Bahrain committed to supporting SMEs, promoting innovation

Manama, On June 27, the international community marks International Micro, Small, and Medium-sized Enterprises (MSMEs) Day in recognition of the contributions of these businesses to economic growth and driving creativity and innovation. Bahrain's government prioritises SME development, recognising their role in the national economy. The Small and Medium Enterprises Development Board, established in June 2017, includes the Ministry of Industry and Commerce, the Economic Development Board, Tamkeen, Bahrain Development Bank, and the Tender Board. The council aims to enhance entrepreneurship and SME growth. Noor bint Ali Al Khulaif, the Minister of Sustainable Development and CEO of the Economic Development Board, stated that the council targets increasing the SME sector's GDP contribution to 45% by 2026, highlighting its importance for economic diversification and job creation. Abdullah bin Adel Fakhro, the Minister of Industry and Commerce and Chairman of the SME Development Board, noted that SMEs constitute about 93% of Bahrain's main commercial enterprises. The council has implemented a strategic plan to boost SME establishment, competitiveness, GDP contribution, exports, and employment. He said that 68% of the strategic plan's initiatives have been completed, including 44 measures to support SMEs. The Ministry of Industry and Commerce launched the Business Incubators and Accelerators initiative in 2017, providing support services to entrepreneurs. By early 2024, the incubator occupancy rate was 83.4%. In 2019, the Ministry of Industry and Commerce introduced an electronic SME registration system, the first in Bahrain, to classify enterprises by size and provide customised support. Approximately 6,200 classification requests have been processed, with around 4,200 certificates issued. These certificates offer benefits like a 20% allocation in government procurement, a 10% preference in tenders, and a 7% discount on the health insurance programme 'Numo' (growth) provided by the Bahrain National Life Insurance C ompany. The Ministry also established a comprehensive SME database for better analysis and planning. The database allows monitoring data on percentages of small and medium enterprises owned by Bahrainis, women, and youth, in addition to other data related to the types of enterprises, their ages, and their distribution according to main and sub-sectors, as well as assessing the growth in the sizes of enterprises from small and medium to large.. Bahrain promotes local industries with the "Made in Bahrain" label, launched in 2020. Since then, 655 Bahraini factories have obtained this label. In 2022, the SME Development Board and the University of Bahrain launched the technology transfer office to protect intellectual property and support innovation. Jamal Abdulaziz Al Alawi, Secretary General of the Bahrain Tender Board, reported an 84.8% increase in awarded tenders and auctions to SMEs in the first quarter of this year compared to last year. The Tender Board awarded 86 government tenders worth BHD 25 millio n to SMEs, reflecting efforts to facilitate their participation. Maha Abdulhameed Mofeez, the Chief Executive of Tamkeen, emphasised the role of SMEs in Bahrain's economic development. Tamkeen supports SMEs with grants, financing, advisory services, and workforce development programmes. Dalal Ahmed Al Qais, CEO of Bahrain Development Bank Group, highlighted the bank's services, including the "Tijara" (trade) digital banking platform and "Tijara Express" financing. The bank has provided financing to over 16,000 entrepreneurs. Safaa Sharif Abdulkhaliq, CEO of Export Bahrain, emphasised the importance of helping SMEs access global markets through various solutions and services. The SME Development Board is committed to promoting SME growth and sustainability through strategic initiatives, positioning Bahrain as a hub for SME support and development. Source: Bahrain News Agency