It is an initiative by Qatar Development Bank aimed at encouraging banks to finance projects that have the potential for success but are unable to provide the necessary guarantees or accounting records to prove their eligibility for funding.
It is important to note that Al Dhameen Program is a guarantee program, not a financing program; it does not provide direct funding to small and medium enterprises (SMEs). Instead, it issues a guarantee on behalf of the funded business to the partner bank, covering up to 85% of the financing amount (provided the amount does not exceed 15 million Qatari Riyals). This helps facilitate the entrepreneur’s access to the necessary funding through the participating banks.
Program advantages:
A single project can obtain more than one financing facility guaranteed by the program, as a separate guarantee letter is issued for each facility. However, the total value of guarantees granted to one project must not exceed 15 million Qatari Riyals.
If a Qatari client owns more than one project—up to a maximum of two projects—two separate guarantee letters can be issued, provided that the total value of the guarantees granted does not exceed 20 million Qatari Riyals.
o Partner banks may grant financing higher than the permitted ceiling, but in specific cases.
Any project (small or medium) within Qatar, whether fully Qatari-owned or in partnership with foreign investors, provided that the project’s sales do not exceed 30 million Qatari Riyals.
Eligible Sectors for Support under the Al Dhameen Program:
All economic activities are eligible for support under the Al Dhameen Program, except for the following sectors: Agriculture, livestock and fisheries, mining and non-oil quarries, wholesale and retail trade, financial and insurance activities, and real estate activities.
Those seeking support apply to one of the banks participating in the program and request a guarantee application form for financing small and medium-sized enterprises. After obtaining the form, they follow the following steps:
– Fill in all the information required in the application and attach copies of all the documents related to the project.
– Submit all the required documents to the bank, which will then study and evaluate the financing request.
– If the partner bank approves granting you the required financing, the bank will submit these documents to the program along with its approval to grant the requested financing.
– The program will study and evaluate the application based on the bank’s approval and the attached credit study.
– Upon the program’s approval to issue the guarantee letter, it will request you to provide the necessary collateral for the program, including pledging assets.
You and your partner bank will be notified of the program’s approval to issue the letter of guarantee in order to complete the procedures for obtaining the necessary financing.
