Manama - A BD100 million liquidity fund announced last month is among key government initiatives aimed at supporting small and medium enterprises (SMEs), a top minister has said.

According to Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa the idea is to help companies to get cash flows enabling their growth, stressing that the ministry is co-ordinating with the Bahrain Chamber of Commerce and Industry (BCCI) to ensure that companies that need support receive funding from the liquidity fund.

He said facilitating access to funding is one of five areas of focus for the government under a plan to boost SMEs, enabling them to contribute more to Bahrain’s GDP.

Regulation of the business environment, developing skills, encouraging innovation and access to new markets are the others, he said.

The minister was speaking in a panel discussion during the 18th Arab Businessmen and Investors Conference (ABIC) at The Ritz-Carlton Bahrain.

Shaikh Salman also spoke about Tamkeen’s experience, where 80 per cent of the revenues received from work permit fees are being invested and re-injected into institutions to support their growth, increase their productivity and develop human resources.

Regarding the role of the government as a facilitator, the minister stressed that it is important for regulators to make sure that capital flows to the right place or sectors that need capital, and the ease of access to these funds.

Moderated by CNN International Anchor Richard Quest, the discussion also featured Zamil Industrial Investment Company chief executive and executive director Abdulla Al Zamil and IDAL, Lebanon chairman and general manager Dr Mazen Souied.

SMEs account for almost 30pc of the national GDP and provide employment to nearly 75pc of the private sector workforce.

They also make up more than 90pc of the 6,000-plus enterprises in the kingdom.

The Cabinet has introduced a new quota on all public tenders, stipulating that 10pc of all government contracts awarded should go to SMEs, said the minister.

 

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