Manama, Bahrain - The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IDB Group, in partnership with Ibdar Bank, Bahrain-based wholesale Islamic Investment bank and Labour Fund “Tamkeen” as part of the investment committee has announced the launch of the Bahrain SME fund.
The Bahrain SME Fund is a Shariah compliant mezzanine private equity Fund which will invest in Bahrain’s Small and Medium Enterprises (SME’s). The Fund will target SME’s with high growth potential in consumer, industrial, ICT, education and healthcare sectors, as well as sectors experiencing dynamic change, or where there are clearly attractive investment opportunities.
Dr. Ebrahim Mohammed Janahi Chief Executive of Tamkeen commented: “Tamkeen continuously works on providing support solution to private sector enterprises throughout their developmental stages in order to make the private sector the key engine of the economic development in the Kingdom of Bahrain. we are pleased about this partnership with The Islamic Corporation for the Development of the Private Sector (ICD) and Ibdar Bank. Through this partnership we aim to provide further support to enterprises in the kingdom to achieve their highest potentials.”
Mr. Khalid Al Aboudi, Chief Executive Officer of the ICD expressed: “ICD has put its mission statement into practice for the SMEs sector by engaging in innovative strategies and alliances that will serve to strengthen SMEs in Middle East and North Africa, thereby enhancing the impact of socio-economic development. We are pleased to partner with Ibdar Bank and Tamkeen to launch the Bahrain SME Fund. SME support is at the center of ICD’s strategy as we seek to develop the private sector as a vehicle for economic and social growth, and facilitate further prosperity in Islamic countries. The SME Funds Program, focusing on providing strategic advisory services, designing, developing, launching and managing investment vehicles with a successful track record, is also providing technical assistance to financial institutions and investee companies. The Program is not only supporting access to finance but also favoring inclusive growth with the provision of a comprehensive range of financial products and services with customized approach for each Member Country ”.
Commenting on the announcement, Mr. Ahmed Al-Rayes, Chief Investment Officer of Ibdar Bank said: “SMEs are the main drivers for growth and economic diversification and the backbone of any successful and sustainable economy and contribute significantly to the development and growth of efficiency, particularly to innovation, job generation, and international competitiveness. The creation of this Fund is aligned with the Bank’s mission to support Bahrain’s economic diversification through private sector growth which will spur innovation and job creation.”
The Fund will add immense value to Bahrain as a tool for SME growth and development where 90% of Bahrain enterprises are SMEs and their contribution accounts for about 30% of the Kingdom’s GDP.
About Ibdar Bank
Ibdar Bank is a Bahrain-based wholesale Islamic Investment bank regulated by the Central Bank of Bahrain and engaged in real estate, private equity, capital markets and investment advisory activities.
The Bank was formed in 2013 when three Bahrain-based Islamic banks, Elaf Bank, Capivest and Capital Management House, merged to become the 3rd largest Islamic Investment Bank in Bahrain. Since inception, the Bank has built a track record in the Aviation, Real Estate, Sukook and Asset Management sectors, and remains focused on providing superior Islamic Investment Banking services whilst operating to the highest standards of ethical and sharia banking practices. The Bank is a keen supported of the elevation of the Islamic Banking and Finance Industry as a whole, and the reinvigoration of the Kingdom of Bahrain as the global Islamic Banking hub.
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. The SME Funds Program of ICD, managed by a dedicated team of experts, is supporting ICD’s SME development strategy across member countries. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s. For more information, visit www.icd-ps.org
Tamkeen is a semi-government organization in Bahrain established in 2006 under Law Number (57) as part of the country’s national reform initiatives, with the task of making the private sector as the key driver of sustainable economic development.
Underpinned by 3 strategic pillars – enhancing quality, serving customers, and achieving results - the organization provides an integrated range of programs to create a solid foundation for a modern economy – such as SME financing, skills training, and entrepreneurship.
At the same time, these programs address key challenges facing Bahrainis and businesses in the private sector at various stages of their development - from start-ups to mature companies, and from students to senior executives.
To date, Tamkeen’s programs have served more than 140,000 Bahrainis and businesses. More information available at www.tamkeen.bh
© Press Release 2017