FUTURE generations would now have more money saved for any emergencies as higher oil revenues would be pumped into a key fund.
His Majesty King Hamad yesterday ratified amendments to the 2006 Future Generations Fund Set-up Law, after being approved by the Shura Council and Parliament, which would significantly boost funds for future generations.
The King ratified and promulgated Law No 16 of 2022 amending Article 1 of Law No 28 of 2006 regarding the reserve fund.
According to the amendments, $1 would be saved from every barrel of crude oil exported if the international prices are above $40 per barrel and does not exceed $80.
The amount saved would be doubled to $2 if the price surpasses $80 and does not exceed $120, and $3 when price exceeds $120.
The amount saved will go towards forming a special reserve called “Future Generations Reserve” for two consecutive fiscal years.
The deduction shall be carried out in accordance with the amounts shown in the accompanying table to this law in favour of the Future Generations Reserve after the period referred to in the previous paragraph has passed.
Under the amended law, it is not permissible to reduce or increase these amounts, or to dispose of the reserve funds for other than investment operations, except by law.
Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa had earlier told MPs in writing that the government plan would allow the fund to recover the $450 million taken to help combat Covid-19 in 2020 and significantly increase revenues.
Growth concerns weighed on oil markets yesterday, reversing recent gains in the commodity amid some concerns about global supply.
Brent crude was down by 4.87 per cent at $107.65 a barrel, while US crude was down by 4.91pc at $102.9 per barrel.
Prices were also impacted after the International Monetary Fund cut its growth forecasts for the global economy and warned of higher inflation.
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