Bahrain’s labor fund, Tamkeen, has announced that micro, small, and medium-sized enterprises (MSMEs) receive approximately 98% of its total institutional support. This statement comes as a direct response to a parliamentary proposal to establish a new, separate national fund dedicated to supporting the SME sector.
A Record of Comprehensive Support
Tamkeen underscored its primary role in bolstering Bahrain’s MSMEs through a wide array of programs and initiatives. The fund emphasized that its support has been instrumental in enhancing the operational capabilities and business development of these enterprises over the years.
The support mechanisms are comprehensive, including financial grants for purchasing machinery and equipment, marketing services, and aid for IT and digital transformation programs. Tamkeen also facilitates access to capital through financing programs in collaboration with several local banks, ensuring that Bahraini commercial establishments meeting the eligibility criteria can benefit.
Government Cites Redundancy and Fiscal Concerns
The Bahraini government has voiced its opposition to the proposed law for a new “National Fund for the Care and Support of Small and Medium Enterprises.” In its official view, the government stated that the proposed fund’s functions are remarkably similar to those already performed by Tamkeen, which was established by law in 2006.
Officials labeled the proposed entity as a “duplicate” that lacks clear economic justification. The government further noted that the proposal was not supported by economic, financial, or technical studies and would contradict the national principles of fiscal rationalization and the Financial Balance Program, potentially placing an additional burden on the state budget. Constitutional and legislative conflicts with existing laws were also cited as major concerns.
Business Community Advocates for Specialized Body
In a contrasting view, the Bahrain Society for the Development of Small and Medium Enterprises has welcomed the proposal. The society believes that a specialized fund would significantly benefit Bahraini institutions, merchants, and young entrepreneurs, fostering a stronger entrepreneurial culture and diversifying national income sources.
Taking the concept a step further, the society proposed the creation of a higher national authority for SME support. This body would operate under the office of the Crown Prince and Prime Minister and would comprise three specialized entities focusing on finance, legislation and policy, and entrepreneurship and innovation, all overseen by an expert board.
About Tamkeen
Tamkeen is Bahrain’s labor fund, a semi-autonomous government agency tasked with making the private sector the engine of economic growth. It focuses on providing support and training to Bahrainis and enterprises to enhance their productivity, drive innovation, and foster sustainable development within the kingdom.
Source: Al Ayam
