Limiting Tamkeen support to Bahraini-owned businesses: Govt says no; ‘Growth at risk’

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

Th e government has pushed back against a parliamentary draft law that sought to restrict support from the Labour Fund, Tamkeen, to projects, programmes, and advisory and financial services exclusively for companies and institutions entirely owned by Bahraini nationals.

This legislative proposal, which sought to bar entities with partial non-Bahraini ownership from receiving such support, encountered resistance from the government.

In its decision, the government presented several compelling arguments.

Foremost, the government contended that the draft law was at odds with the Labour Fund’s principal objective of stimulating private sector growth, which is recognised as a vital engine of economic advancement within the Kingdom.

To restrict support solely to entities entirely owned by Bahrainis would, according to the government, undermine this aim. Tamkeen, in its official response, reaffirmed its policy of supporting all private sector entities registered in Bahrain under the Commercial Companies Law, irrespective of ownership structure.

This support, Tamkeen explained, is intended to fortify the national economy and enhance the skills and capabilities of Bahrainis, thereby positioning them as preferred candidates for employment and generating new job opportunities for Bahraini workers.

Objectives

While proponents of the draft law argued that it would enhance the competitiveness of Bahraini institutions and companies partially owned by Bahraini nationals, the government ultimately decided to reassess the draft law, stating that its objectives had already been met through existing policies and initiatives.

The government also highlighted the potential negative impact on the national economy and the need to preserve the resources of the Labour Fund.

The Committee on Financial and Economic Affairs of the Council of Representatives contended that implementing the draft law would bear no financial consequences.

However, Tamkeen maintained that retaining the current provisions was essential for consistency with the national economy.

Approach

According to Tamkeen, this approach would benefit both citizens and the economy by supporting various sectors through new programmes and aligning with the government’s economic recovery plan.

In light of the government’s rejection of the draft law, Tamkeen will persist in providing support to all private sector institutions registered in Bahrain, irrespective of ownership structure.

This decision aligns with the government’s strategy of encouraging private sector development and attracting investment, ultimately contributing to the Kingdom’s economic growth and prosperity.