Bahrain Launches US$185 Million SME Fund

Bahrain has rolled out a new Small and Medium Enterprises (SME) Fund, managed by Bahrain Development Bank (BDB), with participation from the National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank.

The initiative, announced by HE Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the SME Development Council, was unveiled during the Gateway Gulf 2025 Forum. 

Supported by national labor and enterprise support agency Tamkeen, the fund aims to strengthen Bahrain’s SME sector and contribute to the country’s Economic Vision 2030 through public–private collaboration. It seeks to enable small and medium enterprises to access financing and expand their role in the economy. 

BDB will manage the fund, which will offer shariaa-compliant financing exceeding $185 million. With Tamkeen covering up to 50 percent of the profit rate, the financing includes repayment terms of up to five years and simplified application procedures. 

Applications for funding will open on Monday, November 10, 2025, at BDB’s headquarters in the Diplomatic Area. A team will be available to assist business owners with the application process, and inquiries can be made by calling 17511000 for information and support. 

Fakhro said the launch of the SME Fund marks a significant step in advancing the government’s efforts—led by HRH Prince Salman bin Hamad Al Khalifa, Bahrain's Crown Prince and Prime Minister—to strengthen the private sector and expand SME access to financing. He added that the fund is one of the strategic initiatives introduced by the SME Development Council to promote a sustainable, innovation-oriented economy and reinforce the role of entrepreneurs in national development. 

He noted that the initiative supports the Ministry of Industry and Commerce’s efforts to enhance Bahrain’s entrepreneurship landscape through public–private partnerships that encourage innovation, business growth, and greater participation in realizing Bahrain’s Economic Vision 2030. 

In a statement, BDB Group CEO Dalal Al Qais, 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.”  

Tamkeen CEO Maha Abdulhamid Mofeez said that her organization’s support for the SME Fund reflects its continued commitment to advancing SME growth by facilitating access to financing in collaboration with partners from the banking sector. She explained that this partnership helps businesses meet their development objectives, improve productivity, and reinforce their contribution to national progress while creating more employment opportunities for Bahraini talent. 

Yaser Alsharifi, Group CEO 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.”  

NBB Group CEO Usman Ahmed 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 CEO of Al Salam Bank, concluded, “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.”