During a Press conference-cum-signing ceremony on Monday, StanChart Saadiq and Tamkeen announced the launch of the enterprise finance scheme for the bank customers in Bahrain. Through the scheme, Tamkeen will offer the bank a 50% guarantee for the total financing amount as well as subsidise 50% of the profit payments due from the benefitting enterprises. The scheme offers Sharia Compliant financing enterprises incorporated in Bahrain.
“Standard Chartered Saadiq in Bahrain plays a key role in the Group’s strategy to become a key contributor in the rapidly growing Islamic finance sector,” the bank in a statement said.
“Standard Chartered Bank is proud to be associated with Tamkeen on the Enterprise Finance Scheme, catered to the Enterprises in general with a focus on SMEs,” Wasim Akhtar Saifi, Global Head Islamic Banking, Consumer Banking, Standard Chartered Bank, said.
“Islamic banking and SME banking are of strategic importance to Standard Chartered Group as the industry grows from strength-to-strength. It furthers our strategic intent to be the best international bank in Asia, Africa and the Middle East,” he added.
Sai Narain CDK, Regional Head Consumer Banking Northern Gulf, Levant and Oman, Standard Chartered Bank Bahrain termed the launch of Shariah compliant loans for the SMEs as a completion of the entire range of products and services.
“Before the launch of this initiative we felt that there was a missing link and that was the SMEs segment. With a high potential in the SMEs StanChart expects to achieve $10 million to $15 million in a year,” he added.
“SMEs are the engines of the economic growth and development within the country and with our partnership with Tamkeen; it further strengthens our commitment to continue to support the SMEs.”
“Our decision to offer the suite of Saadiq product and services in Bahrain is a direct response to feedback from our customers that they want their banking needs met within Shariah principles. The Saadiq brand is a clear demonstration of our ‘Here for Good’ commitment by responding to the evolving needs of our Islamic Banking customers and providing them with convenient, effective and rewarding Shari’ah compliant banking solutions.”
“We are optimistic that Standard Chartered Saadiq will have a positive impact on Bahrain’s Islamic banking sector with the launch of an array of enhanced products and services. And we will remain firm on our commitment – to be here for our customers in fulfilling their evolving demands and to the Government’s agenda in the development of the Islamic banking and SME industry.”
Tamkeen’s Chief Executive Mahmood Hashem Al Kooheji expressed his happiness that Standard Chartered Bank services would provide another unique offering to the private sector by being our 10th partner bank to offer Islamic enterprise financing. “Today’s signing of a BD 5 million portfolios comes as part of an overall BD 164 million of Islamic financing facilities which have been offered since the launch of Tamkeen’s Finance Scheme.”
“Providing financing to support the private sector is one of Tamkeen’s main objectives, to provide beneficiaries with innovative and value-creating opportunities.
As part of the agreement, Tamkeen will guarantee 50% of the total financing amount as well as subsidise 50% of the profit payments due from customers. Beneficiaries of Standard Chartered Bank will be eligible to receive financing up to BD 50,000. This scheme offers Murabaha financing which covers working capital, machinery and equipment financing at a subsidised profit rate of 4% per annum on reducing balance with an option of a repayment tenor of up to three years.
All Islamic products offered by Standard Chartered in Bahrain are approved by an independent Shariah Supervisory Committee composed of respected and qualified scholars of international repute, including Dr. Abdul Sattar Abu Guddah, Sheikh Nizam Yaqubi and Dr. Mohammed Ali Elgari.