The foundation was established in 1996 as a pilot project by Save the Children USA and the Women's Health Improvement Association (WHIA) to support Egyptian women in setting up and expanding their microenterprises. Over time, the project grew and in 2003, it became an independent program under the legal umbrella of WHIA. In 2009, Al Tadamun Microfinance became an independent foundation under the Ministry of Social Solidarity, and in 2015, it came under the supervision of the Financial Regulatory Authority. The foundation aims to meet the financial needs of underprivileged women micro-entrepreneurs.