MANAMA: Tamkeen and Khaleeji Commercial Bank (KHCB) have signed a partnership agreement to manage a financing portfolio worth BD30 million as part of Tamweel+ business development scheme.
Under this Tamkeen programme, financing for investment, expansion or diversification purposes is provided with a long-term repayment period of up to seven years.
Projects with a capital ranging between BD1,000,000 and BD2,500,000 are eligible to seek financing under the Tamweel+ scheme.
Its aim is 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 8pc on a reducing balance basis).
The labour fund authority’s chief executive Dr Ebrahim Janahi welcomed the expansion in Tamweel+ and stressed the pivotal role of banks taking part in this portfolio, including KHCB, one of the leading Islamic banks in Bahrain.
Calling Tamweel+ as a significant project that contributes in boosting the private sector, by fostering Bahraini enterprises of regional and international reach, he said, “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.”
KHCB’s chief risk officer and acting CEO Tawfeeq Mohamed Bastaki 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.”
“We are proud of the progress achieved by 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.
The earlier agreement aimed to provide Tamkeen’s beneficiaries with more opportunities through a number of partner banks in Bahrain in order to help enterprises, especially SMEs to obtain the capital needed to implement their development plans and diversify products and services.