Bahrain Parliament to vote on establishment of National Fund for SMEs

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

A proposal for a new national fund to bolster Small and Medium Enterprises (SMEs) in Bahrain is up for consideration, despite facing opposition from several ministries and the Bahrain Chamber of Commerce and Industry (BCCI).

This fund awaits approval in the Tuesday session of the Bahrain Parliament. The Finance Ministry and the BCCI have recommended reconsideration of the proposal for several reasons, including the similarity and overlap of the fund’s tasks and authorities with those of the “Tamkeen” Labour Fund.

Championed by MPs Khalid Buanq, Ahmed Al Saloom, Ali Al Doosari, Maryam Al Dhaen, and Abdullah Al Rumaihi, the National Fund for the Care and Support of SMEs aims to tackle challenges faced by SMEs, drive economic development, create job opportunities, and reduce reliance on foreign labour.

They say the move aims to formulate policies that diversify income sources, alleviate state budget burdens, and combat unemployment.

The Ministry of Labour refrained from commenting, stating the proposal falls beyond its jurisdiction.

Similarly, the Ministry of Industry and Commerce opted not to preempt government opinion, emphasising shared interests with various entities. The Ministry of Finance expressed concern over alignment with existing funds and emphasised the importance of clear objectives and resources.

“It is imperative for government funds to have independence, define their objectives, and have available resources to achieve the purposes for which they were established,” the Ministry explained.

Tamkeen affirmed its support for SMEs but questioned the necessity of a new fund. Conversely, the BCCI opposed the proposal, advocating for the preservation of existing support programmes for SMEs. The BCCI highlighted existing programmes by Tamkeen that empower such enterprises.