As part of its efforts to support and develop Bahraini women projects and encourage female entrepreneurs in the kingdom, Tamkeen continues to support Riyadat Finance Scheme, a financing portfolio dedicated to support and develop Bahraini women businesses in partnership with the Supreme Council for Women (SCW) and Bahrain Development Bank (BDB).
Since its launch in March 2016, Riyadat Finance Scheme has supported 46 business projects with a total of 1 million Bahraini Dinars. The portfolio will remain active until 2020.
“Tamkeen’s support for Riyadat Finance Scheme is part of our continuous efforts to empower Bahraini women and help remove financial obstacles facing their businesses to prosper and play a significant and influential role in the kingdom’s national economy and comprehensive development,” said Dr. Ebrahim Mohammad Janahi Tamkeen’s Chief Executive. “We are proud of our partnership with SCW and BDB and we will always work to realise our common objectives through joint programs and projects that strengthen the position of women as partners in Bahrain’s prosperous economic development.”.
Riyadat Finance Scheme provides Bahraini women entrepreneurs with low-profit sharia-compliant financing to support and develop women businesses. With a portfolio of BD 37.7 million ($100 million) provided by the BDB and fully subsidized by Tamkeen, the portfolio targets various business segments, such as start-ups, growing and matured businesses.
Tamkeen dedicates much of its efforts to encourage women to establish and manage businesses in Bahrain. It offers and supports a number of projects that seek to support Bahraini women entrepreneurs, whether established or emerging, and meet their business needs.
Under Riyadat Finance Scheme, Tamkeen subsidizes 100% of the annual profit rate for finance ranging between BD 5,000 and 30,000 with a repayment period of no more than three years, and 60% of the annual profit rate for finance amounts more than BD 30,000 and less than BD 100,000 with a repayment tenure of up to 10 years. Bearing in mind generous grace periods that may be provided subject to the discretion of the bank.
The BDB assesses applications and determines the finance amount based on various factors such as the nature of the business, the size, and the business requirements. Tamkeen then examines the applications to determine the eligibility and the percentage of subsidy in a timely manner. It is also worth mentioning that the bank as well as Tamkeen may request the applicant for additional documents as deemed fit.
The innovative Riyadat Finance Scheme is a result of a strategic partnership amongst Tamkeen, SCW and BDB, which got materialized by a Memorandum of Understanding signed on 3 March 2016.
In 2010, Tamkeen launched the Microfinance Scheme with a portfolio of BD 1 million to support microbusinesses, start-ups and small businesses as well. This scheme was in cooperation with Ebdaa Bank which offered finance amounts of up to BD 5,000 for each applicant, with a repayment tenor of up to 3 years. Tamkeen’s support was mainly subsidizing 50% of the annual profit rate leading to appealing and more affordable financing. Overall, the scheme served 421 businesses including home-based businesses that used to find difficulties accessing financial support to grow and develop.