MANAMA: The National Bank of Bahrain (NBB) has launched a new lending scheme that aims to support locally-owned businesses.

Targeted at small and medium enterprises (SMEs), Tamweel Al Watani seeks to aid them in their sustainability goals, while simultaneously improving their cash flow position.

As part of the new scheme, SMEs are eligible for up to BD100,000 in facilities, with repayment plans of up to five years.

And to further support to the kingdom’s SME sector, the bank is providing an easier application process and quick turnaround for applicants to the scheme, officials told a Press conference yesterday.

Arif Janahi, head of commercial and SMEs at NBB, said: “We are pleased to announce the new lending scheme for small and medium enterprises. The pandemic had a significant impact on the economy, and many efforts have been made to ensure its long-term survival. In line with the leadership directives to support small and medium business owners, our new scheme is introduced to play an integral part in the continuous efforts towards the revival and sustainable development of our local market in the near future.”

Businesses have to meet certain eligibility requirements to qualify for the new scheme, including meeting the Industry, Commerce and Tourism Ministry’s Small and Medium Enterprises (SME) definition and preferably hold the SME classification certificate.

Last October, the Industry, Commerce, and Tourism Ministry rolled out a new registration system for SMEs with additional incentives tailored for them.

The new registration system classifies enterprises based on their size before issuing a classification certificate that can be used to access various benefits offered by the government.

As of 2019, SMEs accounted for nearly 30pc of Bahrain’s GDP, had an 8pc share of national exports and employed more than half the Bahrainis working in the private sector.

They also made up more than 98pc of the 92,000 companies in Bahrain as of 2018.

According to NBB head of business management for commercial and SMEs Eyad Ebrahim, the bank continues to work with its customers to overcome the impacts of the pandemic on the economy.

“We always try to introduce inclusive solutions with more ease, aimed to help sustainable development of SMEs. Locally-owned small and medium businesses are an important pillar of the economy and our goal with the new scheme is to provide the required support to viable SME businesses,” he added.

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