Tamkeen, BisB launch $50m portfolio to back firms

29/05/2017 08:21 AST

Tamkeen, Bahrain’s labour fund, and Bahrain Islamic Bank (BisB) have inaugurated a BD20 million ($53.03 million) portfolio to support medium and large enterprises.

The scheme, under the Tamweel+ program launched by Tamkeen earlier this year, provides Sharia-compliant financing, with Tamkeen supporting 70 per cent of the annual profit rate capped at 8 per cent on reducing balance.

The financing amount ranges from BD1 million to BD2.5 million. The program also has several advantages, such as a long-term repayment period, in addition to granting enterprises the freedom to use the financed amount for investment and development or local and international expansion, including export and diversification of products and activities related to business, a statement said.

With the signing of this agreement, the portfolio of Tamweel+ reaches BD80 million. Dr Ebrahim Mohammed Janahi, CEO of Tamkeen, stated: "Tamkeen works hand in hand with its partners to achieve its objectives of meeting the needs of enterprises at their various stages of growth, in order to make the private sector a primary engine of national economy. We are pleased to expand our partnerships with banks, increasing the portfolio of Tamweel+ in cooperation with the Bahrain Islamic Bank.”

Hassan Jarrar, CEO of BisB, said: "Our collaboration with Tamkeen through Tamweel+ program is part of our persistent efforts to support medium and large enterprises that represent a significant proportion of the institutions operating in Bahrain, being an important driver of the national economy. We will remain committed to providing the necessary support to various programs and projects in the interest of the country and the citizen that will attain the desired benefits for all parties and in different business areas, wishing success for all.”

Tamkeen offers Tamweel+ in cooperation with a group of banks, in order to support medium and large enterprises in expanding their business and overcoming challenges by facilitating access to Sharia-compliant financing with competitive profit. The program was based on a study conducted by Tamkeen regarding the needs of private sector institutions in the kingdom, which revealed a gap in financing projects that exceed BD1 million.

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