AL-DHAMEEN is our way of assisting start up and existing companies with lack of collateral to obtain access to funds for establishment or growth their businesses. This indirect loan program encourages banks to finance SMEs by agreeing to cover a portion of the risk. In the event a company cannot fully repay a loan due to a project failing, QDB agrees to repay 85% of the finance (to a value not exceeding 15 million QR).
All main sector business activities are eligible for support under AL-DHAMEEN except the following sectors: agriculture, fishing and livestock, non-oil mining and quarrying, wholesale and retail trade, financial and insurance activities and real estate activities. Any Qatari project - small and medium enterprises or joint ventures (including foreign investors) whose annual turnover does not exceed 30 million QR can apply for finance from banks under the AL-DHAMEEN program. The individual project can receive more than one facility under AL-DHAMEEN program, as a letter of guarantee is issued for each provided facility. The total guarantees issued per project will not exceed 15 million QR
A customer can have a maximum of two projects financed through AL-DHAMEEN, guaranteed with two separate letters. In this circumstance, the total value of issued guarantees will not exceed 30 million QR.
Existing companies are eligible for guarantees of up to 75% of the unsecured outstanding principal and financing limits of up to 15 million QR. Although QDB guarantees the loan to the partner bank, sponsors are liable for the full loan amount.
Qualifying start-ups are less than three years old and 51% (or more) Qatari-owned. They are eligible for guarantees of up to 85% of the loan amount, which is limited to 15 million QR.
AL-DHAMEEN loans can be either in the form of project financing loans for manufacturing, where the maximum tenor is 8 years including a 2 year grace period. Financing for services sector will have a maximum tenor of 5 years, including 1 year grace period.
Where do you begin?
- Visit any bank partnering with AL-DHAMEEN program in Qatar.
- Get a guarantee request form for small and medium enterprises financing through the partner bank or AL-DHAMEEN program.
- Fill out the form and attach copies of the required project-related documents.
- All above documents should be submitted to the partner bank, which will conduct an assessment of the financing request.
- If the partner bank approves the required financing, it provides the AL-DHAMEEN program with the documents attached to its approval, and the program guarantees the request signed by the customer.
- The AL-DHAMEEN program studies and assesses the request as per the bank’s approval and the credit study attached.
- If the AL-DHAMEEN program approves the issuance of a guarantee letter, it requests that the customer to provide the necessary collaterals in favor of the program, including mortgage of assets.
- The bank and customer are then informed of the approval on issuance of a guarantee letter to complete the required procedures.
Note: The Partner bank
considers the financing application according to its own lending policies. When it feels the need for a guarantee, it will apply to QDB and advise the client accordingly.