Bahrain’s clubs and societies may soon have the opportunity to invest their surplus revenues in the local market, under a new legislative amendment unanimously approved by Parliament.
The amendment, drafted by the government and based on a Shura Council proposal from December 2023, seeks to provide the civic entities with a sustainable financial model while ensuring strict regulations to prevent misuse of funds.
However, non-compliance with investment licence terms could lead to penalties, including up to six months in jail, a BD500 fine, or both.
Social Development Minister Osama Al Alawi welcomed the move during yesterday’s weekly session, stressing its role in enhancing the financial stability of social, cultural, sports and youth organisations.
He said the legislation carefully balances economic opportunity with regulatory safeguards, ensuring that investments remain safe and non-speculative.
“Financial speculation continues to be prohibited, but surplus amounts could be invested in safe and no-risk ventures, projects and enterprises, with priority given to the local market,” he explained.
His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, has expressed the government’s full support for the amendment.
Mr Al Alawi confirmed that the amendment aligns with the Government Action Plan 2023-2026, which prioritises empowering civic establishments to contribute to national development.
“The government is committed to creating an environment where these organisations can play a greater role in the country’s economic and social progress,” he said.
The amendment to Article 18 of the 1989 Social, Cultural, Sports and Youth Clubs, Organisations and Societies Law ensures that only surplus revenues – funds remaining after covering operational expenses – can be invested.
Civic entities will continue to be prohibited from engaging in political activities or financially speculative schemes.
Parliament’s services committee chairwoman MP Jalila Al Sayed stressed that many clubs and organisations struggle financially due to limited income streams.
“They are finding it difficult to exist because donations are not enough, while there is heavy reliance on membership contributions,” she explained.
“This is a balanced and sensible approach that allows them to cover costs while generating sustainable revenues.”
Ms Al Sayed highlighted that neighbouring countries, including Saudi Arabia, Qatar, the UAE, Oman, Yemen and Egypt have already introduced similar policies.
“Such investments would help the national economy grow and provide the market with much-needed cash flow,” she noted.
“It also allows civic establishments to expand, grow, and introduce new initiatives and programmes that have been shelved due to financial limitations or weak funding.”
Bahrain is home to approximately 650 registered charity and social organisations, many of which rely primarily on donations and membership fees to sustain their operations.
The amendment will be reviewed by the Shura Council.
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