Al Bashaer Iraqi Organization for Microfinance was one among pioneer Iraqi Microfinance Institutions started working in the country. The focus of Al Bashaer operation has been Baghdad Province. The MFI started its operation amidst terrorism and insurgent attacks in the city. But Al Bashaer dis a great job by providing financial services to entrepreneur men and women to run their enterprises and improve the living and also contribute to building Iraqi economy. Main Challenges Al Bashaer is facing are security, enabling business environment, cost and easiness of doing business, product diversification, staff capacity, and legal and regulatory framework for microfinance.