Parliamentarians call for review of capital rules to support small businesses

TDT | Manama

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Capital requirements blamed for squeezing out smaller businesses are facing scrutiny, with Parliament to debate a proposal on Tuesday urging the Ministry of Industry and Commerce to revisit the rules.

The motion, raised by MPs Jalila Alawi, Dr Hisham Al Ashiri, Mohsen Al Asbool, Hassan Bukhamas and Mohammed Janahi, calls for a review of the thresholds governing commercial activity. They argue that recent changes have made it harder for businesses to stay afloat.

The Financial and Economic Affairs Committee has backed the proposal. After reviewing the matter, the committee threw its support behind the MPs’ call, arguing that the public interest is best served by easing pressure on traders rather than increasing the burden.

‘This is about restoring balance and making sure businesses aren’t pushed out by thresholds that don’t fit the size of their work,’ said MP Jalila Alawi. ‘Instead of steadying the market, the changes have unsettled it. We’ve seen honest traders pushed to the edge, while loopholes have opened the door to exploitation. That’s why we’re calling for this rethink.’

The motion, if passed, would ask the ministry to re-examine and revise the capital requirement structure — one that allows businesses, especially the smaller ones, to keep trading without being boxed in by financial limits.