MLSD Minister reviews the achievements of the Family Bank during the past ten years
24-10-2020
His Excellency Mr. Jameel bin Mohammed Ali Humaidan, Minister of Labour and Social Development and Chairman of the Board of Directors of the Family Bank, confirmed that the Bank has registered striking growth in Bahrain’s micro‑finance sector during the decade since its launch in 2010 under the patronage of His Majesty King Hamad bin Isa Al Khalifa, the country’s great King, may God protect and preserve him. In a report submitted to the Cabinet at its recent session, he noted that the institution has delivered both financial and non‑financial services to entrepreneurs and productive families, expanding its reach from 344 beneficiary families and micro‑enterprises in 2012 to almost 6,000 by 2019 and disbursing more than BHD 13 million. This detailed report, which Humaidan presented to the Council of Ministers at its session last Monday, marks the tenth anniversary of the Family Bank and details its achievements. It confirms that the Bank’s operating philosophy centres on offering Sharia‑compliant micro‑finance without collateral or guarantees and with support from the Labour Fund (Tamkeen), thereby targeting the Kingdom’s lowest‑income groups. By extending this assistance, it enables families, job‑seekers, widows and other vulnerable citizens to generate sustainable income and raise their standard of living through productive enterprise. Humaidan added that His Majesty King Hamad bin Isa Al Khalifa, the country’s great King, may God protect and preserve him, envisioned the Bank as a catalyst for empowering Bahraini families to run their own economic projects and unlocking opportunities for low‑income citizens. The initiative was launched with the blessing of Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa, President of the Supreme Council for Women, received steadfast backing from His Royal Highness Prince Khalifa bin Salman Al Khalifa, the then Prime Minister, and continues to enjoy the special attention of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and Prime Minister. Acting in concert with the Ministry of Labour and Social Development, the Royal Humanitarian Foundation, and several national banks, the Family Bank has thus become a key conduit for strengthening Bahrain’s social security network and driving the economic empowerment of low-income individuals and families. Humaidan noted that Family Bank’s financing for households enrolled in the Khatwa (Step) Home Business Programme has markedly increased the number of families holding productive‑home licences to more than 864, encompassing diverse age groups, educational backgrounds, cultural levels, social‑security recipients and jobseekers. The enhanced marketing framework for these families’ products has also boosted income: total sales rose from roughly BHD 134,000 in 2011 to about BHD 395,000 in 2019, while 47 families progressed from home production to entrepreneurship, establishing commercially viable ventures. Family Bank—the Arab world’s first social micro‑finance institution—was authorised by the Central Bank of Bahrain under Resolution 53 of 2009 as an Islamic finance bank with authorised capital of BHD 15 million and paid‑up capital of BHD 5 million. It is a partnership between the Ministry of Labour and Social Development, the Royal Humanitarian Foundation, Bank of Bahrain & Kuwait, Ithmaar Bank, Ahli United Bank and Kuwait Finance House, created in collaboration with the Grameen Foundation under a 2007 working document with the Ministry.