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ARTICLE · 26 AUGUST 2026

Bahrain Raises The SME Ceiling To BHD20 Million

The Sovereign Group
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Bahrain has significantly expanded its SME definition, increasing the medium enterprise threshold to 250 employees or BHD20 million in annual revenue. More businesses can now qualify for SME status, opening access to government support, preferential financing, procurement advantages and programmes designed to help companies grow and expand.

BahrainGovernment, Public Sector
Nabil Khoury
Nabil Khoury
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Bahrain has widened its official definition of micro, small and medium enterprises (MSMEs) for the first time since 2017. The measure was introduced by Ministerial Decision No. 23 of 2026, issued by the Minister of Industry and Commerce Abdulla bin Adel Fakhro and published in the Official Gazette on 11 June. It came into force the following day.

The effect is not cosmetic. The ceiling for a medium enterprise is now expanded to 250 employees or BHD20 million (USD53 million) in annual revenue, which means many companies that were previously classified as large enterprises now fall inside the SME definition and can gain access to the support programmes, financing and procurement preferences that attach to that status.

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