Doha: Qatar Development Bank (QDB) yesterday said its Al Dhameen indirect lending (guarantees) has funded 25 projects in 2014 for a total value of QR130m through partner banks.
Overall it has financed nearly 120 projects of start-ups and established Small and Medium Enterprises (SMEs) in Qatar, the bank said.
Hailing the growth of Qatar’s SMEs, QDC CEO Abdulaziz bin Nasser Al Khalifa said: “Success does not happen by chance; it is a choice.“It is the result of innovative policies we implemented to help SMEs overcome financial obstacles. We have also share success by working together with our partner banks in Qatar, rather than competing with them.”
Al Dhameen has also helped banks overcome reservations about financing SMEs due to the high-risk ratio of some in the sector, he said.
QDB and partner banks provide financing solutions to SMEs by disbursing loans and following their market progress.
The bank started Al Dhameen in 2010 to encourage banks to finance SMEs with short credit history or with no collateral to support borrowing.
It does not provide direct financing to SMEs, but offers business owners a facility to receive the required project financing from a partner bank, by issuing guarantees in favour of that bank.
Under the guarantees, Al Dhameen vouches for 85 percent of the loan value not exceeding QR15m. So far, it has provided guarantees worth nearly half a billion riyal to SMEs through nine Al Dhameen partner banks.
QNA
