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MPs have sounded the alarm over a surge in bogus investment schemes, urging the government to impose tougher safeguards to protect citizens from being duped under the pretext of fund management.
In an urgent proposal unanimously approved yesterday (Feb 24), five MPs, led by Bader Al Tamimi, claimed that unlicensed investment schemes are proliferating, preying on small and medium‑sized investors and posing a threat to both family finances and the national economy.
“In recent months we have seen aggressive promotion of so-called investment opportunities that offer unrealistic returns without providing genuine guarantees,” he told the chamber. “These practices exploit citizens’ trust and put their hard-earned savings at risk.”
The proposal calls for effective preventive measures, tighter regulatory oversight and stricter enforcement against illegal operators.
The explanatory memorandum cites Article (4) of the Constitution, which affirms that justice, security and social solidarity are pillars guaranteed by the State, as well as Article (5/a), which recognises ownership and capital as individual rights regulated by law and bound by a social function.
“Our Constitution is clear,” Mr Al Tamimi said. “Justice and protection of property are fundamental principles. The State has a duty to safeguard citizens from exploitation and to ensure that financial activity operates within a lawful and transparent framework.”
The MPs alleged that several schemes operate without licences or sufficient regulatory oversight, often luring investors with promises of high returns in speculative ventures. They warned that such activities contribute to the growth of an informal or illegal economy and may ultimately harm the broader financial system.
“This is not only about individual losses,” Mr Al Tamimi noted. “When fraudulent schemes spread, they undermine confidence in legitimate investment channels and weaken the national economy.”
Among the proposal’s objectives are reinforcing financial transparency, protecting citizens’ savings, deterring exploitative practices and affirming the supervisory role of licensed financial institutions and regulators. It also calls for stronger awareness campaigns to educate the public about the risks associated with unregulated investments, alongside firm legal action against violators.
“Tightening oversight and prosecuting offenders in accordance with the law will send a clear message that Bahrain does not tolerate financial deception,” Mr Al Tamimi said. “We must act decisively to prevent the depletion of society’s financial resources and to protect families from devastating losses.”
MPs across the chamber backed the initiative, describing it as a necessary response to emerging financial risks.
The Cabinet is now expected to study the proposal and outline the government’s response, including any regulatory or enforcement measures deemed necessary.
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