Al Dhameen Direct Finance
Written by Oryx
In October this year, Qatar Development Bank (QDB), the leading provider of direct financing for the development of the State’s private sector, introduced the Al Dhameen Indirect Lending Programme targeting local entrepreneurs under the slogan by telling them to ‘leave it with us’.
Al Dhameen is designed to improve access to financing for viable small-to-medium enterprises (SMEs) faced with a lack of collateral as required by commercial banks, or lack of credit history. The programme is designed to improve access to financing for SMEs by guaranteeing part of the financing extended by commercial banks.
“Al Dhameen was created to help diversify Qatar’s economy and spur the small-to-medium enterprise sector,” said Mr. Mansour Al Mahmoud, chief executive of QDB. “By acting as the guarantor of their loan, we’re telling entrepreneurs that they can just rely on us.”
Developed from extensive research and market studies examining obstacles and challenges faced by the local SME sector, Al Dhameen offers new entrepreneurs access to financing and affordable interest rates.
Mr. Ali Shareef Al-Emadi, QNB Group CEO, said the loan assurance initiative is the first of its kind in the country, and that the partnership between QDB and QNB is a natural fit. QNB was selected as the first bank in Qatar to offer Al Dhameen.
The programme guarantees up to 75% of the outstanding principal to a maximum of QAR 8 million for Existing SMEs (defined as those registered for three or more years at time of application) and 85% of the outstanding principal to a maximum of QAR 10 million for New SMEs or startups.
