Handicraft & SE Finance Portfolio


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Handicraft & SE Finance Portfolio

The Handicraft and Small Enterprises Financing Portfolio, managed by The Industrial Bank of Kuwait on behalf of the Government of Kuwait, was established pursuant to the law No. 10 of 1998 for establishing a portfolio with a capital of K.D. 50 million, for a period of 20 years, for financing Kuwaiti Handicraft and Small Enterprises in accordance with the provisions of the Islamic Sharia'.


Finance to Kuwait youth for setting up handicraft and small enterprises

Financing packages of up to KD 400,000 secured by project assets

Financing for up to 80% of project cost for new projects ( Maximum KD 400,000)

Grace period of up to 3 years for new projects

Profit - free loan (Qarth-Hassan) of up to KD 25,000 to meet operational expenses paid on monthly basis

Profit mark - up 2.5 % 


Main Objectives

To serve the objective of the government to encourage the entrepreneurial skills of young Kuwaiti nationals, thereby broadening and diversifying the production and service base of the country’s economy.

To provide opportunities to Kuwaiti nationals to establish enterprises in the fields of production, professions, services, maintenance etc, to help develop their personal and technical skills.

To inculcate in young Kuwaiti nationals the values of private enterprise, and to preserve traditional crafts and skills.


Activities Financed by the Portfolio 

Handicraft: Any activity using handy or professional skills in which machines are not used extensively.

Small Enterprises: where the total invested amount does not exceed KD 500,000/-, and the purpose is (i) to convert raw material to semi / fully manufactured / intermediate products, or convert semi-manufactured / intermediate products into fully manufactured products, or (ii) to provide maintenance / technical / professional / other services, or (iii) commercial enterprises or businesses.


Terms and conditions 

Licenses necessary for conducting the activity (Public Authority for Industry / Ministry of Commerce and Industry / Ministry of Health).

Applicant for finance should be a Kuwaiti national, or companies established pursuant to the provisions of the Law of  Commercial Companies.

The craftsman should be devoted for his project, should be experienced in the trade/craft, and should not be in any other employment.

In case of companies, all partners should be Kuwaiti nationals.

Priority for financing will be given to graduates of universities, scientific and applied institutes.

Assets financed by the portfolio should be insured with local Takaful insurance companies, with the Portfolio as first beneficiary.



Short term financing is based essentially on the commercial viability of the project supported by assignment of trade receivables or any other acceptable collateral. For medium / long term financing, mortgage of the tangible and intangible assets of the project is obtained.

Finance Limits

Project cost not to exceed KD 500,000.

Maximum 80 % financing for new projects, with a cap of KD 400,000.

Minimum limit of KD 5,000 for medium and long term projects.

Maximum short term finance limit of KD 25,000 per project.

Financing of up a maximum of KD 400,00 for expansion and development.

Profit mark-up of 2.5 %.

Repayments in monthly, quarterly, semi –annual installments.

Grace period at the discretion of the portfolio management based on the nature of the project, staring as of the date of contracting, 3 years maximum for new projects, 2 years maximum for expansion.

Loan ("Qarth-Hassan") of KD 25,000 to meet operational expenses, disbursed on a monthly basis.