RIYADH: Micro, small and medium-sized enterprises in Bahrain will soon have access to alternative financing support thanks to a new agreement signed by the Labor Fund, also known as Tamkeen.
The fund partnered with Safaghat, a crowdfunding investment platform licensed by the Central Bank of Bahrain, to empower the country’s startups and MSMEs, the Bahrain News Agency reported.
This move will further foster growth in Bahrain’s entrepreneurship ecosystem and economy.
“Tamkeen is dedicated in supporting Bahraini entrepreneurs and helping them access financial solutions needed to scale their ventures, particularly when traditional banking options might be out of reach,” said Labor Fund CEO Maha Abdulhameed Mofeez.
He added: “This collaboration with Safaghat aligns perfectly with our mission to foster innovation and entrepreneurship and to stimulate high-potential growth sectors such as ICT (information and communication technologies ).”
Under the new agreement, Tamkeen will finance loans by using a portion of its profits to support eligible Bahraini MSMEs, helping them to raise funds from local and international consumers and investors.
These funds will be facilitated through Safaghat’s crowdfunding platform, ensuring compliance with Shariah principles.
“Safaghat is proud to be at the forefront of financing-based crowdfunding investment platforms in Bahrain,” said CEO Husain Ali Sayed.
He continued that the program is projected to address critical challenges faced by startups and MSMEs in securing funds for their businesses, especially those in the tech sector.
“Our alignment and compliance with Sharia laws position us as a trusted partner for businesses seeking financing,” Sayed said.
The program provides access to debt-based financing that is specifically tailored for tech businesses as well as those that are heavily dependent on intangible assets.
It offers rapid access to capital and imposes minimal collateral requirements, which guarantees that even small businesses with limited assets can benefit.
In addition to this, the program is also open to MSMEs operating for less than three years.
Established in 2006, Tamkeen’s mission is to drive economic growth in the country by providing programs and support for enterprises and individuals.