One-month delay for micro and SME fund revised bill vote

TDT | Manama

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Parliament voted yesterday to delay debate for one month on a revised bill that would set up a state-backed fund for micro, small and medium enterprises.

The draft law would create a public institution called the National Fund for the Care and Support of Micro, Small and Medium Enterprises.

It would have financial and administrative independence and fall under the oversight of a minister appointed by decree.

Proposal

The Financial and Economic Affairs Committee expanded the original proposal to include micro firms and amended the title, preamble and main provisions.

The text sets out aims linked to supporting the Bahraini private sector, encouraging young Bahrainis into business and promoting self-employment.

The amended draft allows the fund to provide financial and technical support, help with feasibility studies and training, assist with licensing steps, and set up project incubators and a central database.

Aims

The government has asked MPs to revisit the bill, saying its aims overlap with the Labour Fund (Tamkeen).

It also says the draft lacks studies on the likely financial impact.

The government’s view also raises legal concerns tied to proposed incentives and funding sources that intersect with laws covering fees, customs, industrial zones, state land and the Future Generations Reserve.

Support Tamkeen supports the government’s position, stating that smaller firms already form the bulk of the institutions it backs.

The Bahrain Chamber of Commerce and Industry has also cautioned against overlap with existing support channels. Groups representing smaller firms support the bill and argue for a dedicated fund.

The delay means the bill is expected to return to Parliament in January next year.