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Bahrain: Key deal to develop corporate credit rating system

Bahrain - The Industry and Commerce Ministry and Benefit have signed a memorandum of understanding (MoU) to develop a corporate credit rating system.

The aim is to provide accurate and transparent credit ratings for businesses in Bahrain, facilitating faster access to finance for small and medium enterprises (SMEs) and boosting investment.

Industry and Commerce Minister Abdulla bin Adel Fakhro, who is also chairman of the SMEs Development Council, reaffirmed the government’s support for the sector, in line with directives from His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.

He highlighted ongoing initiatives designed to ease access to finance and accelerate SME growth, recognising their crucial role in national economic development.

Mr Fakhro described the MoU as a key step in strengthening the financial infrastructure for businesses in Bahrain. “This collaboration reflects our commitment to supporting SMEs by providing innovative solutions that facilitate their access to finance and enhance their ability to grow and compete,” he said.

Benefit chief executive Abdulwahid Janahi said the company was delighted to partner with the ministry. “This MoU is an important extension of the services provided by the Bahrain Credit Information Centre, operated by Benefit, particularly for the business sector,” he said. He added that the collaboration would boost development of both the commercial sector and the wider economy.

The project aims to strengthen the commercial sector by developing and implementing an innovative commercial credit rating model. This, Mr Janahi explained, will improve financing opportunities for SMEs and enhance the ability of financial institutions to accurately assess credit risks.

The commercial credit rating system is designed to ease business access to finance, expedite credit application approvals, and improve financing terms. By analysing the financial behaviour of businesses, the system will provide financiers with a valuable tool for decision-making. The initiative is also expected to support digital transformation in the finance sector, with a focus on SME support.