Tamkeen, an agency supporting the private sector that is backed by the government of Bahrain, and Family Bank, a nonprofit Bahraini microfinance bank, recently signed an agreement whereby Tamkeen will fund an increase of BHD 1 million (USD 2.6 million) in the portfolio of the Microfinance Support Scheme, a joint program of the two organizations that offers financing services to small and medium-sized enterprises (SMEs). The increase will double the total budget of the program to BHD 2 million (USD 5.3 million).
The scheme’s services are “Sharia-complaint,” meaning they comply with Islamic law in ways such as using profit sharing in lieu of charging fixed interest payments. Under the scheme, Family Bank will invest half of the amount required to carry out approved projects ranging in size from BHD 500 to BHD 7,000 (USD 1,320 to USD 18,500). Family Bank also provides clients with deposit services and business management advice.
From its establishment in January 2011 to March 2013, 653 SMEs have received financing from the program As of December 31, 2011, Family Bank reported total assets of BHD 4.2 million (USD 11.1 million). Further financial data on the organization is unavailable.
As of December 31, 2011, Tamkeen reported total assets of BHD 107 million (USD 284 million).
By Nicole Boyd, Research Associate
About Family Bank Bahrain
Family Bank is a Bahraini microfinance bank that seeks to promote social and economic development through microfinance. The bank conducts market research, provides customer training courses in management and technical skills, and offers deposit and other Shariah-compliant financial services to low-income clients. As of December 31, 2011, Family Bank reported total assets of BHD 4.2 million (USD 11.1 million). Further financial data on the organization is unavailable.
About Tamkeen (Bahrain Labour Fund)
Tamkeen is an independent authority in Bahrain that was established by the government in 2006 as part of the country’s national reform initiatives. Tamkeen seeks to promote the development and productivity of Bahraini enterprises and individuals. Tamkeen is funded by 50 percent of the fees collected by the Labour Market Regulatory Authority (LMRA), the country’s labor regulator. As of December 31, 2011, Tamkeen reported total assets of BHD 107 million (USD 284 million).
Sources and Additional Resources:
Albawaba. “Tamkeen and Family Bank sign agreement adding BD1 million to the microfinance portfolio,” http://www.albawaba.com/business/pr/tamkeen-family-bank-472140
MicroCapital. January 18, 2010, “MICROCAPITAL BRIEF: Family Bank, a Microfinance Organization in Bahrain, Opens with $40m in Authorized Capital,” https://www.microcapital.org/microcapital-brief-family-bank-a-microfinance-organization-in-bahrain-opens-with-40m-in-authorized-capital/
MicroCapital. August 18, 2008, “MICROCAPITAL STORY: Bahraini Government to Seek Technical Assistance from Indian Microfinance Practitioners in Developing Microfinance Programs,” https://www.microcapital.org/microcapital-story-bahraini-government-to-seek-technical-assistance-from-indian-microfinance-practitioners-in-developing-microfinance-programs/
MicroCapital Universe Profile: Tamkeen (Bahrain Labour Fund) http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Tamkeen+%28Bahrain+Labour+Fund%29+
MicroCapital Universe Profile: Family Bank Bahrain http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Family+Bank+Bahrain
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