Digital

QIB and QDB Sign MoU to Finance Jahiz 1 Participants

QP

QIB Press

Digital Desk

Jan 09, 2017 | 8 Minutes

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Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank signed a Memorandum of Understanding (MoU) with Qatar Development Bank (QDB) to finance the developmental scheme through the framework of ‘Al Dhameen’ indirect finance guarantee facility. The agreement aims to support Qatar’s small and medium-sized enterprises and promote the country’s industrial sectors such as chemicals, plastics, wood materials, and electronics.

The MoU provides small and medium-sized enterprises (SMEs) participating in the Jahiz I initiative with the access to finances up to 70% of the project value with a maximum limit of up to QR15mn per project. ‘Jahiz I’ initiative is a programme dedicated to supporting a number of industrial sectors in the country. Moreover, the participating companies can now obtain the required funding within 10 working days at competitive financing rates. QIB will also help extend lending to SMEs by providing adequate safeguards through the existing Al Dhameen indirect finance guarantee facility.

The MoU was signed by QIB’s General Manager – Wholesale Banking Group, Tarek Youssef Fawzi and QDB’s Executive Director of Business Finance, Khalid Abdulla Al-Mana.

Commenting on the agreement, Mr. Tarek Youssef Fawzi, QIB’s, General Manager – Wholesale Banking Group  said: “The Jahiz 1 agreement exemplifies QIB’s commitment towards supporting the country’s economy, by enhancing the role of the private sector and contributing to a suitable economic diversification as part of Qatar National Vision 2030. It also allows our customers to get what they need swiftly and seamlessly, thus supporting the establishment of new SMEs and helping operating companies with their business expansion plans”.

“We are proud of our strong ties with Qatar Development Bank, and we are committed to further enhance the mutual cooperation to achieve the agreement’s objectives, which will contribute significantly in providing financing solutions for the Jahiz 1 SMEs. Supporting the SME sector is one of our top priorities, and for that reason, we have a dedicated program “Aamaly” designed to cater for all the financial needs of Small and Medium enterprises in Qatar” added Mr. Fawzi.

“We are truly delighted to sign this agreement—I would like to extend my sincere gratitude to Qatar Islamic Bank. Their generous contribution will important role in enabling the entrepreneurs of the Jahiz I initiative to expand their businesses, which in turn will lead to the development of the private sector, create economic diversity, and lead to the building of a knowledge-based economy,” said Al Mana.

“Through the signing of today’s MoU, QDB enlists the support of our national financial institutions to facilitate funding for Jahiz I projects. The development of our indigenous industrial ecosystem is in line with the larger objectives at QDB our strategy to advance economic development through the provision of wide-ranging services, including consulting and financing services for entrepreneurs and SMEs, is crafted to accomplish the Qatar National Vision 2030 and promote economic diversification in the State of Qatar,” he added.

 

The ongoing Jahiz I initiative offers 32 new rental facilities on specially-discounted rates of QAR 5/m2 per month. The sites are purpose-built to host a variety of eco-friendly manufacturing businesses in the industrial area and vary in size from between 2,500 to 3,000 square meters. Moreover, they support an electric capacity of 350 – 800 kilowatts. The scheme seeks to bring down the barriers to entry for small and medium-sized manufacturing businesses that are involved in the chemicals, plastics, wood and electronics industries. 

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