HM King Hamad approves tiered oil revenue deductions to secure long-term financial stability
TDT| Manama
Email: mail@newsofbahrain.com
His Majesty King Hamad bin Isa Al Khalifa yesterday ratified and issued Law (5) of 2025, amending Article (1) of Law (28) of 2006 to increase deductions from oil export revenues for the Future Generations Reserve (FGR).
The move follows approval by the Shura Council and the Council of Representatives and will take effect from the start of the next fiscal year.
As per the law approved by the legislative councils, deductions will now be tiered, reaching $5 per barrel when oil prices exceed $120.
The change aims to bolster Bahrain’s long-term financial stability by ensuring more resources are set aside for future generations.
Sovereign safeguard
Established in 2006, the Future Generations Reserve serves as a financial buffer designed to protect national wealth and support Bahrain’s economy.
The fund ensures that a portion of oil revenues is set aside exclusively for future needs, preventing over-reliance on immediate expenditures.
Its role has been particularly evident during global financial challenges, where reserve funds have allowed Bahrain to sustain key government projects without abrupt budgetary shortfalls.
By strengthening its structure through increased deductions, the Kingdom aims to enhance economic resilience and safeHM the King guard its financial future.
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