Bahrain has officially launched the Small and Medium Enterprises (SMEs) Fund, a $185 million initiative aimed at strengthening the role of local entrepreneurs and advancing the country’s Economic Vision 2030. The fund was unveiled during the Gateway Gulf Forum 2025 by His Excellency Abdullah Fakhro, Minister of Industry and Commerce and Chairman of the SME Development Board. The launch followed the signing of strategic agreements between the Bahrain Development Bank (BDB), National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), Al Salam Bank, and the Labour Fund (Tamkeen).
Strategic Collaboration for National Development
The SMEs Fund is a joint effort between public and private institutions designed to make financing more accessible for small and medium-sized businesses. It will be managed by the Bahrain Development Bank, offering Sharia-compliant financing solutions and profit support of up to 50% provided by Tamkeen. Applications for financing open on November 10, 2025, at BDB’s headquarters, marking the start of a new phase in Bahrain’s financial inclusion and entrepreneurship agenda.
Government Vision and Economic Impact
Minister Fakhro emphasized that the fund embodies the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, to empower the private sector and enhance SME contributions to national development. He noted that the fund represents a key pillar of the SME Development Board’s efforts to build a sustainable, innovation-driven economy. By strengthening access to capital and promoting entrepreneurship, Bahrain aims to increase the competitiveness of local enterprises and accelerate diversification away from traditional economic sectors.
Commitment from National Partners
Dalal Al Qais, Group CEO of Bahrain Development Bank, said the fund’s creation demonstrates a unified national commitment to advancing SME growth. She highlighted BDB’s pivotal role in driving innovation and ensuring financial inclusion across Bahrain’s business landscape. According to Al Qais, the fund is not merely about lending capital but about cultivating an environment where entrepreneurs can expand, innovate, and play an active role in shaping Bahrain’s economic future.
Empowering Through Tamkeen’s Support
Maha Mofeez, CEO of the Labour Fund (Tamkeen), stated that the initiative aligns with Tamkeen’s mission to enhance SME competitiveness and job creation for Bahrainis. She explained that Tamkeen’s financial support will reduce the cost of borrowing and make it easier for SMEs to scale operations and invest in productivity. Mofeez also underscored the broader impact on employment, innovation, and long-term value creation across the kingdom’s private sector.
Simplified and Flexible Financing Solutions
The fund’s structure is designed to meet the evolving needs of SMEs, offering flexible repayment terms of up to five years. Financing will be available through a simplified application process, with dedicated BDB relationship managers assisting business owners in identifying suitable financing solutions. By addressing funding gaps and simplifying access to credit, the initiative aims to elevate Bahrain’s standing as a hub for entrepreneurial growth and innovation in the region.
Driving Sustainable Economic Transformation
The launch of the SMEs Fund marks a major step in implementing Bahrain’s long-term economic strategy. It reflects the kingdom’s focus on leveraging public-private partnerships to diversify the economy and create a thriving ecosystem for entrepreneurs. Through this fund, Bahrain signals its determination to ensure small and medium enterprises remain central to its journey toward a competitive, inclusive, and sustainable future.
By mobilizing $185 million in financing and uniting key national institutions under a shared vision, Bahrain’s SMEs Fund represents more than just a financial instrument—it is a cornerstone of the country’s growth agenda. With Tamkeen’s profit support, BDB’s management expertise, and strong banking collaboration, the initiative is set to empower thousands of entrepreneurs, stimulate innovation, and reinforce Bahrain’s position as a regional leader in SME development.