StanChart-Tamkeen tie-up to offer Sharia solutions
Manama, January 16, 2014
Standard Chartered Saadiq and Tamkeen, Bahrain’s labour fund, have partnered to add Sharia-compliant solutions for trade and working capital needs to bank’s portfolio, a report said.
Through the enhancement, eligible beneficiaries of Tamkeen's enterprise finance scheme will be able to receive up to BD500,000 ($1.32 million) in financing, import finance and term finance for capital expenditures as well as letters of credit, guarantees and other services, reported the Gulf Daily News, our sister publication.
The murabaha financing offered by Standard Chartered Saadiq covers working capital, machinery and equipment financing at a subsidised profit rate of four per cent per annum on a reducing balance, with payment tenure of up to three years.
The bank said a range of first-to-market innovative products and services will be offered under the Islamic banking umbrella across the Standard Chartered network.
Under the enterprise finance scheme, which Tamkeen operates with a number of partner banks, the authority guarantees 50 per cent of the total financing amount and subsidises 50 per cent of the profit payments due from the beneficiaries.
"The finance scheme is a critical component of Tamkeen's overall strategy to provide businesses in Bahrain with accessible financing solutions," Tamkeen chairman and acting chief executive Shaikh Mohammed bin Isa Al Khalifa said.
"The scheme not only allows businesses to venture into new prospects and opportunities, but also provides an environment that encourages innovation and risk-taking."
Standard Chartered Bahrain chief executive Hassan Jarrar said the bank believed small and medium enterprises (SMEs) were key drivers of growth and job creation and the partnership with Tamkeen stemmed from that belief.
"Building the SMEs business is a strategic priority across our core markets and it is where we can powerfully demonstrate our distinctive contribution to the broader economy - how we are here for good," Standard Chartered Bahrain head of consumer banking Sandeep Bose said.
"The enhancement ensures that we continuously improve our product offering and confirms that our strategic partnership with Tamkeen has proved successful. – TradeArabia News Service