Bahrain - Fully-owned foreign businesses, companies and enterprises in Bahrain will not receive Tamkeen (Labour Fund) support if they don’t employ a certain percentage of Bahrainis.

The Shura Council voted unanimously in favour of amendments to the 2006 Labour Fund Set-up Law during its weekly session yesterday.

The legislation has been forwarded to His Majesty King Hamad for ratification.

Earlier this month, Parliament unanimously voted in favour of the amendments proposed by MPs and drafted by the government.

MPs had earlier proposed 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 such entities with partial Bahraini shares or stocks.

Following an initiative by Parliament’s services committee chairwoman Jalila Al Sayed, the government 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 during yesterday’s session that the original proposal before the agreed change would have affected foreign investments, especially those seeking local recruitment.

“Tamkeen’s support is for Bahrainis and it is directed at 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 at Tamkeen to ensure proper monitoring of financial support.

Tamkeen’s chief executive Maha Mofeez said aligning Bahrainisation commitments with support for foreign businesses would enable the employment of more nationals.

Industry and Commerce Ministry assistant under-secretary for industrial development Khaled Al Alawi backed the legislation in its new format.

The Bahrain Chamber has also backed the proposed legislation demanding more support for Bahraini businesses instead.

“This move will encourage foreign companies to create, find and recruit national workforce to be eligible for Tamkeen’s support,” said Shura’s financial and economic affairs committee chairman Khalid Al Maskati.

“It also enables the government to have continuous assessment of foreign companies’ investment value, assessment to operational performance and contribution to the economy.

“The criteria, rules and regulations for the support will be determined by the Cabinet giving it flexibility on possible inclusions for Tamkeen’s support, even if certain standards aren’t fully met, but with a foreign company being vital to the country.”

Services committee chairwoman Dr Jameela Al Salman said already Tamkeen was providing varying support to 93 per cent of the national workforce.

“Only 3pc foreign companies are benefiting from Tamkeen’s support for Bahrainis so far, but with this push we expect more recruitment of Bahrainis by them or other foreign companies that may come in future,” she said.

Arab Parliament Speaker and Shura member Adel Al Asoomi said Tamkeen will have to carefully monitor foreign companies to ensure compliance.

Meanwhile, a 12-member committee chaired by first vice-chairman Jamal Fakhro tasked with preparing a draft reply to His Majesty’s address during the opening of the National Assembly’s new term last month presented its report during the session.

It was approved unanimously with some additions and Shura Council Chairman Ali Saleh Al Saleh has been tasked to arrange its submission to the King.

The Shura Council also voted unanimously to indefinitely withdraw a new law to govern the profession of translation services in Bahrain.

Debate over the legislation ended in a stalemate last month.

Some members said that the rapid growth of the industry had underlined the importance of a standalone legislation to regulate it.

However, other members insisted that the occupation was being adequately covered by existing laws relating to intellectual property, language policy and consumer protection.

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