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A new dedicated financial support fund could be set up for low-income Bahrainis, if MPs have their way.
The proposal, submitted by MP Dr Ali Al Nuaimi, calls for the creation of an independent ‘Financial Support Account for Low-Income Individuals’ aimed at easing the growing cost-of-living pressures faced by citizens with limited incomes.
Under the proposal, $1 would be deducted from the revenue of every barrel of crude oil exported from Bahrain whenever its price exceeds $40. The proceeds would be channelled into the new account, managed by the Finance and National Economy Ministry, with funds invested to generate additional returns.
Dr Al Nuaimi said the proposal was driven by mounting economic challenges confronting many families.
“Rising prices of housing, food, clothing and basic services are placing an increasing strain on low-income households,” he said. “This law offers a sustainable and transparent mechanism to ensure that a share of our national oil wealth directly supports those who need it the most.”
He stressed that the initiative was rooted in constitutional principles.
“The Constitution obliges the State to guarantee social security and protect citizens from poverty and hardship,” Dr Al Nuaimi said. “This fund is a practical expression of that commitment and reinforces the concept of social justice.”
According to the amended version endorsed by the services committee, financial support would be disbursed once at the end of each fiscal year to the head of the Bahraini household under three income-based categories:
Families earning less than BD300 per month would receive support equivalent to 200pc of the monthly assistance amount.
Families earning between BD301 and BD700 would receive 150pc.
Families earning between BD701 and BD1,000 would receive 100pc.
The Social Development Ministry, in co-ordination with the Finance and National Economy Ministry, would oversee disbursement, while the Social Development Minister would issue decisions specifying eligibility criteria and exact support amounts.
Dr Al Nuaimi said Parliament’s role was to push for stronger and more direct protection for citizens.
“This law ensures that support is not dependent solely on changing budget priorities, but anchored in a clear and permanent legal framework,” he said.
Parliament’s services committee, which examined the proposal across three meetings, unanimously recommended approval of the bill in its amended form.
Committee vice-chairman Abdulwahid Qarata said the legislation would have a meaningful impact on social stability.
“This proposal targets a segment of society that is often the most vulnerable to economic shocks,” he said. “Providing predictable, annual financial support will help families meet essential needs and reduce the risk of slipping into poverty.”
The Finance and National Economy Ministry, however, has cautioned that earmarking specific revenues for dedicated funds could undermine the principles of budget unity and universality. It noted that the government already allocates annual appropriations within the state budget to support low-income citizens and is reviewing broader options to restructure government support programmes.
Dr Al Nuaimi said the committee was mindful of concerns raised by the Finance and National Economy Ministry regarding the creation of special funds, but believed the social benefits outweighed the objections.
“We recognise the importance of budgetary principles, but we also believe that exceptional social circumstances sometimes require innovative solutions,” Mr Qarata said. “The committee is convinced that this law is built on sound foundations and serves the public interest.”
The legislative and legal affairs committee has confirmed that the proposed law is constitutionally sound, while the financial and economic affairs committee expressed support, highlighting its potential to improve living standards and strengthen subsidy mechanisms.
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