Is it Time to Suspend Licenses in Oversupplied Industries?

By P Unnikrishnan

In Bahrain’s bustling economic landscape, it’s no secret that specific industries attract the lion’s share of investment, often to the detriment of diversity and innovation.

Stroll through Juffair,Adilya and Manama and you’ll likely encounter many hotels, apartment complexes, and healthcare facilities vying for attention.

While this may seem convenient at first glance, the reality is that oversaturation breeds intense competition, leading to price wars and potential compromises in quality.

Consider the case of travel agencies, money exchanges, cinemas, and even cold stores and supermarkets – sectors facing stiff competition from digital platforms and more prominent players.

The proliferation of options may seem beneficial, but in reality, it squeezes out smaller businesses and risks monopolisation, ultimately stifling diversity and innovation.

It’s time for Bahrain to consider a bold move: temporarily suspending licenses in oversupplied sectors.

By hitting the pause button on new entrants, existing businesses can breathe easier and focus on delivering quality services without constantly looking over their shoulders.

Moreover, this measure can prevent more giant corporations from tightening their grip on the market, ensuring a level playing field for all players.

Freezing licenses isn’t just about maintaining the status quo – it’s about fostering an environment where businesses are encouraged to innovate and excel.

With fewer competitors vying for attention, companies must invest in research, development, and quality control, ultimately raising the bar for everyone.

Let ’s aim higher. Rather than investing in saturated business models, let ’s direct our resources towards burgeoning industries with immense potential.

Areas like technology, renewable energy, and e-commerce are just a few examples that could unlock Bahrain’s economic prowess on the international platform.

By backing startups and fostering entrepreneurship, we can ignite a surge of creativity and progress, guiding us towards a prosperous future.

Entrepreneurs should explore investments in sectors capable of manufacturing consumer goods at accessible prices. Recently, I discovered locally-made hair dye and bathing soaps at a supermarket in Bahrain.

Let’s also promote and support the women entrepreneurs who have built their own brands, such as Noon by Noor, Sofia Alasfoor, Aisha Jewels, Amina Al-Abbasi, Annada, Rawan Maki Design House, Tru Active, Maya La Chocolaterie, and others.

Promoting such products supports the local economy and fosters growth and sustainability within our community.

Of course, such a transition will take time to happen. But by taking decisive action now, Bahrain can secure its place as a hub of innovation and creativity, all while ensuring a fair and competitive business environment for all.

It’s time to think outside the box and embrace change – to improve our economy and future.