Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the SME Development Board, expressed his utmost gratitude for the unwavering support of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Prime Minister, and Chairman of the Economic Development Board for the SMEs Development Board.
During the Economic Development Board meeting chaired by HRH Crown Prince and Prime Minister on June 18, the latest updates of the strategic plan of the SMEs Development Board were highlighted in addition to key performance indicators and achievements. Sixty seven per cent of the initiatives of the board have been completed, which contributes significantly to the growth of the small and medium enterprises (SMEs) sector.
Minister Fakhro stated that since its establishment in 2017, the board has made tremendous progress in achieving key initiatives in partnership with its members and the partner authorities throughout Bahrain.
The board will focus on positioning the kingdom of Bahrain as a premier destination for startups, SMEs, with an aim to cultivate a conducive environment for their growth and success, said Fakhro.
The strategic plan of the SMEs Development Board aims to facilitate access to financing for SMEs, provide access to markets, streamline processes for a better business environment, develop skills, and foster innovation to boost their growth and promote economic value, he added.
Some of the key initiatives led by the board include the licensing of business incubators and accelerators, the establishment of Export Bahrain, crowdfunding, preference for SMEs in government procurement, and the establishment of an SMEs registration system that classifies enterprises based on size to benefit from the allocated advantages.
The Ministry of Industry and Commerce has launched the SMEs database as the first of its kind in the Kingdom of Bahrain, which provides extensive data about businesses that are part of this sector, the minister said.
Micro, small and medium enterprises make up 93.3% of all commercial registrations, with 81% of those owned by Bahrainis, 39% owned by women and 23% owned by youth," he added.
The database makes it possible to assess the growth of small and medium enterprises to larger one, he explained.
Minister Fakhro pointed that the Bahrain Innovation and Technology Transfer Center was launched in partnership with the University of Bahrain as the first technology transfer center of its kind in the Kingdom, which is responsible for protecting any type of Intellectual Property (IP) generated by academics and students from the University of Bahrain. The center also helps in the licensing and marketing of inventions and products, thereby providing financial return for innovators.
On his part, Khalid Humaidan, Chief Executive of Bahrain Economic Development Board, stressed the importance of focusing on the continued development of the non-oil economy, where the SME sector plays a major role in Bahrain’s economic diversification efforts.
He went on to commend the key achievements and initiatives delivered by the SMEs Development Board, which continues to work towards increasing its contribution to the national economy fostering sustainable long-term growth.
Jamal bin Abdulaziz Al Alawi, Secretary General of the Bahrain Tender Board, said the Tender Board had awarded 63 government tenders and bids with a value of 13.5 million Bahraini dinars, benefiting 56 SMEs in the first quarter of the year.
The Tender Board has recently implemented the second package of initiatives related to the government procurement program for SMEs, which included allocating a certain number of tenders for small and medium enterprises and encouraging partnerships between them through the Synergy (Partnership Arrangements) initiative, he said.
It also signed a memorandum of understanding with the Bahrain Development Bank to provide financial support and certain facilities to SMEs to enable them to provide the necessary guarantees when participating in government tenders, he added.
Al Alawi noted that these initiatives have led to an impressive rise in the share of tenders allocated to SMEs, with 11% of the total value of government tenders earmarked for these enterprises.
The target is to reach a 20% allocation rate. as a result, SMEs in the kingdom were awarded 541 tenders, worth a total of $457 million, with 315 SMEs benefiting, he said.
Maha Abdul Hameed Mofeez, CEO of Tamkeen, praised the SMEs Development Board for its efforts in developing small and medium enterprises (SMEs) by introducing several initiatives that would help to provide the necessary support for this sector.
Tamkeen is striving to provide the solutions necessary to address the challenges faced by SMEs, such as gaining access to adequate financing to ensure the sustainability of projects, she said.
Mofeez said Tamkeen has established partnerships with various local banks to provide financing solutions, in addition to collaborating with the Ministry of Industry and Commerce, the Economic Development Board, and the Bahrain Development Bank to launch the "Startup Bahrain Pitch", which enables startups to present their entrepreneurial ideas to a specialized jury in order to obtain investment opportunities and cash prizes.
Tamkeen is also committing to the development of national workers by providing them with the necessary skills through training partnerships in fields such as software engineering, cybersecurity, and others, she added.
Dalal Al Qais, Chief Executive Officer of the Bahrain Development Bank, affirmed that the Bahrain Development Bank is committed to empowering SMEs through the launch of the first financial technology platform for SMEs, called "Tijara", in February 2023.
This platform serves to address the financing challenges faced by these enterprises and facilitate the opening of accounts for small and medium-sized companies, she explained.
Al Qais further highlighted that this initiative is part of the Bank's rapid investment into its digital transformation journey.
"This trend reflects the Bank's awareness of the rapid changes taking place in this vital sector and its commitment to providing the necessary support to establishments in this sector to ensure their easy access to financing solutions and enable them to easily manage their commercial transactions for the prosperity and growth of their business," she said.
"The bank is making significant strides to promote the development of small and medium enterprises (SMEs) in the Kingdom by investing and managing the "Al Waha" Fund of Funds. Notably, the Al Waha Fund has successfully achieved 95% of its target investment value within just 5 years, primarily through investing in venture capital companies, which then allocate funds to technology companies".
Safa Abdulkhaliq, CEO of Export Bahrain, highlighted the importance of Export Bahrain and its role in increasing exports and providing access to global markets.
She noted that Export Bahrain is employing all its capabilities and efforts to contribute to raising the proportion of exports and simplifying the business and export environment.
Export Bahrain is taking many measures, initiatives and solutions to make national products and services more competitive in global and regional market, she said.
The Export Bahrain CEO added that since its launch in November 2018, Export Bahrain has been successful in facilitating the export of goods and services worth $500 million (BD 188 million) targeting small, medium, and large enterprises.
"It has also provided access to 86 global markets and established over 40 international partnerships, allowing 26% of enterprises to diversify their markets, with 21% of them being young exporters in various sectors," she said.
"To enhance the enterprises' access to global markets and platforms, Export Bahrain has continued to improve its export initiatives, supporting 25% of customers in their first export experience. Additionally, the percentage of women exporters has reached 30%, and the proportion of exporting services is 22%".
As the world marks the annual World Small and Medium Enterprises Day on the 27th of June, the SMEs Development Board of Bahrain is committed to promoting the growth and sustainability of small and medium enterprises through its various initiatives.
These initiatives are made possible through the continued cooperation and collaboration with the private sector to provide the necessary resources and support for SMEs to make significant contributions to the kingdom's economy in terms of GDP, exports, and employment.
The board is also proactively monitoring and keeping up to date on developments in order to launch more impactful initiatives that will assist the development of small and medium enterprises.
Source: Bahrain News Agency