Posted on February 26, 2011

IBQ and the Qatar Development Bank (QDB) have signed an agreement for QDB's Al Dhameen SME Program which aims at growing the local Small and Medium Enterprises (SME) sector and enhancing Qatar's economic fundamentals. The agreement was signed at the QDB Head Office on Grand Hamad Street in the presence of Mansour Ibrahim Al-Mahmoud, Chief Executive Officer of QDB and George Nasra, Managing Director of IBQ.

The Qatar Development Bank has established the Al Dhameen Indirect Lending Program to offer a range of financing solutions to viable SMEs. The program is designed to improve access to financing for SME’s by guaranteeing part of the financing extended by commercial banks.

The program guarantees up to 75 per cent of outstanding principal to a maximum value of QAR 8 million for existing SME’s; and 85 per cent of outstanding principal to a  maximum of QAR 10 million for new SME’s or start-up companies.

Mansour Ibrahim Al-Mahmoud, Chief Executive Officer of QDB said: "We're very happy to have IBQ as one of Al Dhameen's partners. It certainly adds considerable value to our existing partnerships. The Al Dhameen SME 2011 Program is one of many QDB initiatives to help diversify the Qatari economy and enhance the productive and active role that SMEs play in a robust domestic business market. The program will encourage an increase in the number of new SMEs by making access to finance easier for entrepreneurs at affordable rates. Additionally, Al Dhameen will also helps existing SMEs grow into larger and more significant businesses by providing them with greater access to financing for investments and working capital."

George Nasra, Managing Director of IBQ said: "We, at IBQ, are strongly committed to participate in the growth of the Qatari economy by supporting local SMEs and providing required finance solutions, particularly in light of the number of new project coming on stream as a result of the World Cup 2022, which are estimated at over USD 70 billion. We firmly believe that for an economy to move from strength to strength there should be a healthy and productive partnership between the private and public sectors in order for SMEs to expand and for a diversified economy to have healthy and solid pillars."

The Al Dhameen program was designed to develop high-priority sectors, such as manufacturing and knowledge-driven systems that are in-line with the Qatar National Vision 2030.