A group of legislators has called for the setting up of an industrial development fund to support Bahraini-owned projects.
Parliament is set to vote on the proposed legislation, presented by the Strategic Thinking Bloc, led by its president and Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom, during the weekly session on Tuesday.
The MPs believe it would strengthen the country’s industrial sector and accelerate economic growth.
They said it would serve as an independent entity with financial and administrative autonomy, under the oversight of a designated minister.
According to the proposal, the fund seeks to:
- Create promising job opportunities for citizens in the manufacturing sector.
- Facilitate the transition to Industry 4.0, including renewable energy, green and blue hydrogen, manufacturing, food production, pharmaceuticals and advanced electronics.
- Boost exports of locally manufactured goods and enhance their global competitiveness.
- Increase the industrial sector’s contribution to Bahrain’s GDP and strengthen the national economy.
“Establishing this fund is a strategic step towards ensuring Bahrain’s industrial sector thrives in a competitive global market,” said Mr Al Salloom, who is also a Bahrain Chamber board member.
Mr Al Salloom
“We need to empower Bahraini businesses, modernise production processes, and support innovative industries that will drive our economic growth.
“This fund will be a game-changer for Bahrain’s industrial sector. It is not about competing with existing institutions, but complementing their efforts to create a more robust, diversified economy.”
The proposed Industrial Development Fund would be governed by a nine-member board of directors, appointed through a royal decree, with each member serving a renewable four-year term.
It would be responsible for setting policies, overseeing operations, and ensuring transparency in financial management.
The fund would have a portion of the profits from Bahrain Mumtalakat Holding Company, the country’s sovereign wealth fund, government allocations as determined by the state budget, and revenues generated from its own investment activities.
Industry and Commerce Minister Abdulla bin Adel Fakhro acknowledged the proposal, but noted that many of its objectives were already being pursued through existing government programmes.
Mr Fakhro
“The ministry is fully committed to industrial development and is actively co-ordinating with all relevant stakeholders to support Bahrain’s industrial sector,” he said, in a written response.
Bahrain Mumtalakat Holding Company, however, raised concerns about the proposal, stating that it conflicted with its legal mandate and existing investment strategy.
“The company is legally limited to financing its own subsidiaries and cannot extend funding to external private-sector companies,” it said in writing.
“Company profits are already allocated to the state treasury, as stipulated by Bahrain’s national state budget law.
“The proposed fund’s objectives fall within the broader economic policy of the government, which is responsible for directing relevant agencies to execute such initiatives.”
Mumtalakat further stated that its investment strategy is focused on maximising national wealth rather than directly financing industrial projects.
The Bahrain Chamber recommended a more co-ordinated approach to industrial development, rather than establishing a new entity that may overlap with existing institutions.
“The Economic Development Board (EDB) is already responsible for attracting investment and promoting Bahrain’s industrial sector,” it said.
“Tamkeen (Labour Fund) provides financial support and training programmes to enhance the private sector’s growth and employment capacity.
“The Industry and Commerce Ministry oversees investment promotion and industrial project support.”
The chamber argued that creating a separate fund could divert resources, and duplicate efforts already being carried out by these institutions. Instead, it suggested strengthening co-ordination between the private sector and the government to achieve the proposal’s goals.
Meanwhile, MPs are also set to debate and vote on an amendment to the 2012 Private Sector Employment Law that would grant male workers three days paid off for every newborn instead of the current day.
The amendment presented by MP Jalal Kadhem Al Mahfoodh has been recommended by Parliament’s services committee.
This comes despite objections from the Labour Ministry and the Bahrain Chamber that the move, if approved, would be harmful for businesses.
Bahrain’s two labour unions’ federations have backed the amendment.
mohammed@gdnmedia.bh
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