Bahrain Launches $185mln Fund To Support SMEs

Bahrain has launched a new SME fund following the signing of strategic partnership agreements between Bahrain Development Bank (BDB), the National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank.

The announcement was made by Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the Small and Medium Enterprises (SME) Development Council, during the Gateway Gulf 2025 Forum in the presence of senior officials and representatives from government entities and the banking sector.

BDB will manage the SME Fund and provide Sharia’a-compliant financing with a total value exceeding $185 million.

 With Tamkeen covering up to 50% of the profit rate, the fund offers repayment terms of up to five years. Through simplified application procedures and accessible financing, the fund is designed to help clients bridge persistent funding gaps.

Fakhro highlighted that the launch of the SME Fund represents a key milestone in advancing the government’s mandate, led by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, to strengthen the private sector and empower SMEs through easier access to financing.

 He also noted that the Fund is among the strategic initiatives introduced by the SME Development Council to foster a sustainable, innovation-driven economy and enhance the role of entrepreneurs in driving national development.

He added that the initiative aligns with the Ministry of Industry and Commerce’s efforts to strengthen the local entrepreneurship landscape through meaningful public-private partnerships that create new opportunities for innovation, growth, and active participation in achieving Bahrain’s Economic Vision 2030.

Dalal Al Qais, Group Chief Executive Officer of BDB, said: “The launch of the SME Fund underscores our long-standing commitment to supporting Bahraini entrepreneurs and accelerating the growth of this vital sector. 

Beyond providing capital, our focus is on empowering businesses to expand, innovate, and contribute meaningfully to Bahrain’s sustainable economic development. At BDB, we are proud to play an active role in building a more equal and inclusive national economy.”

Maha Abdulhamid Mofeez, Chief Executive of Tamkeen, affirmed that Tamkeen’s support for the SME Fund builds on its ongoing efforts to support SME growth by helping businesses secure the financing they need in collaboration with partners across the banking sector. 

She noted that this cooperation enables businesses to achieve their development goals, enhance productivity, and further strengthen their role as key contributors to national progress, while expanding employment for Bahraini talent.

Yaser Alsharifi, Group Chief Executive Officer of BBK, added: “Our support for this Fund aligns with BBK’s strategy to strengthen the local business landscape, empower Bahraini entrepreneurs, and facilitate their access to the financing required to scale their ventures. 

This initiative contributes to fostering innovation, creating quality employment opportunities, and advancing economic development in line with Bahrain’s Vision 2030. 

We are pleased to be part of this national effort that brings together leading financial institutions across the Kingdom and reflects the collective commitment of the public and private sectors to empower SMEs, which remain a cornerstone of economic diversification and sustainable growth.”

Usman Ahmed, Group Chief Executive Officer of the NBB, said: “This fund marks a turning point for Bahrain’s entrepreneurial ecosystem. By combining the scale and experience of leading financial institutions with the support of national enablers, we are fostering a strong foundation for SME growth. NBB recognises that the success of this sector is essential to the Kingdom’s long-term prosperity, and we remain fully dedicated to providing tailored financial solutions that help Bahraini businesses to flourish amidst dynamic market shifts.”

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, said: “Al Salam Bank is pleased to be a partner in this national initiative aimed at developing the SME sector in the Kingdom. This segment plays a central role in driving economic growth, fuelling innovation, and opening new pathways for aspiring Bahraini professionals. 

Our participation in the Fund reflects our continued dedication to nurturing entrepreneurship and supporting sustainable business growth that contributes to the prosperity of our economy. We view this initiative as a meaningful step towards fostering a culture of entrepreneurship and strengthening collaboration between the public and private sectors to build a more inclusive and diversified economy.”

Applications for financing will open on Monday, November 10, at BDB’s headquarters in the Diplomatic Area, where a dedicated team will be available to receive and assist business owners applying for funding. Those wishing to benefit from the SME Fund may also contact 17511000 to learn more about the application process and receive personalised support.

The launch of the fund underscores the strength of public-private collaboration to advance Bahrain’s economic diversification goals under Economic Vision 2030. It represents a key national milestone in empowering SMEs to grow and contribute more effectively to the economy by equipping them with the resources they need to succeed within an increasingly competitive environment. - TradeArabia News Service