Manama: Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the Advisory Board of the SME Fund, commended the Fund’s role as a key enabler of Bahrain’s growing micro, small and medium enterprise (SME) sector. He also highlighted the financing solutions provided by the Fund to address the varied needs of businesses and facilitate their access to capital, in line with the directives of the esteemed Government, led by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, to support the private sector and empower SMEs to achieve sustainable growth.
These remarks were made during the SME Fund Advisory Board meeting held on 8th July at the Ministry of Industry and Commerce headquarters. During the meeting, His Excellency noted that the recent adoption of the updated classification for micro, small and medium enterprises (MSMEs) represent an important step in further regulating the sector as it allows businesses to better benefit from programmes offered by national entities. He also emphasised the vital role of SMEs in strengthening the private sector’s contribution as a major driver of the Kingdom’s economy, thereby supporting the wider economic diversification objectives in line with Bahrain Economic Vision 2030.
The SME Fund was established in November last year with a total value of USD 185 million through a strategic partnership between Bahrain Development Bank (BDB), Bank of Bahrain and Kuwait (BBK), National Bank of Bahrain (NBB) and Al Salam Bank, with support from the Labour Fund “Tamkeen” and under the management of BDB. The Fund also benefits from the support and guidance of the SME Development Council at the Ministry of Industry and Commerce, reinforcing its alignment with national priorities aimed at supporting the growth and development of SMEs.
Since its establishment, the SME Fund has continued to support MSMEs across sectors of national importance. It provides financing solutions designed to meet business needs, including working capital financing, liquidity management, coverage of operating expenses and support for business continuity. Since March 2026, 46 enterprises have benefited from the Fund’s financing, with total funding reaching BD2.879 million. Small enterprises received the largest share of financing at 72%, followed by medium enterprises at 22% and micro enterprises at 6%. In terms of sectoral distribution, the trade sector accounted for 59% of total financing, followed by services at 27% and manufacturing at 9%, in addition to financing extended to the transportation, technology, media and telecommunications sectors, reflecting the diversity of economic activity supported by the Fund.
Through these financing solutions, the SME Fund enables businesses to sustain their operations, enhance their capacity for expansion and contribute to job creation. This supports national efforts to increase the private sector’s role in driving development, advancing economic diversification and fostering a more competitive and sustainable business environment.
“The SME Fund is one of the leading national initiatives that embodies the integration of public and private sector efforts to support Bahraini enterprises and enable their growth and sustainability. The achievements recorded since the Fund’s inception demonstrate the strength of this model in delivering financing solutions that respond to the needs of SMEs, while supporting their ability to expand, create employment opportunities and encourage innovation,” Ghassan Ghaleb Abdulaal, Chairman of the Board of Directors of BDB, said.
“We believe that investing in this sector is an investment in the future of the national economy, given the pivotal role of SMEs in advancing economic diversification and enhancing the competitiveness of the Kingdom of Bahrain. We will continue working with our partners to develop a more efficient and flexible financing ecosystem that meets the aspirations of entrepreneurs and institutions, while contributing to the objectives of Bahrain Economic Vision 2030.”
“The Fund plays an important role in enabling SMEs to access the financing they need to sustain their operations, expand their businesses and pursue growth opportunities. It also supports entrepreneurs and companies across different stages of development, positively impacting job creation, innovation, and the contribution of this vital sector to economic development. This initiative aligns with the Kingdom’s efforts to diversify the economy, build a sustainable business environment and develop financing solutions that meet market needs and support long-term growth,” Dalal Al Qais, Group Chief Executive Officer of BDB; Director of the SME Fund and one of the Fund’s investors, said.
The SME Fund is a national initiative under the #TeamBahrain umbrella, aimed at providing financing to eligible enterprises operating across tourism, industry, logistics, information technology and the digital economy, financial services, healthcare, education and other priority economic sectors.
