Tamkeen announced an increase in its flagship Finance Scheme portfolio with a number of partner banks, including BMI Bank, a subsidiary of Al Salam Bank – Bahrain, and Bahrain Development Bank (BDB) providing Sharia-compliant financing for enterprises within the local private sector to fulfill their financial needs at a competitive cost.
Initially launched in November 2010, the joint scheme offers a suite of Sharia-compliant financial products aimed at small and medium enterprises including startups, as part of Tamkeen’s finance scheme for the private sector.
As for the Bahrain Development Bank, the new increase will expand the total portfolio to BD 140 million. To date, over 4440 establishments have taken advantage of the Finance Scheme between Tamkeen and BDB.
As for BMI Bank, the new agreement marks the fourth contribution of BD 10 million made by the Bank expanding the total portfolio to a total of BD 40 million. As of May 2014, over 167 establishments have taken advantage of the special scheme between Tamkeen and BMI Bank.
The total value of Tamkeen’s Finance Scheme so far has reached a total of BD 302 million.
Tamkeen’s Finance Scheme offers financing through several leading Banks in Bahrain; Tamkeen guarantees 50% of the total financing amount as well as subsidises 50% of the profit payments due from customers. Through this financing scheme, enterprises within the private sector are eligible to receive financing ranging from BD 10,000 to BD 500,000 to help design a higher growth trajectory for their companies.
Since its launch, Tamkeen’s finance scheme has enabled over 5322 establishments to obtain the capital required for developing and promoting their activities, of which 1553 are startups.
Through Tamkeen’s Finance scheme to small & medium enterprises including startups, Tamkeen promotes a strong culture of corporate finance which helps in bridging the gap that is seen in procuring finance by the sector. Additionally, Banks participating in Tamkeen’s finance scheme play a major part in bolstering corporations within the private sector, which ultimately enhances the private sectors capacity and capability as a major contributor towards the national economy.
Commenting on this occasion, Tamkeen’s Vice President – Private Sector Support, Mohammed Ali Bucheery said:
“As part of Tamkeen’s goals towards fostering the growth and promotion of the private sector, we are glad to continue our successful partnership with our partner banks, to offer further opportunities for small & medium enterprises and entrepreneurs in the Kingdom of Bahrain. This will allow them to acquire flexible finance solutions. Corporate finance plays a key role in filling the finance gap faced by small & medium enterprises. In addition, this scheme urges corporations to finance their growth plans”.
All corporations with valid commercial registrations in the Kingdom of Bahrain can apply to benefit from Tamkeen’s finance scheme. The finance value ranges between BD 10,000 – BD 500,000. In addition, there are flexible repayment options up to 10 years with a grace period up to two years according to finance procedures. For further information, as well as a detailed list of the application processing requirements, please visit www.tamkeen.bh
