BD30,000 Guarantee for Companies with Non-Bahraini Partners

After hours of debate, Parliament approved an amendment to Article 264 of the Commercial Companies Law, requiring companies involving non-Bahraini partners to provide a BD30,000 bank guarantee.

The measure, MPs say, aims to protect the local market from shell companies and ensure serious investment. While the government expressed caution, lawmakers emphasized the need to safeguard businesses amid signs of market strain.

MP Jaleela Al Alawi highlighted shuttered shops and empty commercial units as evidence of weak purchasing power and short-lived ventures, warning that these are symptoms of deeper economic imbalances.

MP Mamdouh Al Saleh clarified that the BD30,000 guarantee is fully refundable, stressing it is not a fee but a tool to confirm investor commitment. “Genuine investors will not be discouraged,” he said.

Some MPs, including Hassan Ibrahim Hassan and Hisham Abdulaziz Al Awadhi, urged caution, noting that stricter rules could unintentionally affect the broader investment climate.

Despite differing opinions, Parliament’s approval sends a clear message: protecting the local market is now a priority, particularly when it comes to foreign participation in Bahraini businesses.