Tamkeen-BMI Bank extend key scheme
Manama, July 15, 2014
Bahrain's labour fund Tamkeen and BMI Bank, a subsidiary of Al Salam Bank Bahrain, have announced an extension of their partnership providing sharia-compliant financing to local enterprises.
This marks the fourth contribution of BD10 million ($26.3 million) by BMI Bank, expanding its portfolio to a total of BD40 million while the total value of the scheme is BD302 million, said a report in the Gulf Daily News (GDN), our sister publication.
Initially launched in November 2010, the joint scheme offers small and medium enterprises (SMEs) including startups, a suite of financial products at a competitive cost.
Under the scheme, which is run through several banks including BMI Bank, Tamkeen guarantees 50 per cent of the total financing amount and subsidises 50 per cent of the profit payments due from customers.
Enterprises are eligible to receive financing ranging from BD10,000 to BD500,000.
Since its launch, the scheme has enabled more than 5,172 firms to obtain the capital required for developing and promoting their activities, of which 1,553 are startups.
As of May this year, more than 167 firms have taken advantage of the scheme between Tamkeen and BMI Bank.
"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 BMI Bank," Tamkeen vice-president for private sector support Mohammed Ali Bucheery said.
"This will allow SMEs and entrepreneurs to acquire flexible finance solutions.
"Corporate finance plays a key role in filling the finance gap faced by SMEs.
"In addition, this scheme urges corporations to finance their growth plans," he added.
BMI Bank director and chief executive Jamal Al Hazeem said a characteristic of a flourishing and fast-growing economy is a thriving SMEs sector.
"We, at BMI Bank, feel extremely gratified to be able to participate in creating a better environment for SMEs to thrive in and contribute to the process of nation building," he added.
All corporations with valid commercial registrations in the kingdom can apply to benefit from the scheme, which also features repayment options of up to 10 years with a grace period up to two years according to finance procedures. - TradeArabia News Service