MPs Push for Industrial Fund Despite Business Concerns

TDT | Manama
Email : editor@newsofbahrain.com

MPs are advocating for the creation of an Industrial Development Fund to provide state-backed financing for Bahraini factories, but business leaders warn it could overlap with existing initiatives.

The draft law, proposed by MPs Ahmed Al Salloom, Khalid Buanaq, Zainab AbdulAmeer, Iman Shuwaiter, and Maryam Al Dhaen, calls for establishing the fund as a legally independent entity with its own finances. A nine-member board, appointed by royal decree, would oversee operations, with representatives from the Cabinet, the Economic Development Board, the Bahrain Chamber of Commerce and Industry, Mumtalakat, and the Ministry of Industry and Commerce.

Funding would come from a mix of state budget allocations, donations, and a portion of Mumtalakat’s earnings. Eligible businesses—fully Bahraini-owned factories—would have access to long-term, interest-free loans and grants to support expansion and new ventures.

Pushback from Government and Industry Bodies

The Ministry of Industry and Commerce has opposed the proposal, arguing that Bahrain’s industrial sector is already benefiting from existing policies and support mechanisms. It maintains that the government’s current strategies are effectively strengthening the manufacturing sector without the need for a separate fund.

Mumtalakat, Bahrain’s sovereign wealth fund, has also raised concerns over the financing model, emphasizing that its profits are already committed under existing regulations.

The Bahrain Chamber of Commerce and Industry has echoed these concerns, warning that the fund risks duplicating the work of existing institutions like the Economic Development Board, which attracts investment, and Tamkeen, which supports private sector growth.

Despite objections from key industry groups, the Financial and Economic Affairs Committee has endorsed the proposal, arguing that it would bolster Bahrain’s industrial sector by offering direct financial support to Bahraini-owned businesses.