Tender Board has recently announced the signing of a Memorandum of Understanding (MoU) with Bahrain Development Bank (BDB) to support the purchase of bonds for Small and Medium-sized Enterprises (SMEs). This comes as part of the second package of initiatives to support SMEs and within the updated plan of the SMEs Development Board (SCB) for the years 2022-2026. Under this agreement, financial support will be provided to SMEs according to a specific mechanism to enable them to provide the necessary bonds.

The MOU was signed at the headquarters of Bahrain Tender Board in the Arcapita building in Bahrain Bay, by His Excellency Mr. Jamal Abdulaziz Al Alawi, Secretary General of the Tender Board, and Ms. Dalal Ahmed Al Ghais, CEO of Bahrain Development Bank Group. The signing ceremony was attended by the Director of Technical Evaluation at Tender Board, the Director of the SMEs Development Department at the Ministry of Industry and Commerce, the CEO of Strategic Planning and Transformation at BDB, and several stakeholders.

The memorandum stipulates that BDB will provide facilities to SMEs intending to participate in government tenders and auctions by reducing the cost of issuing the ‏initial bond and the performance bond, as these bonds are considered as part of the requirements of tenders and auctions.

This initiative aims to reduce the costs of issuing the required bonds for SMEs, ensuring the readiness of these establishments, and avoiding the rejection of their submitted bids in the event that the ‏Initial bond is not submitted with the required value. It also prevents winning companies from being unable to sign the contract for the required services if they fail to provide the required performance bond within the specified timeframe.

These facilities aim to encourage SMEs to participate in government tenders, which will contribute to increasing their participation rates in government tenders. Additionally, it will increase the percentage of contracts awarded to SMEs and the number of beneficiaries among them from government tenders, thereby promoting the growth of these establishments. Moreover, BDB will provide other financial facilities to SMEs that participate in tenders and auctions. These facilities will cover operational expenses, raw materials, and other financing needs, aiming to overcome any obstacles faced by the SMEs.

On this occasion, His Excellency Mr. Jamal Abdulaziz Al Alawi, Secretary General of Tender Board, stated that the signing of the MOU comes within the framework of the Board's belief and commitment to overcoming obstacles faced by the SMEs in coordination with partners. He emphasized the importance of coordination and collaboration among various concerned parties and institutions, commending the significance of continuous cooperation to enhance the joint work system and promote economic development and the national economy. Mr. Alawi extended his gratitude and appreciation to BDB on this initiative.

On the other hand, His Excellency indicated that the past year witnessed the awarding of 164 government tenders with a total value of BHD 57.2 million in favour of the SMEs. Out of these, 101 SMES benefited from these contracts. He explained that the percentage of awards represented 11% of the total value of awards during the same period, which falls under the Cabinet’s decision regarding SMEs.

HE Mr. Jamal Al Alawi affirmed that in the upcoming phase, the Board aspires to build upon the achievements made in supporting SMEs through optimal planning to achieve effective partnerships with partners in both the government and private sectors. This will be accomplished by launching various initiatives to support the SMEs. Additionally, the Board will continue to hold training workshops for contractors and suppliers, including SMEs. This will enhance the Board’s role in working alongside the SMEs to ensure the provision of comprehensive and compliant bids that meet the necessary conditions and requirements.

On her part, Ms. Dalal Ahmed Al Ghais, the CEO of Bahrain Development Bank Group, stated, “This MOU comes as part of BDB’s commitment to providing the necessary support for the SMEs and creating suitable opportunities for their development, which ultimately serves the national economy”. She further added. “We are keen to provide appropriate and attractive financing solutions through this project for entrepreneurs and owners of SMEs. These solutions will facilitate their participation in tenders and auctions to provide goods and services to government entities, and they will contribute to the growth and development of these enterprises.”

Ms. Al Ghais emphasized that BDB remains committed to continuously innovating and providing the best financing solutions and facilities for owners of these enterprises. The bank’s team possesses accumulated expertise that enables them to proactively offer services that align with their work nature and market requirements of this category. Moreover, she expresses her gratitude and appreciation to the Tender Board, represented by the Secretary General, as well as all those involved and working on this project, for their excellent contribution and dedicated efforts throughout the past period.