Bahrain’s Labour Fund (Tamkeen) has recently partnered with Safaghat, a crowdfunding investment platform licensed by the Central Bank of Bahrain, to offer alternative financing options to micro, small, and medium-sized enterprises (mSMEs) in the country.
This strategic collaboration aims to empower Bahraini enterprises, particularly those with high potential and innovative business models, by providing tailored financial solutions to meet their unique needs.
The initiative is expected to significantly contribute to the growth of the entrepreneurship ecosystem, thereby fostering sustainable economic development in Bahrain, according to the announcement published by the Bahrain News Agency.
Tamkeen will be providing financing support by covering a portion of the profits for eligible Bahraini mSMEs, assisting them in raising capital from both local and international consumers and investors via Safaghat’s crowdfunding platform.
The platform operates in accordance with Sharia principles, ensuring that the financing options provided are compliant with Islamic finance standards.
Maha Abdulhameed Mofeez, Chief Executive of the Labour Fund (Tamkeen), expressed the organization’s commitment to supporting Bahraini entrepreneurs and facilitating their access to necessary financial resources.
She emphasized that this partnership with Safaghat is particularly crucial for ventures that may find traditional banking options inaccessible, highlighting its alignment with Tamkeen’s mission to stimulate innovation and entrepreneurship in key growth sectors such as Information and Communication Technology (ICT).
Safaghat CEO Husain Ali Sayed stated that the platform is at the forefront of financing-based crowdfunding investment platforms in Bahrain. He underscored the significant impact that this program would have on addressing funding challenges faced by startups and mSMEs, especially in the tech sector.
He also highlighted Safaghat’s commitment to Sharia compliance, positioning it as a trustworthy financing partner for businesses.
The program offers debt-based financing tailored to tech businesses and those relying heavily on intangible assets, providing swift access to capital with minimal collateral requirements. This ensures that even small ventures with limited assets can benefit from the program.
Innovative and high-potential mSMEs operating for less than three years are eligible to apply through Safaghat’s website, safaghat.com, opening up new opportunities for growth and development in the Bahraini entrepreneurial landscape.