Tamkeen has signed an agreement with Bahrain Development Bank (BDB) to add BD10 million ($26.1 million) to its enterprise financing portfolio as part their joint objective to ensure the availability of low-cost financial solutions for SMEs in the kingdom.

 

This comes under the framework of Tamkeen’s SME financing programme. It is being offered by Tamkeen through a number of leading local banks, including BDB, whereby Tamkeen subsidises 50 per cent of the profit on the loan amount.

 

With the agreement, the total value of BDB and Tamkeen’s Enterprise Financing Portfolio has risen to BD110 million, and the number of beneficiaries is expected to reach around 3,760.

 

The agreement will also bring the total value of Tamkeen’s Enterprise Financing Portfolio to BD220 million, said a senior official. 

 

To date, more than 5,200 enterprises in Bahrain have been able to get much-needed capital to finance their development and growth through the programme, nearly 1305 of which are business start-ups.

 

The joint enterprise financing portfolio between Tamkeen and BDB has served 3,410 businesses alone as of February 2013, with another 350 expected to benefit from the announced increase in the portfolio.

 

Tamkeen’s senior manager for private sector support Mohammed Bucheery said, "In line with Tamkeen’s objective to support the private sector and to enhance growth, development and sustainability, we are pleased to continue our successful partnership with BDB to provide more opportunities for SMEs and entrepreneurs in Bahrain with access a wide range of flexible financing solutions."

 

"The Enterprise Financing Portfolio has been instrumental in bridging the financing gap previously faced by SME’s through providing financial support that enables institutions to fully fledge their development strategies and plans," he added.

 

BDB chief executive officer Nedhal Saleh Al Aujan said the increase in the finance portfolio reflects the success of its strategic partnership with Tamkeen on the level of funding and the development of SMEs as well as improving the performance of these businesses, which makes up more than 90 per cent of businesses in the Bahraini market.

 

"This agreement also reflects the success and accessibility of the funding programme to the various businesses in industry and service sectors," he added.-TradeArabia News Service