The Qatari Silatech Foundation and the GIZ have signed an agreement with the Al-Amal Microfinance Bank and Al-Kuraimi Islamic Microfinance Bank in Yemen calling for a youth saving program to create financial opportunities for tens of thousands of Yemeni young people, Gulf media reported.
A joint statement by the four partners was quoted as saying the program's main purpose was to enable young Yemenis, aged between 18-30, to build their fiscal assets and encourage them to start savings.
The initiative will enable Yemenis open 'young saver accounts' in any branch of the two banks across the republic of Yemen, the statement said.
The idea is expected to come into effect before the summer end this year, it added.
The saving accounts will be especially designed for young people, including privileges such as providing the lowest minimum opening balance under an optional mechanism, with a special focus on incentives to encourage the young to continue savings over a long time, it added.
Furthermore, the initiative is expected to encourage other financial institutions to help young people make savings to launch their businesses and arrange for their life needs, mainly marriage.
The idea will be marketed through an extensive promotional campaign aimed at the young people in Yemen to raise their awareness about saving and its profits, the statement continued.
The program will strengthen the partnership with media, educational facilities, youth organizations and the Yemeni microfinance network with the aim to raise the awareness among young people about the saving profits, according to the statement.
Young saver accounts have recently become one of the most important financial services in the MENA region as part of a group of programs backed by the Silatech and the GIZ.
Chief executive officer at the Silatech Tarik Yousef was quoted as saying the micro-savings are a tool which can contribute to the official fiscal system and then help limit economic trembles, reduce the income gap and ensure guarantees for lending for businesses start-up and development.