01.09.2024

NBB Signs Agreement with Tamkeen to Provide Enterprise Sharia-Compliant Financing Solutions

The National Bank of Bahrain (NBB) has signed a partnership agreement with the Labour Fund (Tamkeen) to deliver Sharia-compliant subsidised financing to enable enterprises to achieve their growth and expansion plans. This agreement is part of the Financing Support programme offered by Tamkeen, which aims to provide Sharia-compliant financial solutions in the form of subsidising part of the financing profit to enable enterprises to grow and develop. 

Recognising their pivotal role in boosting the national economy, NBB will be supporting the development of Small and Medium-sized Enterprises (SMEs) through a comprehensive financing scheme. Customers will be able to submit their financing applications through the bank, which will be evaluated according to the criteria set by the bank. Applicants that are approved will receive subsidised interest rates from Tamkeen, coupled with the working capital needed to fuel the growth of their businesses. 

Commenting on the partnership, Her Excellency Ms. Maha Mofeez, Chief Executive of Tamkeen, commented: “Financing is a key element for SME’s that comprise 93% of enterprises in the economy, and we are committed to supporting Small and Medium Enterprises with financing solutions in cooperation with local banks such as the National Bank of Bahrain. This agreement reflects Tamkeen’s ongoing commitment to support enterprises that enable private sector growth which will positively impact the national economy and generate jobs for local talent.  Tamkeen strives to enrich its strategic partnerships with the financial sector, including the National Bank of Bahrain, to facilitate the growth of enterprises and help them achieve their aspirations, which will positively impact the national economy. Our current strategy focuses on several objectives, including developing the private sector by supporting enterprises in line with national economic plans and market requirements.” 

Usman Ahmed, Group Chief Executive Officer of NBB, remarked on the partnership: “We are proud to be collaborating with Tamkeen to extend our support to this vital sector. Through this strategic partnership, we aim to accelerate the growth of the wider SME market through necessary banking solutions. We remain committed to investing in key sectors in the Kingdom with the aim of contributing to the National Economic Recovery Plan and the Kingdom’s Economic Vision 2030. Our focus is on providing tailored financial products that meet the unique needs of SMEs, ensuring they have access to the capital required for their growth. Additionally, we are dedicated to fostering innovation and sustainability within the banking sector, aligning our efforts with the broader economic goals of the Kingdom. By working closely with Tamkeen, we are confident that we can help in creating a robust support system for SMEs, driving economic diversification and job creation. 

NBB continues to partner with prominent government and private sector entities in line with its ongoing ESG goals. 

Tamkeen offers various programmes that ranges from co-matching grants to access to financing through partnerships with local banks. These programmes support enterprises at various stages of growth and help them in realising their objectives more effectively.