The government has been urged to provide more incentives to attract investments in advanced sectors, including agricultural technology, food security, pharmaceuticals, artificial intelligence, robotics, microelectronics and financial technology.
A new legislation by the Strategic Thinking Bloc, led by Parliament’s financial and economic affairs committee chairman MP Ahmed Al Salloom, is set for debate and vote during the Parliament session on Tuesday.
“The objective of this proposal is to create a favourable environment for strategic investments that will drive Bahrain’s economic growth, diversify our economy and create promising job opportunities for Bahrainis,” Mr Al Salloom said.
“This legislation aligns with the government’s broader vision for sustainable development and the economic recovery plan launched in 2021.”
It consists of nine articles, however, a crucial component of the proposed bill is Article Three, which details the incentives and benefits for investment projects, including tax exemptions, streamlined business licensing, and access to industrial land.
Article Four empowers the Industry and Commerce Ministry to establish criteria for investment projects seeking these benefits.
Further provisions regulate the transfer of ownership (Article Five) and the potential merger of investment entities (Article Six).
Article Seven imposes obligations on investors, requiring them to submit feasibility studies and inform the ministry of project timelines.
“Incentivising strategic investments is not just about financial benefits,” Mr Al Salloom emphasised.
“We want to ensure that investors bring value to Bahrain by fostering innovation, enhancing industrial capabilities and contributing to job creation.”
The proposed bill also includes mechanisms to enforce compliance. Article Eight empowers the ministry to revoke benefits if an investor fails to meet legal requirements, including reclaiming government-granted land.
“Accountability is key,” Mr Al Salloom said. “Investors who fail to uphold their commitments should not retain privileges meant for serious, long-term contributors to our economy.”
The bill has garnered support from various stakeholders, including the Bahrain Businessmen’s Association, which highlighted ‘its potential to stimulate economic activity and employment’.
The Economic Development Board (EDB) has acknowledged that the proposal aligns with Bahrain’s investment strategies but noted that most of the benefits outlined in Article Three were already provided under existing laws and international agreements.
“While we welcome initiatives that enhance Bahrain’s appeal as an investment hub, we must ensure that new legislation complements, rather than duplicates, existing frameworks,” the EDB stated.
Mr Al Salloom responded by emphasising the importance of providing ‘a clear legal structure’ that consolidates Bahrain’s investment incentives into a single, transparent framework.
“Our goal is to simplify and strengthen Bahrain’s investment environment, ensuring that businesses have confidence in the system,” he said.
“This is about securing Bahrain’s future. We are sending a message to global investors that Bahrain is open for business and ready to support strategic investments that drive sustainable growth.”
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