Gulf Bank has announced that it is taking part in the National Fund’s SME Debt Program; a program which has been developed by the Kuwait National Fund for SMEs Development (National Fund), established under law 98/2013, to encourage an entrepreneurship ecosystem in Kuwait through providing different forms of support to small-and medium-size enterprises (SMEs).
The National Fund identified that one of the ways of helping it to achieve its objectives is by partnering with Gulf Bank and other local banks to leverage on the existing financial infrastructure and expertise to assist in providing growth capital in the form of debt.
Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Board at the National Fund for SMEs Development, said: “While the Fund envisages supporting the small- and medium-size enterprises in the areas of finance, education/training, legal, infrastructure, and other strategic /technical guidance, it has also identified that one of the means to achieve its goals is by partnering with local banks to leverage on the existing infrastructure and expertise.”
“The Fund, in collaboration with banks, will support SMEs by offering competitive loans to meet their full financing requirements. The banks will assess each business case on the basis of a list of eligibility criteria set out by the law, and agreed on with the National Fund. Once a bank is satisfied with the credit requirements, the file will be sent to the National Fund for review and final approval. The bank then disburses the loan based on the approved product program, and will act as an agent for the National Fund’s portion of the credit extended to the borrowers.”
“This program, and other future ones, are designed in-line with the country’s direction to encourage the private sector in participating further in the economic development of Kuwait.”
Mr. Omar Kutayba Alghanim, Gulf Bank’s Chairman, said: “We are proud to be the first to take part in this important national initiative, to give direct and tangible support for Kuwait’s entrepreneurs and SME owners. SMEs and entrepreneurs are key drivers to diversifying Kuwait’s economy and ensuring a prosperous and stable future.”
“This is also a great opportunity to showcase our tailored SME services, as well as share ideas and help encourage young businesses to grow. We look forward to rolling this program out, with a fully trained and dedicated staff ready to receive loan applications from entrepreneurs and SMEs for swift processing using the National Fund’s procedures.”
Gulf Bank’s participation reflects its strategy to assist Kuwaiti nationals and promote Kuwait’s business community. It also reaffirms the Bank’s dedication to encouraging new ideas and developing a new generation of entrepreneurs.