(MENAFN - The Peninsula) As part of its commitment to provide easy access to banking products and services to local small and medium enterprises (SMEs), Qatar National Bank (QNB), Al Naqeeb Plastic Factory and Qatar Development Bank (QDB) signed an agreement to finance a new project supported through QDB's Al Dhameen programme.
QNB, in a press statement yesterday, said that it was the first bank to join Al Dhameen programme back in 2010, and since then, it has financed most of the beneficiaries of the QDB's loan guarantee programme dedicated for the SMEs.
Al Naqeeb Plastic Factory will be manufacturing PP (Polypropylene) Woven bags of different capacities (25kg, 50kg, and 100kg).
Woven PP bags are considered to be the toughest packaging bags, which are widely used to pack materials such as grains, sugar, flour, fertilisers, animal feeds, and chemicals and can also be used for other applications.
Hamad Al Kubaisi, Executive Director of Strategy and Business Development at QDB, said: "We are proud to be working with QNB in order to achieve our goals of supporting the local private and SME sectors. These goals fall directly within Al Dhameen programme's efforts in order to achieve economic diversification and lower dependency on the hydrocarbons sector as a major source of income, which is in line with Qatar National Vision 2030."
Hamad Al Jamali Assistant General Manager at QNB, added: "QNB welcomes partners who are looking to set up new factories in Qatar and we appreciate the support that is offered by QDB."
The factory will offer 100 percent custom designed polypropylene woven bags as per the required specifications of the customer. The product is flexible; double side printed, water and dust proof designed, heat/wave cut and hemmed top, flat or anti-slip woven and finally ensures UV protection.
This brand new factory will be located in the SME Industrial Area with area of 4,080 square metres, with a total built-up area of 2,230 square metres, which includes the company's offices.
Al Dhameen programme enables lending to businesses that require collateral.
QNB is a keen supporter of the programme and is committed to working in close partnership with QDB to help grow the private sector and support the free market economy in Qatar.
The programme covers a portion of the risk of funding institutes, or banks in case the guaranteed project has failed in repaying the whole amount or part of it to encourage banks to finance enterprises.