Bahrain's labour fund Tamkeen said it has signed an agreement with Bahrain Development Bank (BDB) to increase its enterprise financing portfolio by BD10 million to BD130 million ($343 million).

Tamkeen said it offers the finance scheme in partnership with various banks in Bahrain to support enterprises and contribute to their development and growth. The agreement was signed to meet the growing demand for Sharia-compliant financial solutions by SMEs.

Under the Finance Scheme, Tamkeen guarantees 50 per cent of the total finance, which ranges between BD5,000 and BD500,000, and subsidises 50 per cent of the profit payments by the beneficiary enterprise.

Commenting on the deal, Shaikh Mohammed bin Essa Al Khalifa, the chairman of BDB and Tamkeen and acting chief executive of Tamkeen, said: "The Finance Scheme is a key programme that Tamkeen launched to provide solutions to business owners wishing to develop their businesses. Since its launch, the programme has allocated BD262.2 million in cooperation with partner banks to provide finance for SMEs."

"This shows that the programme is playing a key role in supporting the private sector as the driver of the national economy. As demand for the programme rises, an additional budget of BD100 million is set to be added to its portfolio in 2014 and 2015 to meet this demand," he remarked.

BDB Group CEO Nidal Al Awjan said: "Our strategic cooperation with Tamkeen has always proved useful and serious as we work together to create customised administrative and financing solutions to help youth manage successful projects capable of adapting to market requirements and, consequently, achieving sustainability."

"SMEs are increasingly becoming the backbone of the economy in many countries as they add value and create more jobs. Tamkeen and BDB share the same developmental goals that stress the importance of entrepreneurship among youths, in line with Bahrain Economic Vision," stated Al Awjan.

The enterprise finance portfolio, said the official, was increased to accommodate all needs and attract the largest number of creative young men and women with broad visions, technical and intellectual skills as well as unique talent.

"We always advocate a culture of self-reliance and initiative-taking. From the launch of this programme in 2008 until the end of December 2013, more than BD111,475 million were offered through 3,861 finance contracts. This proves the efficiency of this programme and the importance of maintaining and developing it to fulfill all requirements and ambitions," he added.-TradeArabia News Service