A proposal has been presented to introduce restrictions on the number of shops and outlets selling or offering similar services from popping up in the same areas.
The proposal by five MPs, led by Parliament’s financial and economic affairs committee vice-chairman Mohammed Al Marafi, targets Bahrain’s 2016 Commercial Registration (CR) Law.
It seeks to ensure a more balanced and diverse economy by addressing issues of ‘over-saturation’ in the market.
The MPs clarified in their proposal’s covering note that Bahrain will remain an open market but they warned against the negative impact of clusters of specific businesses in small geographic areas.
They cited examples of areas flooded with restaurants, cafés, barbershops and cold stores, which have led to a ‘damaging cycle of closures and unsustainable competition’.
“We want to impose restrictions on CR issuance because several areas are becoming chaotic, with shops shutting down within months of opening,” said Mr Al Marafi. “For instance, I have witnessed a single successful burger restaurant that attracted nine other similar operators within the same year in areas like Hejayat and Buhair. The impact is commercially disastrous and everyone loses,” he added.
“The goal is to promote economic diversity where businesses can thrive long-term, rather than creating an environment where survival depends on forcing competitors out of the market.”
Mr Al Marafi said the aim is to protect both small businesses and consumers by fostering a healthier, more sustainable commercial and economic environment.
“By preventing an over-concentration of same-nature shops, we seek to allow existing businesses the space to flourish, while encouraging entrepreneurs to explore innovative ideas and untapped markets,” he said.
“The aim is to create a system where businesses support one another rather than compete to the point of destruction.
“This is not about limiting opportunity but about ensuring that opportunity leads to success.”
The proposal has garnered significant support from key figures, including Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom.
“This move does not contradict the concept of an open market,” explained Mr Al Salloom, who is president of the Strategic Thinking Bloc. “It’s about creating a sustainable environment for all businesses to co-exist and grow.
“Unfortunately, in some cases, it has become more to do with who can drive whom out of business first.”
Mr Al Salloom, who also serves on the Bahrain Chamber, added that the over-concentration of same-nature businesses often causes unnecessary financial strain for entrepreneurs and eventually limits consumer options. “We need to strike a balance,” he added. “The goal is to ensure that the market remains competitive, diverse and healthy for all investors.”
The proposal has also received strong backing from the Southern Municipal Council.
Council chairman Abdulla Abdullatif praised the progress in digitalising CR application and approval processes through platforms like Sijilat.
However, he pointed out that the lack of a thorough area survey, prior to issuing CRs, has exacerbated the issue of over-saturation in some regions.
“There is no actual assessment being done before CRs are issued, which has led to unfair and improper competition, in my opinion,” said Mr Abdullatif. “While technology has made processes faster, it’s important to ensure that due diligence and good planning accompanies progress.”
The council’s financial, administrative and legislative committee chairman Mohammed Daraj suggested the importance of excluding certain sectors, such as garages and workshops, from the proposed restrictions.
“These businesses should ideally be grouped in designated areas far from residential neighbourhoods, due to their impact on health and the environment.”
The proposal will now be reviewed by the financial and economic affairs committee following referral by Parliament Speaker Ahmed Al Musallam.
If passed, it could mark a significant shift in Bahrain’s commercial landscape, paving the way for a more organised and diverse market economy, according to the five MPs.
The feelings of the public may differ, with some consumers preferring clusters. “Adliya wouldn’t be the same without ‘Shawarma Alley’,” one fast food diner told the GDN.
mohammed@gdnmedia.bh
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