The Labour Fund ‘Tamkeen’ signs a partnership agreement with several leading banks in Bahrain with plans to launch the Solar Financing Scheme as part of Tamkeen’s Tamweel Scheme to empower enterprises and enable them to purchase solar energy panels to generate energy which in turn will help them reduce their costs.
The partnership comes as part of Tamkeen’s strategic efforts emphasizing the impact of its Tamweel scheme as it encourages the transformation to renewable energy while reducing energy expenditures.
Tamkeen: Supporting enterprises in the private sector and enhance their productivity through relying on renewable energy
The Chairman of Tamkeen Shaikh Mohammed bin Essa Al-Khalifa commented on this partnership stating: “This step is aligned with Bahrain’s Economic Vision 2030 and the Kingdom’s Sustainable Development Goals. This support is going to encourage enterprises to use renewable and clean energy, which will help them reduce their costs, allowing them to focus on expansion.”
During the signing ceremony the Chief Executive of Tamkeen Dr. Ebrahim Mohammed Janahi pointed out the importance of this step, describing it as a strategic one that will bring Bahrain closer towards achieving its Sustainable Development Goals and promoting positioning it as a leading nation within the region.
He adds that this support will create more opportunities in the field of renewable energy, and it will also help in reducing costs, allowing enterprises to shift their focus on growth.
The scheme covers the costs of the solar energy panels and is compliant with the Islamic Sharia within a competitive rate since Tamkeen supports 70% of the annual profit rate.
The amount of funding ranges between 5,000 BHD and 500,000 BHD with a repayment period of up to 10 years, and a grace period that’s subject to the terms of the bank.
Dr. Mirza: The partnership contributes to achieving 5% of renewable energy by 2025
Dr. Abdulhussain bin Ali Mirza, the President of Sustainable Energy Authority expressed his appreciation and gratitude towards Tamkeen and the participating banks for this partnership to implement this financial scheme and providing financing facilities that will encourage companies, small, medium, and large enterprises to embed sustainable and clean energy projects. “We at the Sustainable Energy Authority are happy to be part of this initiative which will help achieve the Kingdom’s Sustainable Development Goals,” he stated.
He adds that signing this agreement will contribute to achieving the national goals adopted by the government to reach 5% of renewable energy from the total energy by 2025 and 6% of improving energy efficiency.
Bahrain Association of Banks: This partnership supports our direction towards promoting “Green Loans”:
Dr. Waheed AlQasim, the CEO of Bahrain Association of Banks stated that this partnership brings together the private sector to collaborate and work on the Kingdom’s strategic goals, especially since it’s aligned with the bank’s direction towards promoting “Green Loans”, which are targeted towards environmentally friendly businesses, encouraging customers to make optimal use of natural resources.
Dr. AlQasim said: “This initiative by Tamkeen to provide these kinds of loans could also help increase the number of banks that will provide support towards businesses with solar energy projects.”
Abdulhakeem Al Khayyat: Kuwait Finance House will provide a variety of financing schemes for enterprises
According to the Managing Director & CEO Abdulhakeem Al Khayyat, signing the agreement with Tamkeen seeks to provide new financial solutions to support SMEs, stating that this new Solar Financing Scheme was added to the list of programs offered in conjunction by KFH and Tamkeen in the Financing and Entrepreneurship sector in the Kingdom of Bahrain.
Al Khayyat expressed his enthusiasm for signing this agreement stating: “The scheme will be supporting innovative solutions that are using clean energy. This strategic partnership with Tamkeen is aligned with the government’s directions towards diversifying renewable energy sources and achieving the Sustainable Development goals which is part of the Kingdom’s Vision 2030.”
Al Khayyat also states that this partnership will open the doors for further collaboration between KFH and Tamkeen in the foreseeable future, adding that KFH will provide a variety of financing schemes for enterprises.
CEO of Ithmaar: We’re committed towards supporting the economic growth of Bahrain
The CEO of Ithmaar Bank Ahmed Abdulraheem said: “We are happy to sign the agreement of the Solar Financing Scheme with Tamkeen as part of our financing schemes for enterprises. We at Ithmaar Bank are committed towards supporting the economic growth of Bahrain, especially when it comes to solar energy initiatives that are environmentally friendly and sustainable.”
He also adds: “Ithmaar Bank is determined to become one of the leading banks in retail within Bahrain. We’re dedicated towards playing an effective role within the community and we’re always on the lookout for opportunities where we can contribute in helping the community.
“We’re aware of the important role we must play to help develop solar energy and that we need to have an effective presence in conserving energy and spread guidance on its consumption to benefit the future generations.”
Khaleeji Commercial Bank: We will strive to make this project a success by encouraging our customers
Sattam Al Gosaibi, the CEO of Khaleeji Commercial Bank commented on the agreement stating: “I would like to thank Tamkeen for this national initiative which comes in line with our aims of achieving our societal commitment to provide the appropriate environment for developing new economic sectors. We are proud to be part of this initiative which will have many positive implications, not only at an environmental level but also on at a commercial level as companies are going to adopt clean energy within their operations. This will definitely develop this industry and will help support the national economy.”
He also adds: “We will strive to make this vital project successful by encouraging our customers to be active and take proactive measures to invest in this project which will create successful and sustainable businesses.”
According to Al Gosaibi, this project will reflect on the profitability of business owners by reducing the operational cost of their projects related to the amount of energy used, in addition to the value of the monthly financial obligations on financing. “Tamkeen supports 70% of the annual profit rate, which is considered an effective support to encourage the trend towards renewable energy and provide success factors for it,” he said.
Al Baraka Islamic Bank: This step is in line with the bank’s approach of encouraging and financially supporting clean and sustainable energy
The CEO of the Al Baraka Islamic Bank Hamad Aloqab commented on the partnership stating: “This step is in line with the bank’s approach of encouraging and financially supporting clean and sustainable energy in Bahrain.”
He also adds that it’s part of their sustainable programs that Al Baraka is implementing reflecting the United Nations 2030 Sustainable Development Goals.
Hassan Jarar the CEO of Bahrain Islamic Bank commented on the partnership stating: “We’re pleased to be signing this partnership with Tamkeen which aims to provide enterprises registered in Tamkeen’s program with financing solutions and competitive prices for the purchase and installation of solar panels for power generation.
“We look forwards to this fruitful partnership which will encourage institutions and companies in the Kingdom to adopt sustainable energy to achieve the UN’s Sustainable Development Goals by 2030 and contribute to the growth and development of Bahrain on a wider scale.”