Tamkeen signed an agreement with the Bahrain Islamic Bank (BiSB) under which it will add BD10 million to its Enterprise Financing Scheme, which it offers in partnership with leading financial institutions in the Kingdom. The additional funds raise the total value of the scheme’s financing portfolio to BD169.5 million.
The signing ceremony was held, at Tamkeen’s offices and attended by Tamkeen Chief Executive Mr. Mahmood Hashem Al-Kooheji, CEO of BiSB Mr. Mohammed Ibrahim Mohammed, and a number of senior officials from the two organisations.
The agreement is part of Tamkeen's effort to provide the necessary financial support for private sector enterprises to grow, prosper, and contribute to the national economy.
As per the scheme, Tamkeen subsidises 50% of the total finance by paying 50% of the annual profit of the finance amount, which ranges between BD5,000 up to BD500,000 repaid over a period of up to 10 years, with a grace period of between one month and two years, at the discretion of the bank.
As of end of December 2011, more than 3,000 enterprises have benefited from the Enterprise Financing Scheme with a total financing amount reaching BD109 million.
Commenting on the agreement, Mr. Al-Kooheji said: "The Enterprise Financing Scheme bridges the financing gap that often hinders the growth of private sector companies, especially small and intermediate enterprises. Based on thorough studies to assess the market’s funding needs, Tamkeen designed an integrated and comprehensive package of funding options with simple terms conditions to ensure they are within the reach of all enterprises, regardless of their size or business activity."
Mr. Mohammed said in a statement, “We are pleased to continue our partnership with Tamkeen to offer financing to enterprise within the Kingdom. This latest signing adds another BD 10 million to the previous BD10 million agreement signed with Tamkeen in 2010, and confirms our ongoing commitment to support Bahrain’s private sector enterprises and bolstering national economic development.”
“We are steadfast in our dedication to the nation’s enterprises, as we consider it a national duty and something we take great pride in, especially as it directly furthers the development of hundreds of Bahrainis working in this sector and fuels job creation. We look forward to continue strengthening our partnership with Tamkeen to positively influence our community,” Mr. Mohammed concluded.
Tamkeen currently offers 14 financing programmes. Complementing the Enterprise Financing Scheme are a set of special funding programmes such as the ITC Financing Scheme, Micro-finance Scheme, and Princess Sabeeka bin Ibrahim Al Khalifa Women Entrepreneurship Portfolio.
In addition to the BiSB, Tamkeen offers its Enterprise Financing Scheme through Ithmaar Bank, Bahrain Development Bank, BMI Bank, Bahrain Saudi Bank, Kuwait Finance House, Khaleeji Commercial Bank, Standard Chartered Bank, the Family Bank, and Ebdaa Bank.
For an enterprise to be eligible to benefit from Tamkeen's financing program, it must also have a valid commercial registration, be based in Bahrain, and fulfilled the Bahrainisation quota stipulated by LMRA. Other terms and conditions may apply at the partner bank’s discretion.