Bahrain - Industry and Commerce Minister and Small and Medium Enterprises (SMEs) Development Board chairman Abdulla bin Adel Fakhro announced the launch of the SME Fund, a national financing initiative designed to boost the private sector.

The announcement, made during the Gateway Gulf 2025 Forum, followed the signing of strategic partnership agreements between four key financial institutions: Bahrain Development Bank (BDB), National Bank of Bahrain (NBB), Bank of Bahrain and Kuwait (BBK), and Al Salam Bank.

The new fund, managed by BDB, will provide Sharia-compliant financing with a total value exceeding $185 million.

The Labour Fund (Tamkeen) will cover up to 50 per cent of the profit rate, lowering the cost of financing for small and medium enterprises.

The fund offers repayment terms of up to five years, aiming to bridge persistent funding gaps through simplified application procedures.

It will officially open for applications next Monday.

Mr Fakhro highlighted the fund as a key milestone in advancing the government’s mandate to strengthen the private sector and empower SMEs through easier access to financing. The initiative aligns with Bahrain’s Economic Vision 2030 by fostering a sustainable, innovation-driven economy.

BDB Group chief executive Dalal Al Qais said the launch underscores the bank’s commitment to empowering businesses to “expand, innovate, and contribute meaningfully to Bahrain’s sustainable economic development.”

Tamkeen chief executive Maha Mofeez confirmed that Tamkeen’s support builds on its efforts to help businesses secure necessary financing to achieve their development goals and strengthen their role as key contributors to national progress.

The initiative was also supported by the participating commercial banks.

Al Salam Bank Group chief executive Rafik Nayed said, “Al Salam Bank is pleased to partner in this national initiative. The SME segment plays a central role in driving economic growth and fuelling innovation. Our participation reflects our continued dedication to nurturing entrepreneurship and strengthening collaboration to build a more inclusive and diversified economy.”

BBK Group chief executive Yaser Alsharifi said: “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.”

NBB Group chief executive Usman Ahmed said: “This fund marks a turning point for Bahrain’s entrepreneurial ecosystem. 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.”

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