BBK commends SME Fund’s early success in financing Bahraini enterprises

10 Sep 2026

BBK, a leader in retail and corporate banking in the Kingdom of Bahrain, has highlighted the growing contribution of the SME Fund to supporting Bahraini enterprises, following the delivery of BD 2.879 million in financing to 46 businesses since March 2026.

The Fund’s early performance reflects its ability to channel financing to businesses with varying operational and development needs. Small enterprises represented 72% of beneficiaries, while medium-sized enterprises accounted for 22% and micro-enterprises for the remaining 6%.

Financing was also distributed across a diverse range of economic activities. The trading sector received 59% of the total financing provided, followed by services at 27% and manufacturing at 9%. The remaining financing supported businesses operating in transportation, technology, media and communications.

The SME Fund is a national initiative established through an investment partnership between Bahrain Development Bank (BDB), BBK and other local banks with support from the Labour Fund (Tamkeen). Launched in November 2025 with a total value of more than US$185 million, the Fund is managed by BDB.

Commenting on the investment in the Fund, Mr. Mohamed Al Rayes, Chief Treasury & Investments Officer of BBK, said: “We are pleased with the positive contribution achieved by the SME Fund, which demonstrates the value of bringing together banking expertise and national resources to deliver practical financing solutions that address the requirements of Bahraini enterprises. The diversity of the beneficiaries and sectors supported is equally encouraging, as it shows that the Fund is reaching a broad segment of Bahrain’s business community.”

“At BBK, we view our equity participation in the SME Fund as a strategic investment in the growth and resilience of Bahrain’s private sector. By combining capital and active institutional participation, we believe the Fund can contribute to support viable Bahraini enterprises, create opportunities for growth and contribute to the Kingdom’s broader economic development. For BBK, beyond the capital committed, we actively contribute to the Fund’s development and long-term success through the representation of BBK’s senior executives on the Fund’s Board and Committees. This enables us to contribute our banking expertise, market knowledge and institutional experience to the Fund’s governance and strategic direction, working alongside our partners to support disciplined governance, effective capital deployment and

generation of sustainable economic value for Bahraini businesses and Bahrain’s economy.

BDB’s Chief Banking officer, Mr. Ali Alaradi, commented: “As the Fund’s manager, BDB draws on its vast experience to develop a deeper understanding of the evolving needs of businesses. This enables us to structure financing solutions around their operating models, cash flow requirements and business priorities, while ensuring the Fund’s resources are deployed effectively to deliver sustainable economic impact.”

“Looking ahead, our focus is on advancing an efficient and flexible financing model that facilitates access to funding while maintaining a high-quality and sustainable portfolio. We are also refining the Fund’s delivery mechanisms and financing processes to remain responsive to changing market conditions and business needs. This reflects BDB’s commitment to managing the Fund on sound banking principles, ensuring it delivers its objectives and generates meaningful, long-term value for Bahrain’s economy.”

The Fund offers Sharia-compliant financing for a variety of business purposes, including working capital, liquidity requirements, operating expenses and business continuity. Financing is available with flexible repayment periods of up to five years and streamlined application procedures. Subject to the applicable eligibility criteria and terms, Tamkeen subsidizes up to 50% of the financing profit rate.

Eligible enterprises operate across sectors identified as priorities for Bahrain’s economic development, including tourism, manufacturing, logistics, information technology and the digital economy, financial services, healthcare and education, in addition to other productive and service-oriented activities.

BBK affirmed its commitment to working closely with the Fund’s partners to build on its early momentum and deliver broader, more sustainable outcomes for Bahrain’s business community. By helping viable enterprises access the financing required to operate, invest and compete, the Fund can contribute to a more dynamic private sector and advance the long-term ambitions of Bahrain Economic Vision 2030.