Tamkeen - Shamil partnership fuels SME growth

The financing, which contributed directly to growth in the Kingdom's private tourism, retail, construction, manufacturing, education and transportation industries, was made as part of the BD12.5m Nibrass scheme, a unique joint initiative between Tamkeen (Labour Fund) and Shamil Bank.

The Nibrass scheme provides financing with the lowest profit rates ever made available to Bahrain's SMEs by the banks. The three-year scheme was introduced last year to support the growth and expansion plans of Bahrain's SMEs by providing them financing packages of between BD10,000 and BD100,000. Recipients are given up to 10 years to repay the financing which is offered at at a record low profit rate of 4% per annum (on reducing balance) by Shamil Bank that is subsidised by Tamkeen.

"We are delighted with the success of the Nibrass financing scheme which has provided a much needed boost to members of our local business community looking to enter new territories and expand their product offering," said Tamkeen's Senior Manager for Private Sector Support, Mohammed Bucheery. "It is particularly rewarding to see almost 200 Bahraini enterprises capitalising on this unique, unprecedented opportunity," he said.

"Actively supporting the development of SMEs is a vital part of Tamkeen's ongoing efforts to revitalise the Kingdom's labour market and make Bahraini companies an 'employer of choice'," said Bucheery. "Through our strategic partnership with one of Bahrain's leading Islamic banks, Shamil Bank, we were able to successfully design an effective financing model for others to follow and this model has directly impacted the economy by increasing opportunities for investment and employment," he said.

Shamil Bank Assistant General Manager, Corporate Banking Farooq Al Awadi pointed to the Scheme's success as an example of the powerful synergies that can be created through partnerships and said he was pleased the Bank could contribute to the Kingdom's socio-economic development.

"Shamil Bank is committed to supporting projects that add long-term value to the community and can deliver tangible, positive benefits to the Kingdom and its people,"

said AlAwadi.

"Partnering with Tamkeen to launch the Nibrass financing scheme was a perfect fit for us and is in line with our strategic objective to invest in Bahrain's economic growth," he said.

"Against the backdrop of the ongoing volatility in the markets, economies are demanding new and improved models for growth," said AlAwadi. "The injection of BD9.3m of financing - with another BD3.2m in the pipeline - into the market will stimulate the local economy and cause a positive ripple effect resulting in greater employment and investment," he said.

Tamkeen is an independent, semi- autonomous authority tasked with reforming Bahrain's labour market and enhancing the Kingdom's overall prosperity by investing in Bahraini employability, job creation and social support.

SMEs from multiple sectors - including construction, manufacturing, wholesale and retail trade, maintenance, hotels, restaurants, transportation, storage, communications and education - have, so far, benefited from the Nibrass scheme.

Mohammed Osama, who runs Paragon Trading, said the Scheme allowed him to significantly expand his business.

"Thanks to the Nibrass scheme, we have been able to improve our market share in ways we simply could not have considered otherwise," said Osama. "We were, for example, able to import more goods and equipment and, in doing so, we were able to improve both our quality and overall production. As a result, we have since increased our human resource investments, expanded structurally and diversified our product range. These improvements have translated to an almost 20% increase in turnover over the past year," he said.

Meanwhile, Isa Qambar, who runs AlFursan Plastic Factory, used the Nibrass finance package to cut back his company's operating costs and has reinvested the subsequent savings into further expanding his business.

""After we received the Nibrass scheme, we have been able to enjoy cost savings of almost 50%," said Qambar. "I have been able to introduce a unique product to the market and have moved into the forefront of the plastic industry in Bahrain. The loan has helped immensely in purchasing new machinery and increasing my product offering," he said.