Tamkeen funding to favour Bahraini companies in new updated support plan

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: mail@newsobahrain.com

Tamkeen funding may soon tip the balance in favour of Bahraini-owned firms, as Parliament rethinks who should benefit from the Kingdom’s main support programme — a shift that could impact the market and change business priorities at home.

During its weekly meeting tomorrow, the Council of Representatives is scheduled to hammer out an updated plan, which tilts Tamkeen’s resources toward Bahraini-led businesses, offering help for projects, training, and financial support.

Unlike the initial plan, which would have blocked foreign-owned firms entirely, this new approach allows some access for them, aiming to boost local companies while keeping foreign investors in the loop.

The government, after calling for a rethink of the first plan, pointed out that Tamkeen’s support already fits with its intended aims.

Concerns

It voiced concerns that fully blocking foreign firms — many of which pay into the labour market — might put off overseas investment and unfairly limit aid to enterprises that matter to Bahrain’s economy.

Tamkeen itself stays focused on backing all private companies registered in Bahrain, no matter who owns them, as part of a broader drive to strengthen the nation’s economy.

This open-handed approach backs Bahrain’s Vision 2030, which looks to build a workforce that can hold its own.

Support

After going over the committee’s new plan, Tamkeen, for the first time, voiced its support for this balanced move.

By putting Bahraini-owned companies first while still giving limited help to foreign-owned businesses, Tamkeen sees this version as one that will support local trade without turning away key outside investment.

As of October 2023, Bahrain had 75,931 active business licences for firms partly or fully owned by non-Bahrainis, showing the strong presence of foreign investment in the nation’s economy.

Between 2018 and 2023, only 3% of Tamkeen’s funds went to fully foreign-owned firms, with the bulk going to Bahraini-owned businesses.

Backing

In the past five years, Tamkeen’s backing has helped around 7,000 Bahrainis working in foreign-owned firms, where pay is about 30% higher than in local companies.

One example is Tamkeen’s backing of Citi Bank’s tech hub, which led to 1,000 programming roles for Bahrainis with competitive pay — a clear result of Tamkeen’s push to boost work chances and grow skills among locals.

By focusing support on Bahraini firms while extending some help to foreign companies, Tamkeen’s plan is set to push Bahrain’s economic aims forward while keeping foreign investment flowing into the local market.