Around 1,000 small and medium enterprises (SMEs) in Bahrain will benefit from a support fund specifically tailored for them.

The fund has been created by the government agency Tamkeen.

Developed by a joint committee formed by Tamkeen, the Bahrain Chamber of Commerce and Industry and the General Federation of Workers’ Trade Unions in Bahrain, it follows a study conducted by KPMG at the end of 2009.

Under the scheme, SMEs owned fully or at least 51 per cent by Bahrainis will receive up to BD10,000 ($26,515) as assistance to pay for utilities, premises leasing, social security, vehicles and machinery rental, insurance for buildings, equipment and vehicles and payroll support for Bahraini staff.

“The project will provide support over a two-year period to those enterprises evaluated as being at risk and also follow-up for two years after the support is granted to ensure that the right use is being made of the fund,” a Tamkeen statement said.

Tamkeen describes itself as a semi-autonomous yet independent authority which formulates strategic and operational plans to enhance the overall prosperity of Bahrain by investing in Bahraini employability, job creation and social support. Tamkeen is funded by the fees collected by the Labour Market Regulatory Authority.

The scheme was announced by Tamkeen’s chairman Dr Nezar Al Baharna at Tamkeen’s premises at Beit Al Tijjar.

“The SMEs support programme is Tamkeen’s pro-active response to the challenges faced by SMEs in relation to general economic developments,” said Al Baharna, “We have always built programmes for SMEs in the belief that they are the engines of economic development and innovation. This particular programme is developed to empower SMEs and help them to sustain themselves in a very competitive market.”

He added: “By making funds available for basic business requirements, we believe that we are empowering these SMEs and nurturing them for better times ahead.”