Shura Council approves limits on Tamkeen aid for foreign companies amid concerns over overseas investments

TDT | Manama

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Foreign-owned companies may see their access to Tamkeen support reduced under a new law passed by the Shura Council. The legislation, approved yesterday, prioritises Bahraini-owned firms and citizens, aiming to strengthen local businesses.

However, it has sparked concerns that it might discourage much-needed foreign investment in the kingdom. Jamal Fakhro, the Shura Council’s First Deputy Chairman, warned against creating unnecessary hurdles for foreign firms.

“Bahrain is actively working to attract overseas investment, and the exceptions provided in this law must make things easier for foreign companies, not more difficult,” he said.

Economic value

Fakhro also questioned how Tamkeen measures the economic value of foreign-owned businesses. “What standards does Tamkeen use to assess a company’s investment size or its contribution to Bahrain’s economy? These measures need to be clear and consistent,” he added.

Dr Jameela Salman, Chairwoman of the Services Committee, shared figures on Bahrain’s business environment. “There are 86,935 commercial registrations in Bahrain, with 78.6 per cent fully or partly owned by Bahrainis and 21.4 per cent entirely foreign-owned,” she explained.

Career growth

Between November 2023 and September 2024, 12,017 Bahrainis secured jobs through Tamkeen’s programmes, 20,032 benefited from career growth schemes, and 7,090 businesses received support. “This law will improve opportunities for Bahraini workers, making them the natural choice for employers and strengthening the local economy,” Salman added.

HE Hamad Al Maliki, Minister of Cabinet Affairs, emphasised the cooperation between the government and legislators in drafting the law. He noted that Tamkeen’s initiatives have already delivered results, including helping 14,319 Bahrainis enter the workforce and assisting 22,545 with career progression.

Programmes

Additionally, 8,090 businesses in the private sector have benefited from Tamkeen’s programmes. “We have extended wage support to five years to ensure Bahrainis stay competitive in the labour market while making Bahrain an attractive destination for investors,” he said.

Khalid Al Maskati, a Shura Council member, noted how the law would push foreign companies to make a stronger contribution to the local economy. “Tamkeen’s approach encourages businesses to deliver meaningful benefits to Bahrainis. By assessing factors like financial health, trade activity, and reputation, they ensure companies provide real value to the workforce,” he remarked.

Public funds

Adel Al Asoumi stressed the importance of monitoring how public funds are used. “This law reinforces Tamkeen’s role in tackling misuse of resources.

Regular inspections to root out fake jobs and wage manipulation are essential. Stronger enforcement will protect Bahrainis and the kingdom’s resources,” he said.

The law refines Tamkeen’s priorities, directing resources toward training, advice, and financial aid for Bahraini-led businesses. Foreign firms, while not excluded, must show a clear and measurable contribution to Bahrain’s economy to qualify for support.

A report from the Shura Council recognised that foreign-owned businesses already play a role by paying into the Labour Fund, employing Bahrainis, and providing training opportunities.

Excluding them entirely, it warned, could undermine Bahrain’s broader ambitions. Maha Mufeez, CEO of Tamkeen, clarified how support is distributed, emphasising that it depends on several factors. “Support differs for Bahrainis, whether they work for a Bahraini or foreign-owned company.

We consider the number of Bahrainis employed, the type of jobs offered, and the size of the investment,” she explained.

Economic contributions

She also stressed the importance of evaluating economic contributions, noting that “the average wages paid to Bahrainis are a key factor in determining a company’s impact on the economy.

” Outlining Tamkeen’s broader approach, Mufeez said, “We evaluate elements such as innovation, investment size, and the creation of well-paying, meaningful jobs. These considerations shape the level of support provided, ensuring that resources are used effectively.”

Tamkeen’s objectives remain consistent: improving job prospects for Bahrainis and ensuring the private sector remains a driver of growth. The law leaves finer details to administrative processes, allowing flexibility to adapt to future challenges.

Investment

Tamkeen described its support as an investment in Bahrain’s future, tied directly to the quality of jobs created and the wider benefits delivered to the economy. This law marks a shift in Bahrain’s approach to economic support, favouring Bahraini businesses while ensuring foreign firms contribute more effectively.

Whether it strikes the right balance between local priorities and international interests remains to be seen, but it reflects a bold move to rethink how resources are distributed.