The Labor Fund Tamkeen has entered an agreement with Khaleeji Commercial Bank (KHCB) to manage a financing portfolio worth $79.5 million, in order to boost Tamkeen’s Business Development “Tamweel+” scheme.
The agreement is a continuation of the ongoing enterprise effort to support Bahrain’s economy, while simultaneously improving the country’s private sector. It is designed to offer financing solutions for expansion, diversification, and investment projects with capital ranging between $2.6 million and $6.6 million.
The recipients of the fund can benefit from the long-term repayment scheme which goes up to seven years. The long-term repayment scheme is part of a broader strategic policy to support Bahrain’s SMEs that go through various challenges as they undergo different development stages.
Additionally, Tamkeen has also agreed to subsidize 70% of the annual nominal profit rate.
“At KHCB, we prioritise our responsibility towards the success of policies that aim to promote economic growth, maintaining monetary stability, developing the private sector’s financing mechanisms, providing bank credit in the necessary amounts with suitable conditions to achieve targeted growth, financing investment, as well as providing an appropriate environment that maintains economic stability. From this viewpoint, the partnership was signed,” said Tawfeeq Mohamed Bastaki, Chief Risk Officer and Acting CEO of KHCB.
Meanwhile, Dr. Ebrahim M Janahi, Chief Executive of Tamkeen, welcomed the new agreement with KHCB by underlining how banks can play in the expansion of Tamweel+.
He further stretched that Tamweel+ has the potential to help the private sector in the Kingdom to reach new highs by expanding their domestic and global outreach. Adding, “This contribution ultimately emphasizes Bahrain’s position as a commercial hub, and a leading economic center, especially in the non-oil sector, paving the way for economic expansion in light of the international economic transformation.”