Qatar’s first Islamic financial institution, Qatar Islamic Bank (QIB) has signed a new Al Dhameen Program Agreement sponsored by the government-owned financial entity, Qatar Development Bank (QDB).
According to the new agreement, small and medium enterprise (SME) customers at QIB can benefit from Al Dhameen Portfolio to obtain financing equivalent to 70 percent of the value of the project, with a maximum of $4.1 million (QAR 15 million) for each project.
SMEs can also obtain the required financing at competitive financing rates. Further, the agreement encourages partner banks to expand the process of financing SMEs by providing them with sufficient guarantees through the “Al Dhameen” Program.
“This agreement is a testament to QIB’s commitment to supporting Qatar’s economy by enhancing the role of the private sector and contributing to a suitable economic diversification as part of Qatar National Vision 2030. The new “Al Dhameen” Program enables our customers to fulfill their needs seamlessly and expand their business, thus supporting the establishment of new SMEs and helping operating companies with their business expansion plans. QIB is proud of its strong ties with Qatar Development Bank, and we are committed to further enhancing our mutual cooperation to achieve the objectives of this agreement, which will contribute significantly to providing direct financing solutions for SMEs.”
Al-Dhameen is a QDB initiative encouraging banks to offer financing to startups and SMEs that are unable to provide the necessary financing guarantees or collaterals. It does not offer direct financing to SMEs. Instead, it issues a letter of guarantee to the financing bank, promising to repay up to 100 percent of the allocated funds.
Recently, QDB launched the new version of the ‘Al Dhameen’ program for micro-enterprises, which will contribute to the development of the national business system in terms of access to financing.