Bahrain's Future Generations Fund is set for a massive boost as His Majesty King Hamad approved a new modified savings format.

The King yesterday ratified and issued a new law, amending the 2006 Future Generations Fund Law.

This follows approval by the Shura Council and Parliament.

The new approach links savings directly to oil prices, ensuring that higher oil prices result in greater government contributions to the fund, as reported by the GDN.

The new format would see $1 saved from every exported barrel when the price is between $40 and $60; $2 when the cost is between $60 and $80; and $3 if it is above $80 and up to $100. The amount saved will rise to $4 if the price is between $100 and $120, and $5 if it exceeds $120.

Since January 2023, $1 is being saved from every barrel of oil exported if the international price is above $40 per barrel.

The law takes effect from the start of the next fiscal year and will be published in the Official Gazette.

Fund chief executive Shaikh Ali bin Salman Al Khalifa had earlier told a Shura Council committee that the government had revised the fund’s framework to save more money from the oil exported.

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