With this launch, INFINIOS becomes the first issuer in Bahrain, apart from being one of the first fintechs in the Middle East, to enable Mastercard settlement using stablecoins, unlocking faster, more efficient settlement capabilities for modern commerce.

The integration also forms part of Mastercard’s broader regional strategy to bring regulated, real‑world blockchain use cases into the mainstream payments ecosystem, bridging traditional finance with tokenized money. INFINIOS was selected as an early live partner following rigorous regulatory, operational, and technical readiness requirements.

“By going live with Mastercard on stablecoin settlement, INFINIOS is helping define the future of how money moves—faster, more transparent, and designed for a digital‑first economy. Bahrain is once again proving it can lead in payment innovation and financial ecosystem transformation,” said Sherif Abdelsalam, CEO of INFINIOS.

“In addition, the collaboration establishes the foundation for 24/7 settlement capabilities that will be introduced progressively over time, addressing long‑standing inefficiencies in cross‑border and institutional payments while maintaining full regulatory compliance,” the senior official remarked further.

Mastercard announced INFINIOS as one of its initial Middle East partners for stablecoin settlement as part of its blockchain and digital asset expansion strategy, reinforcing Bahrain’s role as a forward‑looking fintech hub.

“At Mastercard, we are bringing our global network of partners together to shape the future of stablecoin adoption and power a new wave of digitalization in financial services. Our collaboration with INFINIOS will advance the move toward trusted, enterprise-grade digital settlement rails across the Middle East,” said Saud Swar, country manager, Saudi Arabia, Bahrain, Jordan, and other Levant at Mastercard.

“With this go‑live, INFINIOS positions itself at the core of next‑generation payment infrastructure, enabling banks, fintechs, and enterprises to access Mastercard’s global network with the speed and programmability of blockchain‑based money,” he concluded.

INFINIOS has been expanding its operational footprint into the Middle East, in terms of making stablecoin settlement the new normal in the region.

INFINIOS, in June, entered into a strategic agreement with Circle Internet Financial, a subsidiary of Circle Internet Group, one of the world’s leading financial platform companies. Through the strategic arrangement, INFINIOS will be able to deliver faster, more secure, and more globally interoperable digital payment and treasury solutions for businesses and financial institutions in the Gulf region. The company will integrate with Circle’s financial infrastructure, including USDC, EURC, and API-enabled onchain payment capabilities for payouts and treasury operations.

“Through its integration with Circle’s infrastructure, INFINIOS aims to support institutional and enterprise use cases, including cross-border payments, treasury and liquidity management, merchant settlement, platform payouts, tokenized financial services, and embedded finance. The collaboration also reflects a shared focus on compliance, transparency, and regulatory alignment, including KYC, AML/CFT, and data protection standards,” the Bahraini company said in June, while announcing the agreement.

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As per the rating agency’s estimates, the industry was worth about USD 94 billion by the end of the first half of 2026, with Islamic banking accounting for 75% of that total and sukuk outstanding making up a further 22%. Sharia-compliant collective investment undertakings (CIUs) and takaful companies comprised the remainder.

Islamic banks have been gaining ground on their conventional counterparts, now holding around 42% of domestic banking assets, according to Fitch. Growth is being underpinned by strong public demand, a supportive regulatory environment, and broadly stable operating conditions.

“Sukuk’s share of Bahrain’s debt capital market climbed to 37% by the end of the first half of 2026, up from 35% a year earlier. Outstanding sukuk surpassed $20 billion in the period, a 16% annual rise that outstripped growth in conventional bonds. “We forecast government debt, including sukuk, to continue to grow. The net asset value of Bahrain’s sharia-compliant CIUs reached USD 2.5 billion by the end of the first quarter of 2026, up 24.5% year on year,” Fitch said.

The forecast comes even as the broader sukuk market has had a rougher year. Fitch noted separately that global sukuk issuance fell 36% year on year in the first half of 2026 across the GCC, Malaysia, Indonesia, Turkiye and Pakistan, to USD 125 billion, as volatility and rising yields tied to the Iran war weighed on activity. Global sukuk outstanding nonetheless grew 11% to USD 1.1 trillion, with the trajectory for the rest of the year hinging on whether the ceasefire holds.

In Bahrain specifically, Fitch said the Kingdom’s banking system faces limited immediate credit risk from the conflict. The Central Bank of Bahrain has already rolled out a loan deferral and liquidity support program covering all banks in the country.

The sector is also undergoing consolidation, with authorities encouraging mergers to address a market that remains highly concentrated. Fitch said this presents a challenge for both Islamic and conventional lenders, many of which are competing for a limited pool of deposits and lending opportunities in a small domestic economy.

Bahrain continues to host key Islamic finance standard-setting bodies, including the Accounting and Auditing Organization for Islamic Financial Institutions and the International Islamic Financial Market, reinforcing its role as a regional hub even as growth increasingly comes from sukuk issuance rather than balance-sheet expansion alone.

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The bank said the review applies only to its wealth and retail banking operations in the Kingdom and will not affect its Corporate and Investment Banking (CIB) business, which will continue to operate in the Gulf country “as a super-connector through our international network, cross-border capabilities, and sector expertise.”

The move aligns with Standard Chartered’s broader strategic emphasis on cross-border and affluent clients, a priority reaffirmed during its full-year 2025 results presentation. Any potential transaction remains subject to regulatory approvals, and the bank has not said whether it is already entertaining offers.

Bongiwe Gangeni, Standard Chartered’s head of wealth and retail banking for Europe, the Middle East, and Africa, said the bank would continue investing in the region in response to “strong client demand and long-term opportunity across the Middle East, with deep connections across the region and its global corridors.”

She said the transition is expected to be phased over 18 to 24 months, subject to regulatory approvals.

“During this period, our business will continue to operate on a business-as-usual basis, and we will work closely with colleagues, clients, regulators, and other stakeholders to ensure an orderly transition and minimal disruption,” the senior official added further.

Standard Chartered joins a string of global lenders scaling back retail operations in Bahrain, the smallest Gulf economy, which has struggled to match the growth pace of larger regional peers such as Saudi Arabia and the UAE. HSBC sold its Bahrain retail banking operation to Bank of Bahrain and Kuwait in 2025 while retaining its corporate and private banking units, and Citigroup exited its Bahrain retail business, completing the sale of its consumer banking franchise to Ahli United Bank in December 2022.

Despite the retreat from retail banking in Bahrain, Standard Chartered remains committed to the wider Middle East, where the region accounts for roughly 10% to 15% of the bank’s global earnings. Group chief executive Bill Winters told The National newspaper in October that the bank’s private banking assets under management had doubled in the Middle East and could grow several times over in the years ahead.

The group said it will continue serving clients in the region through its CIB franchise, affluent wealth management capabilities, and Islamic banking offering as it concentrates resources on businesses where it believes it can deliver the greatest long-term value.

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According to the latest indicators released by the Bahrain Survey and Land Registration Bureau (SLRB), the total value of property transactions from the beginning of 2026 through June 11 reached approximately BD597.1 million, validating the sector’s pivotal role in supporting economic growth and driving activities linked to urban development and investment. The number of completed transactions stood at 12,798.

As per the data, April recorded the highest number of real estate transactions for the Gulf nation in 2026, with 2,982 deals completed. While the number of transactions reached 2,364 in May, a minor reduction from the April tally, it still underscored the steady level of activity across the residential, commercial, and investment segments of the market.

Meanwhile, real estate transactions during the first 11 days of June reached BD51.8 million through 1,034 transactions, indicating that market activity remains robust.

“This positive performance comes amid the comprehensive development vision of His Majesty King Hamad and the government strategies led by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, which focus on diversifying the national economy, strengthening the investment environment and promoting sustainable growth,” SLRB said.

“The sector’s attractiveness has also been reinforced by Bahrain’s advanced legislative and regulatory framework, including the expansion of electronic services, streamlining registration and documentation procedures and enhancing transparency. These efforts have been complemented by the roles played by SLRB and the Real Estate Regulatory Authority in regulating the market and safeguarding the rights of stakeholders,” the authority noted further.

The latest indicators confirm that the real estate sector remains one of the most dynamic pillars of Bahrain’s economy, benefiting from economic stability, modern legislation and ongoing development projects.

In 2025 too, the Gulf country’s real estate market recorded strong growth in transaction activity, despite a decline in prices and rents across several segments, which, in the opinion of the leading real estate industry expert CBRE, highlighted an uneven performance pattern across the sector.

A total of 29,777 real estate deals were recorded for the year, up 19.8% from 2024. The total transaction value, on the other hand, jumped 51.6% to USD 4.2 billion, with both figures marking their highest levels in a decade.

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The price tightening reflects the willingness among investors to accept lower yields in exchange for exposure to Bahrain’s credit.

“The transaction comprises a 10-year maturity, with settlement scheduled for June 10, 2026, and a maturity date of June 10, 2036. The notes carry a semi-annual coupon and will be listed on the London Stock Exchange’s main market,” reported Zawya.

Joint lead managers and bookrunners for Bahrain’s issuance included Bank ABC, Citi, First Abu Dhabi Bank, National Bank of Bahrain, JP Morgan, and Standard Chartered Bank.

There has been a steady reopening of emerging market issuance windows, with borrower activity picking up as investors seek yield opportunities in a higher-interest rate environment.

Talking about Bahraini bonds, the latter came under pressure after the beginning of the Iran war but recovered by mid-April after the UAE provided financial support. The central banks of the two neighbouring Gulf countries signed a currency swap agreement of AED20 billion, or BHD2 billion (USD 5.5 billion).

The Central Bank of Bahrain has already been in the warfighting mode to save its domestic economy from the fallouts of the Iran war and the disruptions at the Strait of Hormuz. In April, it offered a package of loan deferrals and credit card payments, along with other liquidity support for the individuals and businesses.

Banks have been given flexibility on how they classify affected loans, easing pressure on balance sheets at a time of rising uncertainty. The liquidity support, worth BHD7 billion (USD 18.6 billion), has also enabled the central bank to offer unlimited dinar funding to retail banks against eligible collateral for six months.

The apex financial institution’s move of extending its repo facility to three months, apart from cutting reserve requirements from 5% to 3.5%, has freed up additional capital to support lending.

The minimum liquidity coverage ratio and net stable funding ratio have both been reduced from 100% to 80% in order to inject more cash into the banking system and support economic activity.

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GCC countries saw USD 55.04 billion of primary issuances through 95 deals in the first quarter, up 5.64% from the first quarter of 2019. The region’s debt market, particularly in Saudi Arabia, has expanded in recent years as economic diversification efforts have increased investor demand for fixed-income instruments.

“As for issuance preferences, the first quarter of 2026 saw an increased appetite for conventional issuances in the GCC, representing 65.2% of total issuances. This aligns with issuance preferences from the first quarter of 2025, when more conventional bonds were issued,” said Markaz.

The UAE placed second with issuances of USD 13.57 billion in 36 offerings, followed by Qatar with USD 4.2 billion, Bahrain with USD 2.1 billion, Kuwait with USD 1.98 billion, and Oman with USD 650 million.

A December report by Kamco Invest indicated that GCC debt maturities are expected to remain high in the coming five years, with the UAE and Saudi Arabia having the highest maturities at USD 171.8 billion and USD 174.5 billion, respectively, between 2026 and 2030.

Issuance by corporate issuers increased 5.7% year-on-year to USD 34.58 billion, or 62.8% of total issuance, while sovereign issuance rose 5.5% to USD 20.46 billion, or 37.2% of the total. Government-related corporate entities saw a sharp decline in the first quarter, issuing USD 2.65 billion, which is 60.9% less than a year earlier.

The financial sector followed with USD 19.45 billion from 64 issuances, representing 35.3% of the market.

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The Iranian Revolutionary Guard announced on March 5 that the choke-point would be under their control for the duration of the war. This makes any voyage through the narrow pass extremely risky.

IRGC Navy official Mohammad Akbarzadeh claimed, “Currently, the Strait of Hormuz is under the complete control of the Islamic Republic’s Navy,” warning ships risk missile or drone damage.

Major international container liners like Maersk, MSC, and CMA CGM are all halting operations effective immediately and navigating their vessels to safe contingency ports.

Among them, Danish shipping titan Maersk also halted cargo bookings from most Gulf markets after a war-driven risk assessment. The company confirmed that there shall be no more bookings accepted from Iraq, Qatar, UAE, Kuwait, Bahrain, and certain parts of Saudi Arabia and Oman “until further notice.” Maersk assured that there will be humanitarian exceptions that apply to food, medicine, and essential goods.

However, operations to Jordan and Lebanon will remain unaffected, and there are two Maersk vessels in the Gulf currently.

The 33-kilometre-long strait controls roughly 20% of all global crude oil shipments, as well as noteworthy volumes of liquefied natural gas.

Khaled Ramadan, a Cairo-based economist, said that oil and gas transit through the strait would fall by 80% with escalating tensions. Consequently, worldwide prices for oil and goods are expected to spike.

Maersk is not the only company wary of Gulf waters. German carrier Hapag-Lloyd also suspended shipments to and from the upper Gulf. Hapag-Lloyd said: The suspension is “a necessary response to current security conditions and regulatory restrictions,” as “safety of its crews, vessels, and cargo remains its highest priority.”

China’s COSCO cancelled bookings to multiple Gulf ports. Mediterranean Shipping Co. also declared an end of voyage for all Gulf-bound cargo, is diverting vessels to the nearest safe port, and is imposing a surcharge of $800 per container.

France’s CMA CGM prioritised the safety of its crew and vessel, and APM Terminals Bahrain also used emergency measures to divert its vessels and sailors to Khalifa bin Salman Port.

Inflammatory remarks by Iranians like Brig. Gen. Sardar Ebrahim Jabbari, who said that the “Strait of Hormuz is closed,” while vowing to “burn any ship that tries to pass”, is of great concern to insurers.

The insurance markets are reassessing their insurance premiums. It’s going to be an expensive affair to insure all the transport ships passing through the strait under such perilous conditions. Some prominent London insurers are still willing to offer coverage, but at extremely sharp premiums that are rising daily.

Marsh McLennan, an insurance broker, met with US officials to remedy maritime trade woes amidst the deepening crisis. Without de-escalation, global supply chains and energy markets will be consumed by inflationary chaos.

However, US officials have promised respite and intervention. US President Donald Trump claimed that the US Development Finance Corporation (DFC) will provide political risk insurance at a very reasonable price, and added, “If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz.”

McLennan noted pre-conflict rates were 0.25%, now doubling as “insurers are cancelling pre-existing war risk policies and looking to renegotiate at higher prices.”

War-risk premiums could rise up to 50%, e.g., from $250,000 to $375,000 for a $100M vessel per voyage.

Experts say this could be part of Iran’s economic war. It doesn’t have to sink every ship that passes through the Strait of Hormuz. It just needs to make it unsafe enough to be uninsurable. Thereby driving up the costs of shipping and consequently the goods astronomically.

“Tanker traffic depends not just on whether ships can technically pass through Hormuz, but on whether operators can obtain war-risk coverage… Once coverage becomes uncertain or prohibitively expensive, trade slows faster than the formal status of the waterway changes. Insurance, in effect, becomes the market’s enforcement mechanism for geopolitical fear,” said Umud Shokri, energy strategist at Stimson Centre.

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With a total score of 63.80 out of 100, the Sultanate has been officially placed in the “Favourable Outlook” category, signalling its strength as a stable and attractive destination for international capital.

The score, which looks at 226 countries, compares a country’s ability to adapt and recover to its exposure to geopolitical, economic, and climate hazards. Oman’s performance is characterised by a strong resilience rating of 55.05. Its risk score is exceptionally low at 27.5.

Based on the data, the nation has one of the lowest rates of political instability, inflation, and currency volatility in the world. Although physical vulnerability to the climate is still the main obstacle, the Sultanate’s strong institutional framework offers a sizable cushion for long-term growth.

The paper identifies many important factors that support Oman’s stability. The country demonstrated a great ability to control public debt while preserving a stable social environment by achieving high scores of 0.78 for fiscal policy room and 0.75 for social advancement.

Additionally, a transparent and trustworthy environment for international corporate interests is highlighted by constant ratings of 0.58 for external accounts and investments, backed by a 0.55 rating for governance quality.

Oman is ranked higher than Bahrain and lower than the United Arab Emirates, Qatar, Saudi Arabia, and Kuwait in the GCC (Gulf Cooperation Council). Switzerland and Denmark topped the worldwide score, demonstrating how smaller, more adaptable nations are increasingly serving as the cornerstones of global resilience.

According to the report’s conclusion, in a more unstable global economy, countries most dedicated to fostering resilience via innovation and governance will continue to draw the best talent and investment.

Dr Christian H Kaelin, Chairman of Henley & Partners, told the Muscat Daily, “This index is a new, useful tool in understanding where true sovereign risks and resilience lie. For investors, companies and global citizens, it offers unprecedented clarity on where to place confidence and capital in the years ahead.”

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In a statement given to the Tadawul (Saudi Stock Exchange), the company announced that it has acquired gas-fired power generation assets with a capacity of 4.6 gigawatts, along with the water desalination assets with a capacity of 1.1 million cubic meters per day, related operations and maintenance companies from a subsidiary of the French-based entity.

“The acquisition follows an agreement signed between ACWA Power and Kahrabel FZE, a subsidiary of ENGIE, to acquire power and water assets in Kuwait and Bahrain for USD 693 million. The deal includes a 45% interest in both the Al-Ezzel and Al-Dur projects as well as a 30% holding in the Al-Hidd facility, all situated in Bahrain,” reported Arab News.

The arrangement also covers ENGIE’s interests in gas-fired power generation and water desalination assets in Bahrain. The Kuwait assets, which form part of the broader transaction perimeter, will be transferred following the completion of customary technical conditions. The Kuwait portfolio includes a 17.5% equity stake in Az Zour North IWPP (Independent Water and Power Plant/Project) as well as 50% ownership in Az Zour North Operations & Maintenance Co.

Marco Arcelli, ACWA Power’s CEO, commented, “The completion of the Bahrain-related phase of this larger acquisition marks a pivotal milestone for ACWA Power. It reinforces our position as a global leader in water desalination, significantly extends our footprint in the regional power generation market, and consolidates our presence in the attractive and dynamic Bahrain market, with Kuwait to follow. These fully operational assets, underpinned by secured offtake contracts, strengthen our financial position and enable us to continue providing safe and reliable power and water to local communities and industries across the region.”

“As for Kuwait assets, a few customary technical conditions are remaining, following which the transaction will be finalised,” the company added.

In December 2025, ACWA Power signed an agreement with Bahrain-based Bapco Energies to develop a solar power plant with a large-scale battery energy storage system in the Eastern Province of Saudi Arabia. Under the deal, both parties will work together to jointly develop a solar power plant with a projected generation capacity of up to 2.8GW over various phases. These acquisitions are seen as cornerstones of ACWA Power, fulfilling its broader objective of reaching USD 250 billion in assets under management by 2030.

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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.

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