The Labour Fund Tamkeen and Khaleeji Commercial Bank (KHCB) have signed a partnership agreement to manage a financing portfolio worth BD30 million ($79.5 million) as part of Tamkeen’s Business Development “Tamweel+” Scheme.

The program comes in line with the enterprise support efforts to help boost economic growth in the kingdom as well as the private sector.
 
It provides financing solutions for projects whose capitals range between BD 1 million ($2.6 million) and BD 2.5 million ($6.6 million) with financing for investment, expansion or diversification purposes, where they are entitled to a long term repayment period of up to seven years. This aims to support medium and large enterprises (SMEs) and assist them in addressing the most crucial challenges they face during their various development stages. Furthermore, Tamkeen will subsidise 70 per cent of the annual nominal profit rate (capped at an 8 per cent reducing balance).

Tamkeen’s chief executive, Dr Ebrahim M. Janahi, welcomed the expansion in “Tamweel+” and stressed the pivotal role of banks participating in this portfolio, including Khaleeji Commercial Bank, one of the leading Islamic banks in Bahrain.

Dr. Janahi pointed out that “Tamweel+” is one of the significant projects that contribute in boosting the private sector, with Bahraini enterprises of regional and international reach.

“This contribution ultimately emphasises Bahrain’s position as a commercial hub, and a leading economic centre, especially in non-oil sector, paving the way for economic expansion in light of the international economic transformation,” he added.

Tawfeeq Mohamed Bastaki, chief risk officer and acting chief executive officer of KHCB, said: "At KHCB, we prioritise our responsibility towards the success of policies that aim to promote economic growth, maintaining monetary stability, developing the private sector’s financing mechanisms, providing bank credit in the necessary amounts with suitable conditions to achieve targeted growth, financing investment, as well as providing an appropriate environment that maintains economic stability. From this viewpoint, the partnership was signed.”

He continued: "We are proud of the progress achieved by the medium and large enterprises in the Kingdom thanks to Bahrain's fertile business environment and many unique opportunities. Tamkeen is one of the primary pillars that contributed to this accomplishment.”

KHCB and Tamkeen had signed an agreement earlier to increase facilitated financing options for SMEs in Bahrain through Tamkeen's financing program. This agreement aimed to provide the beneficiaries of Tamkeen’s program with more opportunities through a number of partner banks in Bahrain in order to help enterprises, especially small and medium-sized ones to obtain the capital needed to implement their development plans and diversify their products and services. - TradeArabia News Service