Bahrain’s Shura Council is set to vote on amendments to the Future Generations Reserve Law today, with the aim of enhancing the country’s economic stability. The proposed changes seek to increase oil revenue contributions to the fund, ensuring its growth and sustainability. These amendments, originating from the Council of Representatives, target Article (1) of Law No. (28) of 2006 and are supported by the Ministry of Finance and National Economy.
The Financial and Economic Affairs Committee of the Shura Council has already given initial approval to the amendments, recognizing them as a practical measure to expand the fund’s resources. The Ministry of Oil and Environment has also expressed its support, emphasizing the need to redirect a greater share of oil income to the fund during times of higher prices. These changes are crucial for Bahrain’s economic resilience, especially during uncertain times such as the COVID-19 pandemic.
The Future Generations Reserve is seen as a vital resource for Bahrain’s economic stability, having provided $450 million to support the economy during the pandemic. The proposed amendments aim to allow the fund to expand its investments and ensure its continued growth. If approved by the Shura Council and ratified by His Majesty King Hamad bin Isa Al Khalifa, the amendments will take effect in January 2025, increasing oil revenue contributions while excluding petroleum derivatives.
At the end of 2023, the Future Generations Reserve stood at approximately $769 million. These proposed amendments are expected to build on this foundation, enabling Bahrain to save more from its oil revenues and better prepare for future economic needs. This vote underscores Bahrain’s commitment to long-term financial stability and ensuring the welfare of future generations. By strengthening the Future Generations Reserve, Bahrain is taking proactive steps to secure its economic future.
