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Tamkeen (Labour Fund) has announced the extension of its 'facilitated support financing programme' in partnership with the Bahrain Development Bank (BDB) to strengthen SMEs and entrepreneurs with financing to broaden their activities and business growth.
The programme, which has met with an excellent response since its launch in 2008, has approved nearly BD9 million, so far to 400 Bahraini SMEs and is seen by Tamkeen and the BDB as a vital link in the expansion of SMEs and entrepreneurs' roles in the transformation of Bahrain and for working towards the leadership's Vision 2030 goals of high living standards and prosperity for all Bahrainis.
The two agencies have also agreed to double the funds available for the programme from BD10 million to BD20 million to meet the growing needs of entrepreneurs and SMEs.
The agreement states that the bank will provide overall financing of up to BD20 million executed over a period of two years, under the facilitated support programme for small and medium sized enterprises.
The project is initially targeting 900 enterprises in various sectors and financing begins at BD 5,000 as a minimum to reach BD250,000 dinars as a maximum, in accordance with Islamic Sharia, with a 'Murabaha' rate of four per cent, of which Tamkeen bears two per cent. In addition, a grace period ranging from three months to two years is to be granted, and a repayment period of up to 10 years (See table).
"Tamkeen believes in supporting SMEs which are the engines of growth in all long-term plans for national prosperity and which tap the innovation and entrepreneurial flair of Bahrainis and harness them for national development," said Tamkeen's chief executive Abdulellah Al Qassimi.
"Along with providing leadership development, training for employees, and restructuring consultation, designing appropriate financing projects has been a core function of our resource development at Tamkeen.
The Tamkeen-BDB partnership is a successful example of such financing and with the BD20 million that we have set aside for this project; we want to include more SMEs and first-time entrepreneurs in the cycle of growth and success."
Sector No. BD
Construction 59 1,350,530
Manufacturing 56 1,353,086
Retail Establishment Trade 194 4,122,870
Transport, Storage & Communications 37 978,850
Education Institutions 8 153,000
Healthcare 1 25,000
Tourism (Hotels & Restaurants) 16 380,500
Others 29 534,200
Total 400 8,898,036
