Baku:Tender Board A memorandum of understanding (MoU) has been signed between the Tender Board and Al Baraka Islamic Bank. The agreement, signed by Jamal Abdulaziz Al Alawi, Secretary-General of the Tender Board, and Husain Yusuf Ateyah, Acting Chief Executive of Al Baraka Islamic Bank, aims to facilitate the issuance of guarantees required for small and medium enterprises (SMEs) to participate in government tenders and auctions. This initiative is expected to enhance the ability of SMEs to compete for and win government contracts.
According to Bahrain News Agency, the MoU outlines that Al Baraka Islamic Bank will provide facilities for issuing guarantees and granting financing to SMEs, based on agreed mechanisms and controls. These facilities are designed to help SMEs submit the necessary guarantees within specified deadlines, meeting all conditions for participation, award requirements, and contract signing.
Jamal Abdulaziz Al Alawi emphasized that this collaboration is part of the Tender Board's efforts to support SME growth and sustainability. He pointed out the importance of building partnerships with the banking sector to enable SMEs to benefit from government tender opportunities. He also highlighted that guarantees are essential for participating in tenders, and the MoU aims to strengthen SME competitiveness and access to government opportunities.
Al Alawi further noted that the Tender Board continues to develop its procedures and training programs to support suppliers and contractors in submitting complete bids. Last year, 247 government tenders and auctions were awarded to 151 SMEs, amounting to BD52.3 million. This marks an 11% increase in the number of beneficiary enterprises from the previous year, demonstrating efforts to broaden SME participation in government procurement.
Husain Yusuf Ateyah stated that the MoU reflects Al Baraka Islamic Bank's commitment to providing services that cater to SME needs, facilitating their participation in government projects. He affirmed that bank guarantees are crucial for enterprises seeking to engage in government tenders, and the MoU aims to support SMEs in issuing these guarantees, thereby enhancing their ability to execute contracts.