Established in 1992 to catalyse Bahrain’s economic advancement, the Bahrain Development Bank (BDB) has long served as a cornerstone of the Kingdom’s financial ecosystem. From the outset, BDB was established to advance sustainable development across Bahrain by offering critical financing support to the country’s Small and Medium-Sized Enterprises (SMEs).
Today, BDB’s role as a trusted partner in Bahrain’s financial sector is further accentuated by its commitment to innovation, strategic investments, and economic diversification. What began as a specialist institution in 1992 has evolved into Bahrain’s primary hub for SME development, one that is actively working to build a stronger entrepreneurial ecosystem in the Kingdom.
Aligned with “Bahrain Economic Vision 2030,” BDB has adopted a dynamic strategy to stimulate business activity and support the sustained growth of the vital SME sector.
Active participant in Bahrain’s growth journey
Bahrain’s SME Development Board wants to establish the country as a leading hub for startups and emerging businesses by formulating promising developmental strategies that will increase the contribution of these enterprises to the national GDP, boost exports, and create quality employment opportunities for the national workforce.
This vision aligns with Bahrain’s Economic Recovery Plan, which includes 43 initiatives focused on SME development. The plan is a collaborative effort involving the Economic Development Board (EDB), the Labour Fund (Tamkeen), the Bahrain Development Bank (BDB), the Ministry of Youth Affairs, and the Tender Board. These stakeholders are working together to create a supportive infrastructure for SMEs, recognising their pivotal role in cultivating new industries.
Currently, SMEs constitute approximately 93% of Bahrain’s commercial establishments. This significant presence underscores the importance of targeted initiatives to support and enhance the sector’s contribution to the national economy. BDB plays an active role in fulfilling this strategy by providing SMEs with essential growth capital.
With the vision of becoming the regional leader in digital solutions and financial services for SMEs, BDB wants to enable businesses to grow locally and internationally by facilitating access to finance and export markets.
Over the years, BDB has transformed from being a traditional bank into an agile, innovation-driven institution deeply committed to supporting Bahrain’s growing economic landscape. Established during the early days of the Kingdom’s modern economic growth journey, the bank has provided critical financial support to enterprises at key milestones, reinforcing its position as a long-standing contributor to national progress.
Leading BDB’s emergence as a guiding force in Bahrain’s SME revolution is Dalal Al Qais, the bank’s Group Chief Executive Officer. A banking veteran with professional experience spanning over 20 years in the banking and financial industry, Dalal Al Qais possesses deep-rooted knowledge in areas such as retail, SME, digitisation, as well as risk across conventional, Islamic, and international banks.
She earlier served as Chief Retail Banking Officer for the region at Standard Chartered Bank, apart from donning the role of Chief Retail Banking and Wealth Management Officer at the Bahrain Islamic Bank (BisB).
Since assuming charge at BDB, Dalal Al Qais has steered the bank towards a new era of growth marked by innovation and inclusivity. Her leadership at BDB and dedication to the growth of Bahrain’s SME sector have been a game-changer for the organisation.
BDB’s Role in supporting SMEs
BDB offers business loans with flexible terms and competitive interest rates that accommodate the varied needs of emerging enterprises.
“BDB plays a major role in driving Bahrain’s economic diversification. By channelling funding into innovative projects and supporting sectors beyond traditional industries, the bank contributes significantly to the nation’s Vision 2030 goals. Its proactive support for sectors such as technology, renewable energy, and modern manufacturing has enabled the Kingdom to reduce reliance on conventional industries while making way for a more dynamic and inclusive economy. Our strategic investments and forward-thinking initiatives have been integral to creating job opportunities, enhancing competitiveness, and ensuring long-term economic resilience,” said Dalal Al Qais.
In April 2024, BDB entered into a groundbreaking partnership with Export Bahrain to introduce tailored export and supply chain financing solutions that offer competitive interest rates to support businesses in expanding into global markets. With a focus on facilitating international product and service exports, this initiative aligns seamlessly with the SME Development Board’s 2022-2026 Strategy, aiming to encourage a vibrant ecosystem of thriving businesses.
In November 2024, BDB, in partnership with a consortium of leading local and regional banks, launched the Kingdom’s first $265 million (BD100 million) Private Credit SME Growth Fund. The fund aims to accelerate economic development by providing critical financial support to SMEs.
The Central Bank of Bahrain (CBB) is offering incentives to participating banks, allowing their funded portions to count towards their share of SME lending with a risk-weighted average of 25%. The fund’s capital is pooled from key local and regional financial institutions, demonstrating a strong commitment to Bahrain’s SME sector. Managed by BDB with the support of Tamkeen, the fund was developed in collaboration with the Ministry of Industry and Commerce (MOIC), National Bank of Bahrain (NBB), Al Salam Bank, Bank of Bahrain and Kuwait (BBK), and Khaleeji Commercial Bank. It focuses on high-value sectors with significant export potential and job creation opportunities.
The fund has a 10-year structure, with a five-year deployment period dedicated to loan disbursements. Contributing to Bahrain’s sustainability goals, up to 10% of the fund will be allocated to support green economy initiatives.
Key products and services offered
BDB’s Investment Division supports its mission to accelerate the development of SMEs in the Kingdom. Targeting establishments that have the potential to grow locally and internationally, and have high commitment from both their owners and management, investments can be made at different levels of their business cycle.
Apart from heavily focusing on sectors like healthcare, manufacturing, food security, financial institutions, logistics, and technology, BDB has also shown keen interest in supporting companies that promote import substitution, export opportunities, job creation, value addition, and foreign investment.
“Our extensive experience across various industries stems from a deep understanding of the unique challenges and opportunities faced by SMEs in Bahrain. The Director nominated by the bank on the board of the investee companies supports and guides the firm to achieve its full potential and reach its goals. The Investment Division provides minority interest equity, which is typically up to 20% of the paid-up equity share capital, as a shareholder in private companies as a means of funding,” BDB’s Group CEO added.
BDB offers a comprehensive range of financial products, services, and solutions, including business loans, advisory support, and diverse financing options tailored for entrepreneurs. Prominent among these offerings is Sharia-compliant Finance, which offers business owners to secure a minimum amount of BHD 3,000 to finance specific assets like plant or machinery. The bank also provides working capital loans with comfortable repayment tenors and grace periods for sectors like manufacturing, ICT (information and communication technology), agribusiness, private education, healthcare, tourism, trading, transportation, and other services.
BDB has also partnered with Labour Fund Tamkeen to introduce “BDB & Tamkeen Finance,” a suite of soft financing programmes for MSMEs offered in accordance with Islamic Sharia principles. Through this collaboration, Tamkeen facilitates access to finance by subsidising a percentage of the loan profit for eligible applicants under applicable schemes.
Key offerings under this joint initiative include Start Your Business, which is designed to support new enterprises within their first three years of operation. This programme empowers early-stage businesses with financial solutions tailored to their growth requirements, aiming to foster entrepreneurship, productivity, and innovation. Go Digital is another initiative that encourages MSMEs to integrate relevant digital technologies into their operations, helping them advance their business models, increase efficiency, and improve agility. Business Growth is targeted at scaling existing enterprises by providing financial support for strategic objectives such as entering new markets, launching new products or services, franchising, expanding locally, or boosting exports. Lastly, Business Turnaround supports struggling enterprises by providing temporary access to financing, along with a structured recovery plan to help them stabilise operations and return to sustainable growth.
In addition to these programmes, BDB provides trade finance instruments to facilitate commercial activity. These include letters of credit (L/C), issued on behalf of importing clients to guarantee payments to exporters, and various types of Letters of Guarantee. These guarantees, such as Bid Bonds, Performance Bonds, and Advance Payment Guarantees, are commonly used in project-based transactions to support clients’ contractual obligations.
The bank also offers an overdraft facility for its client MSMEs, which essentially authorises them to overdraw their accounts up to an agreed limit. Such facilities are normally granted to meet working capital requirements arising from the customer’s operating cycle.
BDB’s role in financial inclusion
Financial inclusion is deeply embedded in BDB’s mission to empower underserved and high-potential business segments across the Kingdom. For over three decades, the bank has been a strategic enabler of business growth, a role it continues to play through its impactful initiatives and innovative financing solutions that directly address the sector’s evolving needs. BDB has become a transformative force for startups, women entrepreneurs, and rural businesses’ access to finance.
In November 2023, BDB collaborated with The Supreme Council for Women, the BENEFIT Company (the Kingdom’s leading innovator in fintech and electronic financial transactions services) and Bahrain FinTech Bay to establish the Innovate for Bahrain Centre (I4B) at the Riyadat Centre in A’ali.
This pioneering initiative aims to drive comprehensive programmes that promote gender equality in the technology industry through multi-faceted programmes that align with national strategies led by the Supreme Council for Women in partnership with the private sector. Operated by Bahrain Fintech Bay and supported by Tamkeen, I4B is designed to equip women with the tools, resources, and networking needed to succeed in the digital economy.
As stated by Group CEO Dalal Al Qais: “We have launched purpose-driven initiatives such as the Riyadat scheme to empower female business owners, zero-interest loans to boost food security and sustainable development in the agriculture and fisheries sectors, and the SME fund to expand capital access for high-impact ventures. In collaboration with Tamkeen, we have also introduced co-financing programmes that extend tailored support to MSMEs across various sectors.”
Believing in Bahraini women’s ability to fuel the Kingdom’s economic growth and create a transformational impact, the Riyadat Scheme is helping these entrepreneurs scale their businesses with access to favourable Sharia-compliant financing and dedicated advisory services. The scheme supports both new and existing enterprises through two financing tracks, delivered in collaboration with Tamkeen’s “Start Your Business” and “Business Growth” programmes.
Innovation and technology in banking
BDB has continued to lead by example in digital transformation, consistently embracing innovative technologies to enhance operational efficiency, customer experience, and service accessibility. Central to this transformation is tijara, BDB’s flagship digital banking platform. Built to meet the evolving needs of MSMEs, tijara provides real-time account information, transaction details, statement downloads, fund transfers within BDB and to external accounts, as well as international transfers via SWIFT, all in a secure and user-friendly environment.
BDB customers can use the Tijara platform to view account balances and account and transaction details, download statements, generate account reports, and transfer funds to their own accounts and other BDB (and non-BDB) accounts. Funds can also be transferred to international bank accounts through SWIFT. With advanced security features such as two-factor authentication and password encryption, the platform offers peace of mind while delivering convenience at scale.
In October 2020, BDB took a major step forward by selecting the TCS BaNCS Global Banking Platform, developed by Tata Consultancy Services (TCS), a leading global IT services, consulting, and business solutions organisation, to modernise its core banking infrastructure. The decision was driven by a strategic goal to deliver personalised digital customer experiences and align with Bahrain’s national vision of cloud-based transformation.
Hosted on Amazon Web Services (AWS), the TCS BaNCS platform integrates cutting-edge technologies like APIs, artificial intelligence, and data analytics to support the rapid rollout of new products and services. This cloud-native solution not only enhances scalability, security and cost efficiency, but also enables BDB to tap into TCS’s fintech ecosystem to accelerate innovation and create contextual, value-driven interactions with customers.
In a further demonstration of its digital-first strategy, BDB entered a strategic partnership in February 2025 with Mazad, a leading online auction platform. This collaboration enables the bank to conduct asset sales through live bidding, creating a more transparent, efficient and competitive process. By leveraging Mazad’s advanced digital capabilities, BDB is building a more accessible, fairer, and reliable bidding ecosystem for investors.
Shining at the CSR front
In June 2024, BDB won the “Excellence in Sustainable Environmental Development” Award at the GCC International CSR Awards. This achievement reiterated the bank’s ongoing commitment to environmental sustainability, its efforts to promote green initiatives, and its continued support for agricultural projects, including the Farmers Market in Hoorat A’ali, which serves as a key platform for local farmers to showcase their products and boost sales.
As part of its efforts to support food security and agricultural production in the Kingdom, BDB offers zero-interest financing solutions to farmers and fishers in partnership with the Ministry of Finance and National Economy. The product enables farmers to expand their businesses and allows local fishermen to purchase equipment with ease.
The bank has also shown longstanding support for the National Initiative for Agricultural Development (NIAD)’s Forever Green campaign over the past four years by contributing to tree planting efforts across various areas within the Kingdom. BDB’s diverse initiatives highlight its active role in contributing to the United Nations’ Sustainable Development Goals (SDGs), promoting economic growth, gender equality, supporting MSMEs, and enhancing education in Bahrain.
BDB’s support for individuals in the fishery and agriculture sectors includes offering interest-free loans for production development. As of December 2023, 2,729 individuals had received loans amounting to BD 22.7 million, illustrating the bank’s commitment to promoting sustainable agriculture.
In addition, BDB’s provision of education loans aligns with SDG 4 (Quality Education). The bank also supported 1,160 individuals with loans totalling BD 20.4 million as of December 2023, reflecting its dedication to enhancing educational opportunities and human development.
Partnerships, collaborations, and a promising future
BDB has continued to build strong partnerships with financial institutions, government agencies, and international bodies to enhance its service offerings and contribute meaningfully to Bahrain’s long-term economic vision.
Among the most impactful of these is BDB’s collaboration with the Labour Fund Tamkeen, which subsidises over 50% of the interest on eligible loans, significantly improving access to capital for MSMEs. The bank has also played a leading role in empowering female entrepreneurs through its partnership with the Supreme Council for Women, offering tailored business loans for women-led ventures.
BDB’s partnership with the Bahrain Tender Board is easing SME access to government tenders. Meanwhile, its collaboration with Export Bahrain empowers Bahraini SMEs to scale internationally by providing export support and financing mechanisms.
In November 2024, BDB signed a strategic agreement with Lumofy, an AI-powered talent management platform, to enhance employee upskilling practices at the bank. This collaboration marks a significant step forward in BDB’s ongoing efforts to build internal capabilities that support long-term operational excellence and sustained success.
BDB’s strategic goals for the future centre around expansion, new product introductions, and other priorities aligned with Bahrain’s broader economic vision. Plans for the near to medium term include broadening the spectrum of financial products and developing innovative digital platforms to simplify banking services. The bank is also improving its advisory and funding programmes to strengthen Bahrain’s entrepreneurial landscape. At the same time, it continues to invest in state-of-the-art fintech innovations to improve operational efficiency and extend its competitive edge in an evolving market landscape.
As it looks to the future, BDB will continually seek new alliances with both local and international stakeholders to drive collaborative efforts in innovation, sustainability, and inclusive economic progress across the Kingdom.