MANAMA: Tamkeen and BMI Bank, a subsidiary of Al Salam Bank– Bahrain, announced an extension to their successful alliance providing Sharia-compliant financing for enterprises within the local private sector to fulfill their financial needs at a competitive cost. Initially launched in November 2010, the joint scheme offers a suite of Sharia-compliant financial products under the umbrella of the Islamic Banking division within the Bank aimed at small and medium enterprises including startups, as part of Tamkeen’s finance scheme offered by Tamkeen for the private sector.
The new agreement marks the fourth contribution of BD 10 million made by the Bank expanding the total portfolio to a total of BD40 million whilst the total value of Tamkeen’s finance scheme is BD302 million.
As part of the agreement, which Tamkeen runs through several leading Banks in Bahrain including BMI Bank, Tamkeen will guarantee 50% of the total financing amount as well as subsidise 50% of the profit payments due from customers. Through this financing scheme, enterprises within the private sector are eligible to receive financing ranging from BD10, 000 to BD500,000 to help design a higher growth trajectory for their companies. Since its launch, Tamkeen’s finance scheme has enabled over 5172 establishments to obtain the capital required for developing and promoting their activities, of which 1553 are startups. As of May 2014, over 167 establishments have taken advantage of the special scheme between Tamkeen and BMI Bank.
Through Tamkeen’s Finance scheme to small and medium enterprises including start-ups, Tamkeen promotes a strong culture of corporate finance which helps in bridging the gap that is seen in procuring finance by the sector. Additionally, Banks participating in Tamkeen’s finance scheme play a major part in bolstering corporations within the private sector, which ultimately enhances the private sectors capacity and capability as a major contributor towards the national economy.
“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 to offer further opportunities for small and medium enterprises and entrepreneurs in Kingdom of Bahrain. This will allow them to acquire flexible finance solutions. Corporate finance plays a key role in filling the finance gap faced by small and medium enterprises. In addition, this scheme urges corporations to finance their growth plans,” Tamkeen’s Vice President Private Sector Support, Mohammed Ali Bucheery, said.
“As a leading and responsible local Bank, we are honoured to further extend our relationship with our partner Tamkeen by entering the fourth phase of the scheme. One of the significant characters of a flourishing and fast-growing economy is a thriving small and medium enterprises (SME) 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,” Jamal Al-Hazeem, Director and Chief Executive Officer of BMI Bank, said.
All corporations with valid commercial registrations in the Kingdom of Bahrain can apply to benefit from Tamkeen’s finance scheme. The finance value ranges between BD 10,000 to BD 500,000. In addition, there are flexible repayment options up to 10 years with a grace period up to two years according to finance procedures.