ICD, Tamkeen and Ibdar launch US$100m Fund

Manama : The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IDB Group, in partnership with Ibdar Bank, Bahrain-based wholesale Islamic Investment bank and Labour Fund “Tamkeen” has announced the launch of US$100 million Bahrain SME fund.

The fund, a Shariah compliant mezzanine private equity will invest in Bahrain’s Small and Medium Enterprises (SME’s). The Fund will target SME’s with high growth potential in consumer, industrial, ICT, education and healthcare sectors, as well as sectors experiencing dynamic change, or where there are clearly attractive investment opportunities.

Dr Ebrahim Mohammed Janahi Chief Executive of Tamkeen commented: “Through this partnership, we aim to provide further support to enterprises in the kingdom to achieve their highest potentials.”

Explaining further, Khalid Al Aboudi, Chief Executive Officer of the ICD said that the programme not only provides access to financing but also favours inclusive growth with the provision of a comprehensive range of financial products and services with customised approach for each Member Country

“SME support is at the centre of ICD’s strategy as we seek to develop the private sector as a vehicle for economic and social growth, and facilitate further prosperity in Islamic countries,” he added. 

Highlighting SMEs as the main drivers of growth, Ahmed Al-Rayes, Chief Investment Officer of Ibdar Bank said that the Fund is aligned with the bank’s mission to support Bahrain’s economic diversification through private sector growth which will spur innovation and job creation.

The Fund, according to the statement, is expected to add immense value to Bahrain as a tool for SME growth and development where 90 per cent of Bahrain enterprises are SMEs and their contribution accounts for about 30pc of the Kingdom’s GDP.