Bahrain - MPs have voted to block fully-owned foreign businesses, companies and enterprises in Bahrain from receiving Tamkeen (Labour Fund) support if they don’t employ a certain percentage of Bahrainis.

This follows Parliament unanimously voting in favour of amendments to the 2006 Labour Fund Set-up Law during its weekly session yesterday at the National Assembly complex in Gudaibiya.

The issue has now been referred to the Shura Council. However, MPs had earlier proposed blankly disqualifying fully-owned foreign businesses, companies and enterprises from Tamkeen’s financial and training support initiatives, schemes and programmes.

It would have also seen allocated spending restricted to foreign businesses, companies and enterprises with partial Bahraini shares or stocks.

Following an initiative by services committee chairwoman Jalila Al Sayed, the government has backed the new conditional move that would mandate a certain Bahrainisation percentage, or value or operational assessment of each foreign investment to be determined by the Cabinet.

Cabinet Affairs Minister Hamad Al Malki, who is responsible for Tamkeen, said the original proposal would have affected foreign investments, especially those seeking local recruitment.

“Tamkeen’s support is for Bahrainis and it is directed to employment, longevity and promotion of Bahrainis in any business or industrial establishment,” he said.“The initiatives by Tamkeen have helped see 12,000 Bahrainis employed, 22,000 get promotion and pay rises this year, alongside 6,000 establishments to get necessary support to grow, flourish and develop.

“Tamkeen’s support has been increased per Bahraini worker to five years instead of three years to ensure further stability and consistency.”

He added that a new inspection directorate has been introduced within Tamkeen to ensure proper monitoring of financial support.The Industry and Commerce Ministry said there were 75,931 active CRs fully or partially owned by foreigners until October 2023.

It also highlighted that 456 CRs cancelled over various violations between 2021 and 2023, which the ministry stressed showed market stability through current legislations.

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