Ban on e-biz by expats evokes mixed reactions

Industry, Commerce and Tourism Ministry’s decision to ban expats from running online business in Bahrain has evoked mixed responses from DT News readers. The decision comes after the Ministry introduced the new Virtual Commercial Records (VCR) services, which will only be granted to the Bahrainis.

“This is a new initiative by the Ministry allowing entrepreneurs, who are operating commercial activities from multiple locations that don’t have an address or commercial records. These permits (VCRs) will make their businesses legal without the need of an actual address and would only consider the electronic sites,” said the Ministry in a statement last week. It also stressed that “expats won’t be allowed to operate such commercial activities.”

The statement came in reply to reports stating that new commercial records were issued for sellers, business owners and entrepreneurs, who utilise social media networks to market and sell their products.

 According to the Ministry, the step comes to help Bahraini entrepreneurs practise their work with the least cost, and to also legalise such activities to help them obtain consumers’ trust.

“This initiative comes to cope with the ongoing developments in the field of electronic trade through websites and social media. It will have a positive impact on the Kingdom of Bahrain’s economy,” the Ministry added. This move will affect many expatriates, who sell a variety of services and products online.

Response from readers  

DT News asked the readers: What are your thoughts on this decision by the government: Here are the responses:

Umesh: It will only create inconvenience to people, instead of generating any revenue. The ban will make the lives of people involved in it difficult. These services will be offered costly otherwise. 

Bose: I wonder how much the country has changed in just a few months. More conservative laws are coming into effect. 

Gunny:  This is one of the biggest steps taken. It will not change the situation at all. Moreover, it will force expats to leave the country and all businesses will be affected. 

John: Just once again proves that “Business Friendly Bahrain” ranks up there with Military Intelligence and Microsoft Works as one of the top ten oxymorons. 

Janet Lee: This will only lead to more illegal activities such as renting CR’s. Isn’t that illegal? 

Abdulaziz Khattak:  Bahrain has always been known to accept people from all levels of the social strata. I suggest we keep it that way. Moves such as this will only deter expats from doing any business in the country, which in turn will affect our economy. It also gives a negative image to the country, much contrary to the “business-friendly” image that we like to project. We simply can’t close all doors on the expats.  

Mark Calter:  The recent news reports on Bahrain do not make it an appealing place to do business these days.  

Lee Ann Fleetwood: Well, Bahrain Government is making it less profitable or enjoyable for expats to live in Bahrain with all these new restrictions and price hikes.