Bahrain’s Ministry of Industry and Commerce has announced the launch of the SME Fund, a significant national financing initiative aimed at accelerating the growth of the country’s private sector. Unveiled during the Gateway Gulf 2025 Forum, the fund is a collaborative effort between the Bahrain Development Bank (BDB), National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank.
A Strategic Partnership For Economic Growth
The SME Fund represents a key milestone in the government’s strategy to empower local businesses and strengthen the private sector’s role in the national economy. Managed by BDB, the fund leverages the combined scale and expertise of four leading financial institutions to address critical funding gaps for small and medium-sized enterprises.
Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the SMEs Development Board, highlighted the fund’s importance in providing easier access to financing, which aligns with Bahrain’s Economic Vision 2030 goal of fostering a sustainable, innovation-driven economy.
Dalal Al Qais, BDB Group Chief Executive, added that the launch “underscores the bank’s commitment to empowering businesses to expand, innovate, and contribute meaningfully to Bahrain’s sustainable economic development.”
Sharia-Compliant Financing With Favourable Terms
The new fund will provide over $185 million in Sharia-compliant financing. To make the capital more accessible, The Labour Fund (Tamkeen) will cover up to 50% of the profit rate, substantially lowering the cost of financing for participating SMEs.
The initiative, which features simplified application procedures, offers repayment terms of up to five years. Applications are set to officially open next Monday.
Maha Mofeez, Chief Executive of Tamkeen, confirmed that this support builds on the organization’s ongoing efforts to help businesses secure the financing needed to achieve their development goals and solidify their role as key contributors to the nation’s progress.
Aligning With Vision 2030
Leaders from the participating commercial banks emphasized the initiative’s alignment with Bahrain’s long-term economic vision.
“The SME segment plays a central role in driving economic growth and fuelling innovation,” said Rafik Nayed, Al Salam Bank Group Chief Executive. “Our participation reflects our continued dedication to nurturing entrepreneurship and strengthening collaboration to build a more inclusive and diversified economy.”
Yaser Alsharifi, BBK Group Chief Executive, stated, “Our support for this fund aligns with BBK’s strategy to strengthen the local business landscape and empower Bahraini entrepreneurs with the financing required to scale their ventures. This national effort contributes directly to fostering innovation, creating quality employment, and advancing Vision 2030.”
Echoing this sentiment, NBB Group Chief Executive Usman Ahmed called the fund “a turning point for Bahrain’s entrepreneurial ecosystem.” He noted, “By combining the scale of leading financial institutions with national support, we are fostering a strong foundation for SME growth. The success of this sector is essential to the kingdom’s long-term prosperity.”
About The SME Fund
The SME Fund is a national financing initiative in Bahrain designed to provide accessible, Sharia-compliant funding to small and medium enterprises. Managed by the Bahrain Development Bank (BDB) and backed by Tamkeen, National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank, the fund aims to bridge funding gaps, stimulate private sector growth, and support the objectives of Bahrain’s Economic Vision 2030.
Source: Zawya
