Leading audit and advisory firm Grant Thornton Bahrain is urging local businesses to tap into the benefits of the Takamul programme.
This government initiative launched in August 2023 is a golden ticket for companies aiming to win government tenders, expand into Saudi Arabia, or become a supplier to Saudi Aramco, the oil and gas giant.
Takamul rewards companies that prioritise Bahrain’s economic growth.
It assesses a company’s “In-Country Value” (ICV) based on six key criteria. These include local spending on manufacturing, procurement of local products and services, investments within Bahrain, hiring and training of Bahraini citizens, job creation and export generation.
Companies that meet the specified criteria and percentages will earn a coveted Takamul certificate.
“The Takamul programme offers significant advantages for Bahraini businesses,” says Shashank Arya, director for tax advisory at Grant Thornton Bahrain.
“Firstly, companies with a Takamul certificate gain a competitive 10 per cent edge when bidding on government contracts within Bahrain.
Secondly, the recent agreement with Saudi Arabia allows Bahraini firms holding this certification to be treated on par with Saudi companies in government procurement and dealings with Aramco. This opens exciting new doors for participation in Saudi tenders and potentially becoming a supplier to Aramco.”
Industrial establishments with a valid licence from the Industry and Commerce Ministry can participate in the programme.
“According to Mr Arya, the process to obtain the In-Country Value Certificate involves three key steps: First, industrial establishments must partner with an approved audit firm in Bahrain to assess and verify their In-Country Value metrics. This firm will then issue an ICV audited report. Second, the establishment needs to complete the application form and submit it along with the audit report to the Industry and Commerce Ministry website. Finally, the ministry will review the application, verify all requirements are met, and upon approval, issue the In-Country Value Certificate.”
A preliminary study by the government found that BD76 million worth of industrial products imported into the country could be procured locally.
“This programme incentivises companies to invest locally,” explained Grant Thornton Bahrain managing partner Jassim Abdulaal.
“Those committed to Bahrain’s economic well-being gain a competitive edge. We are working very closely with the ministry for the development of this programme and to educate businesses to get the maximum benefit out of it.”
avinash@gdnmedia.bh
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