More than 11,400 citizens benefit from the Unemployment Insurance Fund, the Shura Council heard yesterday.
The fund generated a surplus of nearly BD54.4 million in 2023 as contributions exceeded benefit payouts.
The Council unanimously approved the audited financial statements of the fund for the fiscal year ending December 31, 2023, following a review by the financial and economic affairs committee and endorsement by the board of the Social Insurance Organisation (SIO).
Committee chairman Khalid Al Maskati revealed that, according to figures issued in October 2025, the fund supports 11,452 beneficiaries.
“About 3,479 beneficiaries (30 per cent) received unemployment benefits for periods of up to one year,” Mr Al Maskati said. “Meanwhile, 6,258 beneficiaries (55pc) remained unemployed for between one and five years, and 1,715 (15pc) experienced unemployment exceeding five years.”
“These figures underline the fund’s critical role as a social safety net for Bahraini citizens,” he added.
Committee rapporteur Dr Abdulaziz Abul said the report was being presented to the legislative authority for the first time, a step he said would enhance oversight and transparency.
He noted that nearly two decades after the fund’s establishment, it has continued to meet its core objectives of providing social protection, making it timely to reassess its operational mechanisms and explore ways to expand its scope while preserving financial sustainability.
The committee confirmed that the fund remains in a strong financial position, with subscription revenues exceeding benefits paid. The surplus rose from BD51.3m in 2022 to BD54.4m in 2023, reflecting stable inflows and disciplined expenditure.
The committee also made several recommendations aimed at improving financial reporting and governance. These included adopting international financial reporting standards (IFRS) by classifying assets into current and non-current categories, and mandating the inclusion of a comprehensive income statement, which was missing from the 2023 accounts.
According to the audited data, the fund’s total assets stood at BD614.9m at the end of 2023 – up 2.3pc year-on-year. However, net assets declined to BD463m, largely due to a one-off allocation of BD200m under Decree-Law No 20 of 2023 to finance Bahraini workforce integration programmes. Only BD67.67m of that amount was transferred during 2023, with the remainder recorded as ‘other liabilities’.
Shura Council first vice-chairman Jamal Fakhro raised concerns about the fund’s investment performance, describing returns as ‘very low’.
“We are talking about average investments of around BD550m in 2023, yet returns were only about BD4m, roughly 4pc,” he said. “According to actuarial experts, returns should be closer to 6pc to be considered healthy.”
Mr Fakhro also questioned whether the current 1pc contribution rate from employees, employers and the government remains justified, given that financial surpluses have reached BD460m, and would have exceeded BD600m had the BD200m not been withdrawn.
“Are we really in need of accumulating such large surpluses while continuing to impose the same contribution burden on individuals, companies and the government?” he asked.
SIO chief executive Sahar Al Mannai, who attended the session, took note of the observations.
Shura Council Chairman Ali Saleh Al Saleh urged the SIO to carefully consider the recommendations to further enhance the fund’s performance and transparency.
The Council approved the report, reaffirming the importance of the Unemployment Insurance Fund as a pillar of social stability and economic resilience in Bahrain.
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