In 2025, International Finance recognised Bahrain Development Bank (BDB) as the ‘Most Innovative Islamic SME Finance Bank – Bahrain,’ while the bank’s Group Chief Executive Officer, Dalal Al Qais, was awarded the ‘Best CEO Strategies in Digital Transformation – Banking.’
These honours point to a period of substantive institutional change, during which the bank has redefined its role as a development lender serving small and medium enterprises.
For over three decades, BDB has functioned as Bahrain’s primary funding vehicle for MSMEs.
Since the appointment of Dalal Al Qais as Group Chief Executive Officer in December 2021, the bank has moved beyond a traditional loan-based model, establishing a financial services platform aligned with how SMEs operate, manage capital, and grow.
Dalal Al Qais brought more than 21 years of experience across retail banking, SME finance, and digital operations to Bahrain Development Bank.
Her first phase of leadership focused on organisational realignment, including appointing new senior management and creating a dedicated Strategy & Transformation division to oversee execution.
In 2022, BDB introduced a four-year transformation strategy anchored in customer centricity, digitisation, data analytics, and sustainability.
While aligned with Bahrain’s ‘Economic Vision 2030,’ the strategy sought to enable businesses to grow locally and internationally.
Tijara: Digitising SME Banking
The most visible outcome of this strategy is tijara, Bahrain Development Bank’s digital banking arm for SMEs. Between 2022 and 2024, the platform recorded a 931% increase in user base, reflecting strong market adoption.
A key differentiator was simplifying account opening requirements.
The platform also introduced call accounts offering competitive annual returns without fixed-term restrictions, combining liquidity with yield.
BDB further expanded SME access to liquidity through the launch of Bahrain’s first invoice discounting solution for SMEs in December 2023.
With working capital constraints cited as a primary financing challenge for small businesses, the ability to convert receivables into immediate cash addressed a prevalent market gap.
Behind the platform’s functionality sat a comprehensive infrastructure overhaul. BDB replaced its core banking system, migrated key operations to the cloud, and upgraded network and security frameworks.
These investments resulted in significant improvements in system performance, uptime, and cybersecurity resilience.
Islamic Finance Aligned With SME Realities
Islamic financing constitutes the majority of Bahrain Development Bank’s active portfolio, with MSMEs accounting for the bulk of Shari’a-compliant clients. Rather than positioning Islamic finance as a parallel offering, BDB integrated it into its core SME proposition.
The Riyadat Women Business Finance Scheme exemplifies this approach. Enhancements introduced in 2023 included subsidised profit rates of up to 50%, extended tenure of up to seven years, and tailored financing tracks for new and established enterprises.
Eligible use cases range from equipment and technology to branding, exports, and expansion.
Through its partnership with Tamkeen, BDB also delivers Islamic financing schemes aligned with specific stages of business development.
In Q4 2025, BDB further strengthened its development mandate with the launch of a BD 100 million Shari’a-aligned National SMEs Growth Fund.
Structured as a five-year private credit vehicle, the fund targets growth-stage enterprises across priority sectors, including tourism, logistics, financial services, health, education, IT and the digital economy, and industrial services.
Financing of up to BD 200,000 per SME is available, with allocations dedicated to sustainable and green projects.
Building Institutional Capabilities Beyond Technology
Bahrain Development Bank’s transformation extended beyond platforms and systems. The bank invested in employee development across digital capabilities, customer engagement, and leadership.
Strategic partnerships with public and private sector stakeholders further reinforced this approach.
Collaboration with Tamkeen, the Ministry of Finance, and the Supreme Council for Women supported national development objectives, while partnerships with the BENEFIT Company and Bahrain FinTech Bay connected BDB to the wider fintech ecosystem.
Social impact is also deeply integrated into BDB’s operating model.
Programmes such as Riyadat support women’s economic participation, while interest-free financing for fisheries and agriculture contributes to food security.
Education loans and sustainability-focused financing initiatives further align the bank’s activities with Bahrain’s ‘Economic Vision 2030’ and the ‘UN Sustainable Development Goals.’
A Model Built For Sustained Development
“These awards recognise progress that is measured in businesses supported and livelihoods strengthened. Our commitment remains to enabling SMEs to move forward with confidence,” Group CEO Dalal Al Qais told International Finance Magazine.
Bahrain Development Bank has demonstrated that digital transformation is most effective when grounded in customer needs, supported by disciplined execution, and aligned with a broader development mandate.
The International Finance Awards acknowledge the outcomes of this approach, while highlighting a model of SME banking built for relevance, resilience, and long-term impact.