Shura Council Reviews Financial Committee Report on Proposed Amendment to Commercial Companies Law

TDT | Manama | Email : editor@newsofbahrain.com

The Shura Council is examining the report of the Financial and Economic Affairs Committee regarding the draft law amending Article (264) of the Commercial Companies Law under Decree-Law No. (21) of 2001. The draft, submitted by the Council of Representatives in its amended form, is currently under review.

Committee member Khalid Al-Maskati stated that the Financial Committee recommended rejecting the draft law due to its potentially negative long-term economic impact. He emphasized that the Kingdom of Bahrain has pursued clear policies to attract investment and strengthen confidence in its economic environment, which has successfully drawn numerous companies and investors. Preserving this competitive environment is a priority, and imposing additional burdens could reduce Bahrain’s attractiveness compared to other Gulf states.

Al-Maskati highlighted that Bahrain currently has over 91,000 commercial registrations, with small and medium-sized enterprises representing the majority. Thousands of active business activities contribute significantly to the national economy. Foreign direct investment in Bahrain has grown considerably in recent years, with industrial FDI exceeding $2 billion, reflecting the success of legislative and economic policies in enhancing Bahrain’s investment appeal, alongside its free and competitive economic environment.

He concluded that these economic achievements result from the coordinated efforts of the legislative and executive authorities. Any amendments that could disrupt this system may negatively affect the competitiveness of the national economy in the long term. Therefore, the committee recommends rejecting the proposed amendment to safeguard Bahrain’s economic gains and maintain its ability to attract investment while supporting sustainable economic growth.