Dispute over law decree on foreign investors, employers

A parliamentary committee recently rejected a law decree that gives foreign employers and investors more privileges.

This was mentioned in a report of the Financial and Economic Affairs Committee in the Council of Representatives, in regards to a law decree that was proposed to amend the existing commercial companies’ law.

In the report, it was stated that the decree aims to allow foreigners to establish companies and operate businesses that were limited to Bahrainis, in addition to reducing the existing mandatory procedures to establish businesses.

Supporting the law decree, Industry, Commerce and Tourism Ministry said it would contribute in reviving the economy, attract more investors and empower non-oil incomes.

The ministry demanded the quick approval of the law decree considering the current unstable economic circumstances and the continuing plunge of international crude oil prices.

“This would develop the commercial sector, which is a vital part of the economy. The quick legislative processing in approving law decrees and amendments to the existing laws is required. This is to support the Kingdom’s commercial market and remove the obstacles and difficulties that face investors,” the ministry added in its reply.

The law decree was passed by the Financial and Economic Affairs Committee, but the council’s Legal and Legislative Affairs Committee remarked that the law decree consist of articles that are suspected to contradict with the constitution of Bahrain.

This will be discussed openly during the next Parliament meeting on Tuesday.