Tamkeen funding in Bahrain may soon prioritize Bahraini-owned firms, as Parliament considers who should benefit from the main support program. This shift of focus could have a significant impact on the market and change business priorities within the Kingdom. The Council of Representatives is expected to discuss an updated plan that directs Tamkeen’s resources towards Bahraini-led businesses, offering assistance for projects, training, and financial support.
The initial plan proposed blocking foreign-owned firms entirely, but the new approach allows some access for them in order to boost local companies while still involving foreign investors. The government raised concerns that completely blocking foreign firms might discourage overseas investment and unfairly limit aid to enterprises crucial to Bahrain’s economy. Tamkeen continues to support all private companies registered in Bahrain, regardless of ownership, as part of efforts to strengthen the nation’s economy in line with Bahrain’s Vision 2030.
Tamkeen supports the balanced approach proposed by the committee, which prioritizes Bahraini-owned companies while providing limited assistance to foreign-owned businesses. This version aims to support local trade without rejecting key outside investment. Despite the strong presence of foreign investment in Bahrain’s economy, only 3% of Tamkeen’s funds between 2018 and 2023 went to fully foreign-owned firms, with the majority allocated to Bahraini-owned businesses.
Over the past five years, Tamkeen’s support has benefited around 7,000 Bahrainis working in foreign-owned firms, where salaries are approximately 30% higher than in local companies. A notable example is Tamkeen’s support of Citi Bank’s tech hub, resulting in 1,000 programming roles for Bahrainis with competitive pay. This demonstrates Tamkeen’s commitment to enhancing job opportunities and skills development among locals. By focusing on supporting Bahraini firms while also assisting foreign companies, Tamkeen’s plan aims to advance Bahrain’s economic goals while maintaining a flow of foreign investment into the local market.
In conclusion, the proposed shift in Tamkeen’s funding towards Bahraini-owned businesses could have positive implications for the Kingdom’s economy. By striking a balance between supporting local companies and allowing some assistance for foreign-owned firms, Bahrain aims to boost its workforce and attract foreign investment. This approach aligns with Bahrain’s Vision 2030 and emphasizes the importance of building a strong economy that benefits both local and foreign businesses. With Tamkeen’s continued support, Bahrain is poised to achieve its economic objectives while fostering growth and development in the business sector.
