Legislators have called for a comprehensive review of capital requirements to ensure that commercial registrations (CRs) remain active and businesses are not hindered by financial constraints.
A group of MPs, led by services committee vice-chairwoman Jalila Al Sayed, has submitted a proposal urging the Industry and Commerce Ministry to reassess the capital requirements necessary for practising various business activities.
The proposal will be debated and voted on during Tuesday’s weekly Parliament session.
The MPs claimed that the recent adjustments to capital requirements have placed financial strain on many businesses, making it difficult for them to operate sustainably.
They believe a well-structured capital requirement system can help prevent financial mismanagement, ensure a fair commercial environment and safeguard businesses’ long-term viability.
Ms Al Sayed stressed the importance of creating a supportive ecosystem for businesses in Bahrain.
“We have seen how the recent amendments to capital requirements have affected many businesses, particularly small and medium enterprises (SMEs),” she said.
“The objective is not to remove capital requirements entirely but to reassess them in a way that ensures sustainability and growth rather than imposing unnecessary financial burdens.”
She further explained that Bahrain has always been a hub for business and investment and rigid financial conditions can discourage entrepreneurs, particularly young Bahrainis, from entering the market.
“We must create a business-friendly environment where companies can thrive rather than struggle with bureaucratic hurdles,” she said.
The MPs behind the initiative believe that lowering capital entry barriers would also help small and medium-sized enterprises, which form the backbone of the Bahraini economy.
“If approved, the Industry and Commerce Ministry will be required to conduct a formal reassessment of capital requirements across different commercial activities,” she said.
“We are not calling for deregulation,” Ms Al Sayed clarified.
“Rather, we want a balanced approach that ensures businesses can meet reasonable financial obligations while continuing to grow.
“With Bahrain’s economy heavily reliant on its commercial sector, a fair and adaptable financial framework is crucial for long-term success.
“The proposal marks an important step towards achieving that balance, ensuring that businesses can operate without being unnecessarily constrained by financial regulations.”
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