramana camp was displaced by the conflict. In 2016, the family moved into a new neighbourhoud, to decrease living costs. “We were living hand to mouth” she says. So she decided to start selling women and children’s clothes store from her home. She took out a microfinance loan from UNRWA for 20,000 SYP (25 USD). “I spent it on inventory” she says. In October 2018 she took out her 6th loan, for 200,000 SYP. © 2019 UNRWA Photo by Taghrid Mohammad“I have 6 people living in this house, and I am the main breadwinner,” Sabah says proudly. The extra income from her clothes business has allowed the family to buy a washing machine, a TV and stoves to heat her home. “I offer personal service, and cheaper prices than you can find in the shops,” she says of her success formula. © 2019 UNRWA Photo by Taghrid MohammadFadi Hassan used to run a food shop in Yarmouk camp, but when the camp was destroyed he moved to Sweida. “We had to start all over again,” he says. UNRWA gave him a micro loan in order for him to get back on his feet and open a new business. “My first loan was for 400,000 SYP (US$ 1,000), which allowed me to buy stock for my shop. Things are much better now and my business is growing.” © 2018 UNRWA Photo by Fernande van TetsYazan Ismael Maari used to run a laundry shop outside of Ein El Tal camp, near Aleppo. But in 2014, he was forced to flee. His home was destroyed, and his shop too, with almost half his equipment. His cousin was living in Latakia camp and told him about a good location for a shop and so he, his wife and their four children moved. © 2018 UNRWA Photo by Fernande van TetsYazan opened this laundry shop in 2015. A year later, after being approached by UNRWA microloan officers, Yazan applied and got a loan for 100.000 SYP. “My shop was already doing well but it allowed me to buy products I need, like detergent and dye, in bulk, which is cheaper. Thus my profit margin increased,” he says. He paid off his loan over an 8 month period, and his business continues to thrive. © 2018 UNRWA Photo by Fernande van Tets