The study aimed to identify the role of SWOT analysis in formulatingan effective Strategy for Microfinance Institutions (MFIs).Statistical analytical method and Multiple Regression through an electronic questionnaire form submitted to the sample consisting of 40 participants from MFIs is deliberated. The results of the study show that there is a significant statistical role of SWOT analysis represented by (strengths, weaknesses) in formulating an effective strategy for microfinance institutions, while there is no a significant statistical role of SWOT analysis represented by (threats and opportunities) in formulating the strategy. The study aimed to identify the role of SWOT analysis in formulatingan effective Strategy for Microfinance Institutions (MFIs).Statistical analytical method and Multiple Regression through an electronic questionnaire form submitted to the sample consisting of 40 participants from MFIs is deliberated. The results of the study show that there is a significant statistical role of SWOT analysis represented by (strengths, weaknesses) in formulating an effective strategy for microfinance institutions, while there is no a significant statistical role of SWOT analysis represented by (threats and opportunities) in formulating the strategy.