MANAMA: The Bahrain Development Bank (BDB) has unveiled a new initiative aimed at enhancing support programmes for small and medium enterprises (SMEs) as well as increasing their competitiveness in the Bahraini market.

The initiative, which is represented by SMEs development directorate in co-operation and co-ordination with the bank and the Industry, Commerce and Tourism Ministry, will grant SMEs with a classification certificate and provide preferential profit rates.

“Providing preferential profit rates for SMEs by BDB 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,” said industry SMEs development director Shaikha Al Fadhel.

“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 programmes to start or develop their activities in the market.”

Obtaining the classification certificate also boasts additional benefits, most notably the allocation of a 20 per cent share of the value of government purchases and tenders for SMEs. That gives SMEs a 10pc advantage in the bidding of service facilities that are held within government departments and in government tenders.

They will also benefit from a free training programme for building the capacity of SMEs in cloud computing.

According to BDB chief executive Dalal Al Qais the bank will begin applying the grants of preferential rate to SMEs, who hold the SMEs classification certificate, from this month.

That is 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.

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