‘Tamkeen model boosting private sector, economy’

Manama : Bahrain’s commitment to economic diversification and youth empowerment efforts has delivered tangible results, said a top Bahraini financial expert. 

Tamkeen Chairman Shaikh Mohammed bin Essa Al Khalifa was speaking following an award ceremony held in Vienna on the occasion of the United Nation’s Industrial Development Organisation’s 50th anniversary Expo. 

The award was in recognition of His Majesty King Hamad bin Isa Al Khalifa’s global role in delivering economic empowerment for youth and women through the Bahrain Model for Economic Empowerment, which is now followed in 48 countries.

Citing Bahrain’s success in private sector development and promoting entrepreneurship, Shaikh Mohammed stressed this shows that with long term planning and determination sustainable development is achievable.

The Chairman also pointed out that the economic model was highly relevant, given the challenges faced by resource-focused economies in the region and around the world. 

Highlighting the effort of HM the King in this regard, Shaikh Mohammed explained that Tamkeen has launched over 200 initiatives facilitating access to finance for the private sector. 

Revealing further, he said Tamkeen has invested over 800 million Bahraini Dinars (US$2 billion) since its inception a decade ago. 

When it comes to youth empowerment, Tamkeen has assisted over 100,000 Bahrainis, with many of the beneficiaries being young people and women. Over 38,000 businesses had also received Tamkeen’s assistance, which represents more than 46pc of companies in Bahrain, he added. 

Explaining Tamkeen’s programmes, Shaikh Mohammed said the organisation through its programmes and partnerships with public and private organisations has reached 31 per cent of the country’s workforce, which means one in every three Bahrainis.

While agreeing that the current market condition is demanding more, he, however, pointed out that Bahrain’s long term economic strategy has been yielding positive results.

According to data from the Ministry of Industry and Commerce, as of 2016, SMEs’ contribution to Bahrain’s GDP is close to 28pc. Additionally, SMEs today form over 90pc of companies registered in Bahrain with a total committed capital of BD1.7bn (excluding individual companies). SMEs now employ well over 400,000 employees of which more than 50,000 are Bahraini.

In 2015, the non-oil private sector led economic growth in Bahrain, growing by an annual rate of 3.7pc. This follows a decade of solid growth in Bahrain’s non-oil private sector, which grew by an average rate of 6.4pc between 2005 and 2015.