Bahrain Development Bank (BDB) has announced a new initiative, which is providing preferential profit rates for small and medium enterprises (SMEs) holding the SMEs Classification Certificate from the Ministry of Industry, Commerce and Tourism (MOICT).
This initiative is part of the cooperation and coordination between the MOICT represented by SMEs Development Directorate and BDB aiming to enhance the support programs for the SMEs sector and increase the competitiveness of these enterprises in the Bahraini market. Obtaining the Classification Certificate also includes a package of additional benefits, most notably the allocation of a 20% share of the value of government purchases and tenders for SMEs, giving SMEs a 10% advantage in the bidding of service facilities that are held within government departments and in government tenders as well in addition to the opportunity to benefit from a training program for building the capacity of SMEs in cloud computing for free.
Commenting on this, Mrs. Dalal Al Qais, CEO of Bahrain Development Bank said: “This initiative reflects the extent of the strategic partnership between BDB and the Ministry of Industry, Commerce and Tourism in terms of supporting and developing SMEs in the Kingdom of Bahrain. It also demonstrates the coordination of efforts and initiatives to introduce SMEs with effective programs and mechanisms to offer financing facilities at a lower cost and expand the benefits allocated to SMEs holding the Classification Certificate, which eventually impacts the performance of these institutions in playing a prominent role in the economic development process “.
Mrs. Al Qais also explained that the Bank will begin applying the grants of preferential rate to SMEs, who hold the SMEs classification certificate, from January 2022, only for new financing applications that meet the terms and conditions of the Bank and in accordance with the bank’s funding standards and requirements.
On her part, Ms. Shaikha Al Fadhel, Director of SMEs Development at the Ministry of Industry, Commerce and Tourism said: “Providing preferential profit rates for SMEs by Bahrain Development Bank will have a fundamental role in facilitating access to finance for this sector, which is a key driver of the national economy, where facilitating access to finance is considered one of the most important strategic pillars of the SMEs Development Board. This initiative was a result of the synergy and integration of efforts between the two entities to find solutions to one of the most significant challenges facing SMEs during their business stages and their pursuit to benefit from the most appropriate financing programs to start or develop their activities in the markets.”
Ms. Shaikha Al Fadhel also praised the active role of Bahrain Development Bank and their great cooperation in launching this initiative that enhances and develops the investment environment in the Kingdom and encourages entrepreneurship, and she invited SMEs’ owners to take this opportunity and benefit from this initiative and the rest of the advantages associated with the classification certificate.
Last Updated: 04 Jan 2022