Manama: The Ministry of Industry and Commerce and BENEFIT have announced the signing of a Memorandum of Understanding (MoU) to develop a corporate credit rating system. This initiative aims to provide accurate and transparent credit ratings to reflect the financial position of enterprises in Bahrain, facilitating and accelerating SMEs’ access to necessary financing for investment expansion.
According to Bahrain News Agency, Abdulla bin Adel Fakhro, Minister of Industry and Commerce and Chairman of the SMEs’ Development Council, emphasized the government’s support for this sector. Under the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, the government has empowered SMEs through innovative initiatives that enhance access to finance, crucial for accelerating growth and contributing to the national economy.
The minister highlighted that the MoU with BENEFIT marks a significant step in bolstering the financial infrastructure of commercial enterprises in Bahrain. This collaboration demonstrates a commitment to supporting SMEs by providing solutions that ease access to finance, thereby enhancing their growth and competitiveness in the market.
BENEFIT CEO Abdulwahid Janahi expressed satisfaction with the MoU, noting its role as an extension of the services provided by the Bahrain Credit Information Center. The agreement aims to foster mutual knowledge development between both parties, which will promote growth in the commercial sector and support the national economy.
The project is geared towards strengthening Bahrain’s commercial sector by developing and implementing an innovative model for evaluating commercial credit ratings. This model is expected to improve financing opportunities for SMEs and enhance financial institutions’ capabilities in accurately assessing credit risks.
The commercial credit rating system serves as a crucial tool for businesses, facilitating easier access to financing, expediting credit application approvals, and improving financing conditions. It will analyze the financial behavior of enterprises, providing financiers with a tool to streamline decision-making processes. This cooperation is anticipated to support the digital transformation in the finance sector, with a particular focus on aiding small and medium enterprises.