Enhancement includes Shariah-compliant financial solutions for Trade and Working Capital needs
Standard Chartered Saadiq announces the enhancement of the existing Enterprise Finance Scheme partnership it has with Tamkeen to Standard Chartered customers in Bahrain to include Shariah-compliant solutions for Trade and Working Capital needs.
Through this recent enhancement, customers will be able to receive up to BD500,000 in financing, import finance and term finance for capital expenditures as well as Letters of Credit, guarantees and other services that serve the growing SME market in Bahrain.
As per the Enterprise Finance Scheme, which Tamkeen offers with a number of partner banks in Bahrain, Tamkeen guarantees 50% of the total financing amount as well as subsidising 50% of the profit payments due from the benefiting businesses. This particular partnership between Tamkeen and Standard Chartered Saadiq offers Murabaha financing covering working capital, machinery and equipment financing at a subsidised profit rate of 4% per annum on a reducing balance, with an option of a payment tenor of up to 3 years.
This new enhancement further addresses the growing needs of the SME market in Bahrain by Standard Chartered hand in hand with Tamkeen. The Islamic financing offering from Standard Chartered Bank, Saadiq, is an initiative that provides a range of first-to-market innovative products and services that the Islamic Banking team will continue to offer across the Standard Chartered network.The emphasis of Standard Chartered Saadiq in Bahrain plays a key role in Standard Chartered's strategy to become a key contributor in the rapidly growing Islamic Finance sector.
Commenting on the announcement, Shaikh Mohammed bin Isa Al Khalifa, Acting Chief Executive and Chairman of Tamkeen, said "Tamkeen's Finance Scheme forms a critical component of Tamkeen's overall strategy to provide businesses in Bahrain with accessible financing solutions. The scheme not only allows businesses to venture into new prospects and opportunities, but also provides an environment that encourages innovation and risk-taking. With this agreement with Standard Chartered, businesses in Bahrain will have even more choices to select the optimal form of financing that they need to grow and develop."
Hassan Jarrar, Standard Chartered Bahrain CEO said: "We believe SMEs are key drivers of growth and job creation to a country and our partnership with Tamkeen stems from that belief. Tamkeen is an excellent initiative by the government of Bahrain which provided much needed support to the SME sector in the Kingdom. Given we're the first Bank in Bahrain and having been here since 1920, we remain committed to the Bahraini community and aim to provide the best financial services to our customers"
Sandeep Bose, Head of Consurmer Banking at Standard Chartered Bahrain said,
"Building the SME business is a strategic priority across our core markets; it is where we can powerfully demonstrate our distinctive contribution to the broader economy -how we are here for good. The new enhancement ensures that we continuously improve our product offering to our clients. Our strategic partnership with Tamkeen has proved successful to our customers and to the country. I'd like to thank the dedicated teams from both the Bank and Tamkeen in helping make this new enhancement."
About Tamkeen
Tamkeen is an initiative funded by the private sector for the private sector, tasked with developing Bahrain's private sector and positioning it as the key driver of economic development. Established in August 2006, Tamkeen is one of the cornerstones of Bahrain's national reform initiatives and Bahrain Economic Vision.
Tamkeen has two primary objectives: Firstly, fostering the creation and development of enterprises, and secondly, providing support to enhance the productivity and growth of enterprises and individuals.
Under each of those objectives, certain mechanisms and innovative support initiatives have been put in place by Tamkeen to address current and future gaps for individuals and enterprises in the private sector that have been identified by thorough studies of the labour market landscape.
For Bahrainis, Tamkeen's programmes range from developing the skills and capabilities of Bahrain's human capital, to promoting sound workplace ethics and training on leadership and management best practices, among others. For enterprises, Tamkeen provides programmes which offer enterprises with subsidised business support services, facilitate access to financing to bridge the enterprise financing gap, and enable entrepreneurship, to name a few.
Tamkeen's programmes have benefited 98,000 Bahrainis and enterprises in the private sector as of end of August, and more than 150,000 beneficiaries are expected to benefit from these support programmes.
In parallel, Tamkeen's programmes have played a key role in institutionalising new concepts within Bahrain's private sector, including SME and micro-financing, entrepreneurship as a viable career path, women empowerment, modern accounting and auditing systems within SMEs, and many other paradigms needed for a vibrant sustainable private sector.
Tamkeen's funds come from fees collected from the Labour Market Regulatory Authority.
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Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank's growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.
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© Press Release 2014
