New Business Classification System Strengthens SME Sector

The Bahrain Chamber of Commerce and Industry has welcomed the issuance of Ministerial Decision No. (23) of 2026 on the classification of micro, small and medium-sized enterprises (MSMEs), describing it as a significant step toward enhancing Bahrain’s business ecosystem and enabling enterprises to grow and expand within a clearer and more adaptive regulatory framework.

The Chamber’s Chairman, H.E. Nabeel Khaled Kanoo, praised the decision issued by the Minister of Industry and Commerce, H.E Abdulla bin Adel Fakhro, noting that the updated classification system represents an important development in strengthening the Kingdom’s economic framework and improving the ability of national businesses to scale in line with evolving market conditions.

Kanoo said that an updated enterprise classification will help businesses make more effective use of targeted support programmes and initiatives aimed at business development. It will also support the design of services tailored to different stages of company growth, ultimately improving productivity, expansion prospects, and economic contribution.

He added that the significance of the decision goes beyond categorising companies by size, stressing that it also facilitates smoother progression from one category to another as businesses grow. This, he said, encourages entrepreneurs and business owners to invest, innovate, and adopt long-term planning strategies, while strengthening the competitiveness of Bahraini companies and their ability to explore new growth opportunities.

Kanoo further explained that a clear classification framework builds greater confidence among enterprises when planning expansion or accessing support services. It also contributes to creating a more enabling environment for startups, family businesses, and SMEs, which he described as a key driver of economic activity.

He reaffirmed that supporting the growth and expansion of national enterprises is a cornerstone of sustainable development, adding that continuous improvement of the regulatory and legislative framework enhances the competitiveness of the national economy and the attractiveness of Bahrain’s investment environment.

The Chairman also commended the efforts of the Bahrain Chamber of Commerce and Industry and the Ministry of Industry and Commerce for continuously updating business-related legislation, stressing that such reforms empower the private sector to play a stronger role as a key partner in economic development and the achievement of Bahrain’s future objectives.