Legislators have called for a study into the possibility of selling part of Bahrain’s national carrier, Gulf Air, to private investors with Bahrain Mumtalakat Holding Company retaining more than 51pc.
The proposal by Strategic Thinking Bloc spokesman MP Khalid Bu Onk will be debated and voted on during Parliament’s weekly session on Tuesday.
He said the aim was to reduce government’s financial support for the airline while also restructuring its management and governance to enhance performance and profitability.
“The primary motivation behind the proposal is to alleviate the financial burden Gulf Air imposes on the state’s general budget,” Mr Bu Onk said in his proposal.
“Reducing subsidies to Gulf Air will allow the government to allocate resources more efficiently, ensuring better utilisation of public funds,” he added.
“The sale of a minority stake would create an opportunity to reform the company’s board of directors and restructure its executive management.
“The proposed move aims to inject new perspectives and expertise into the airline’s leadership.
“Such changes are crucial for transforming Gulf Air into a more dynamic, future-ready organisation.”
Mr Bu Onk believes that by involving private investors, Gulf Air could benefit from enhanced efficiency, improved performance and increased profitability.
“Private sector involvement tends to drive innovation and operational excellence, ensuring that Gulf Air remains competitive on a global scale,” he said.
“The initiative would contribute to the broader development of Bahrain’s economy, fostering growth for both Gulf Air and its subsidiaries.
“This is not just about Gulf Air, it’s about creating ripple effects that stimulate the entire aviation sector and related industries in the country.”
Parliament’s financial and economic affairs committee, chaired by MP Ahmed Al Salloom, has unanimously recommended approval of the proposal.
“Backing this proposal reflects a shared vision to modernise Gulf Air and position it as a key player in the global aviation industry, while safeguarding Bahrain’s economic interests,” said Mr Al Salloom, who is also the Strategic Thinking Bloc president.
“The government can conduct an in-depth feasibility study to evaluate the potential benefits and risks of partial privatisation,” he added.
“The study will ensure that the interests of the government, citizens and investors are aligned.”
He asserted that the proposal to sell part of Gulf Air’s stake represented ‘a strategic step towards ensuring the airline’s long-term sustainability and success’.
“By leveraging private investment while maintaining a controlling government share, Bahrain can position Gulf Air as a model for national carriers in the region,” he added.
“Bahrain Mumtalakat Holding Company can still continue oversight and strategic control over the national carrier.”
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