Latest news with #ShaikhSalmanbinKhalifaAlKhalifa
Daily Tribune
03-05-2025
- Business
- Daily Tribune
Global tax local benefit
TDT | Manama An estimated BHD130 million will be added annually to Bahrain's exchequer, when the new 15% global minimum corporate tax comes into play in the Kingdom. Small and medium-sized enterprises (SMEs) in Bahrain will not be directly affected by the tax, as it targets only companies meeting the high revenue threshold. In fact, the policy could help level the playing field by reducing the advantage large multinationals may have gained through tax avoidance. The new tax, part of a global agreement led by the Organisation for Economic Co-operation and Development (OECD), targets multinational enterprises earning over Euro 750 million in at least two of the past four years. Around 300 major companies in Bahrain will fall under this tax regime, according to the Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa. He explained that the move, designed to plug tax revenue losses and curb global tax avoidance, aligns Bahrain with over 140 other countries — including fellow Gulf states — that have signed up to the OECD's global tax framework. 'This tax places Bahrain as a credible, investment-friendly country where companies are encouraged to grow their local presence and support employment,' said the minister. 'It also ensures the Kingdom meets its international commitments and keeps pace with other countries already implementing similar rules.' The decision comes after thorough assessments with international bodies, including the OECD and the International Monetary Fund, to understand its economic impact. By complying with international tax stand - a r d s , t h e Kingdom aims to attract high-quality foreign investment — particularly from companies looking to expand their operations in a compliant and transparent market. Shaikh Salman made the announcement in response to a question by First Deputy Speaker Abdulnabi Salman in parliament. He also thanked lawmakers for their continued collaboration and reaffirmed the government's focus on the goals of Bahrain's Economic Vision 2030.
Zawya
26-03-2025
- Business
- Zawya
Bahrain: Borrowing cap set to be increased to $59.69bln
Bahrain's borrowing cap is set to be increased to BD22.5 billion from the current limit of BD16bn. The decision comes as the country's total debt surpassed the existing limit by BD1.9bn, reaching BD17.9bn by the end of last year. The amendment to the 1977 Bonds Law, which will now be reviewed by the Shura Council, was approved by 33 MPs and rejected by six others during the Parliament session yesterday. One MP failed to attend the proceedings. Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa acknowledged the financial strain following the proposed increase in borrowing, however, he emphasised that economic stability and the well-being of citizens remain the government's top priorities. 'The economic dynamics and people's standards of living are much more important,' he said. 'We will explore options that are effective and consider them later on with legislators. For now, we don't need to stall the 2025-2026 national budget,' he added. One of the key outcomes of discussions around the rise in borrowing is an agreement not to increase VAT, or remove subsidies on essential services such as electricity, water, and fuel –at least for now. Parliament's financial and economic affairs committee chairman MP Ahmed Al Salloom expressed gratitude to the government for its approach, stating that a balance between economic reforms and public welfare must be maintained. 'I thank the minister for listening to people and averting a catastrophic outcome on living standards and life in Bahrain,' Mr Al Salloom said. However, he added that while Bahrain has been investing in economic diversification and infrastructure projects, the reliance on borrowing remains a pressing concern. 'The focus should now shift to legislative discussions and economic policy adjustments that could help address the debt issue without burdening citizens with additional taxes or subsidy cuts,' he added. While the increase in borrowing is seen as necessary for short-term financial stability, a few legislators alleged that inefficiencies in government spending have led to rising debt. MP Dr Abdulhakim Al Sheno criticised the country's large administrative structure, arguing that reducing the size of the government could help control spending. 'The problem is simply an exaggerated number of ministries, government bodies, and agencies. We have an enlarged administrative structure that needs to be shrunk,' Dr Al Sheno said. He also questioned the contribution of state-owned companies, which currently provide BD40 million to the national economy. 'Do we need to borrow if those companies contribute to the economy properly?' he asked. According to the approved budget, the total spending for this year and the next will be BD8.916bn, divided into BD4.379bn this year and BD4.536bn the next. A total of BD550m will be spent on projects, divided equally into BD275m each year. The government is anticipating general revenues of around BD6.383bn – BD2.924bn this year and BD3.459bn the next. A total of BD37.234m is expected to be transferred to the Future Generations Fund from exported oil barrels – BD18.703m this year and BD18.531m the next. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
24-03-2025
- Business
- Zawya
Bahrain: Eight-point deal on budget agreed
Bahrain - Eight fundamental principles, mainly keeping VAT as it is and increasing 'sin tax', have been reached between the government and legislators. The consensus was reached at an urgent extraordinary high-profile meeting yesterday between ministers headed by Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa, MPs headed by National Assembly and Parliament Speaker Ahmed Al Musallam and Shura Council members headed by Chairman Ali Saleh Al Saleh. Shaikh Salman expressed his sincere appreciation to members of the legislative authority for their constructive co-operation and continuous efforts to serve national interests. He affirmed that the meetings between the two authorities have been productive, demonstrating mutual seriousness and responsibility in achieving the intended goals. The agreed points that would form the foundation of the new 2025-2026 national state budget: 1. No increase in VAT: To maintain economic stability and shield citizens from additional financial burdens, the government confirmed that the Value-Added Tax (VAT) rate will remain unchanged. 2. Enhancing pensioners' living standards: Recognising the importance of financial security for retirees, the budget will retain the cost-of-living allowance for pensioners introduced in the 2023-2024 budget, with an additional increase in the 2025-2026 cycle. 3. Investing in key public services: A substantial allocation has been made to improve public services, including housing, education, infrastructure, and healthcare: Housing projects: A record-breaking BD800 million will be dedicated to housing projects to ensure immediate access to housing services and reduce waiting lists. This includes private sector partnerships to expedite development. Education: A focus on hiring qualified Bahraini educators, updating curricula and expanding educational services. Infrastructure: Construction of new schools in expanding residential areas, restoration of historic schools, and enhancements to roads and sewage networks. Healthcare: An investment of BD688m to enhance medical services and facilities. Job creation and economic empowerment: Employment remains a top priority, with initiatives designed to create opportunities for Bahrainis. This will include creating 25,000 job opportunities per year, new programmes targeting the employment of 8,000 fresh graduates annually and support through the Labour Fund (Tamkeen) for 50,000 Bahrainis per year in training and financing programmes. 4. Reducing government operational costs: To ensure fiscal responsibility, ministries and government agencies will be required to cut recurring expenses by at least five per cent. 5. Low-income support: Providing direct cash support to low-income citizens in case of any adjustments to the prices of subsidised goods during the budget cycle. 6. New revenue streams and corporate responsibility: In a bid to strengthen financial sustainability, the government plans to introduce new tax regulations: Corporate taxes on companies exceeding a certain revenue threshold. Incentives for businesses that prioritise hiring Bahrainis. Increased selective taxes on energy drinks, sugary beverages, and tobacco. Introduction of carbon emission fees for companies. 7. Sustainable urban development: The budget includes initiatives to encourage the development of commercial and investment lands that remain unused, ensuring more effective urban expansion. 8. Deficit reduction strategies: To maintain fiscal stability, the government has outlined strategies to manage financial deficits and secure funding for necessary expenditures. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
13-03-2025
- Business
- Zawya
Bahrain's minister provides clarity on cryptocurrency rules
Bahrain is playing a pioneering role in regulating cryptocurrencies, implementing legal frameworks that provide confidence to investors while acknowledging associated risks, MPs heard. Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa told Parliament during its weekly session yesterday that the Central Bank of Bahrain (CBB) updates its regulations to keep pace with financial advancements. 'Bahrain is among the few countries with specific regulations governing cryptocurrencies,' he said. 'The banking and financial sector is the largest sector in our economy and we remain at the forefront of financial innovation. 'However, with any investment that carries risks, investors must be made fully aware of them.' The minister acknowledged the additional cybersecurity risks associated with digital assets but reassured MPs that Bahrain's regulatory framework helps provide stability in the sector. 'The legal framework ensures oversight over licensed entities, offering a layer of security,' he explained. 'While risks remain, the situation is far better than dealing with unregulated entities from abroad.' Shaikh Salman also clarified the distinction between digital currencies issued by central banks and private cryptocurrencies. 'The 'digital dinar' is an example of a regulated digital currency, as it is pegged to the Bahraini dinar. However, cryptocurrencies are not tied to any national currency,' he said. On the topic of a unified Gulf currency, Shaikh Salman confirmed that discussions remain ongoing at the GCC level. 'Several initiatives have been adopted to facilitate direct and instant payment settlements between GCC countries,' he added. 'However, for now, the US dollar remains the primary currency in global reserves and the US economy continues to be the world's largest.' Shaikh Salman also addressed parliamentary inquiries on the government's plans to attract investment in state-owned land, highlighting the launch of Bahrain's Government Land Investment Platform in 2022. 'This platform optimises the use of government assets and embodies the principles of Vision 2030 by ensuring sustainability, competitiveness and fairness,' he explained. 'It provides transparency and allows investors to compete for strategic projects that drive economic development.' The minister noted that previously, government lands were scattered across different entities without a centralised platform. 'Now, all available lands are listed in one place, making it easier for investors,' he said. 'The platform is regularly updated and we are witnessing significant interest from the private sector.' He added that several projects were already underway on government-owned lands, with expectations of further growth in real estate and investment activity. 'The government is committed to offering land transparently, ensuring that the best projects are developed to create promising opportunities for Bahraini citizens,' he added. Shaikh Salman further elaborated on broader governmental efforts to streamline investment procedures. 'A dedicated government team, comprising specialised entities, is working continuously to modernise government systems, including investment policies,' he revealed. He stressed the administration's commitment to reducing bureaucracy and improving efficiency. 'There is extensive work underway across government bodies to update procedures, shorten processing times and accelerate investment-related approvals,' he said. 'With Bahrain positioning itself as a financial and investment hub, the government's focus on regulatory advancements, digital transformation and attracting private sector participation is expected to drive further economic growth.' He was responding during the weekly session to questions by three MPs.
Zawya
11-03-2025
- Business
- Zawya
Bahrain announces record $2bln housing budget for 2025-2026
In a landmark move, Bahrain's government has allocated BD800 million ($2.1 billion) for housing projects and services – the largest budget in the nation's history since the introduction of this sector, reported BNA. The announcement was made during a high-level government-legislative meeting yesterday (March 9) at the National Assembly Complex in Gudaibiya, where officials discussed key priorities for the upcoming national budget 2025-2026. Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa led the government's delegation while National Assembly and Parliament Speaker Ahmed Al Musallam and Shura Council Chairman Ali Saleh Al Saleh headed their respective chambers. The government team also reviewed several ministerial priorities and projects proposed for inclusion in the state budget. These include ensuring the sustainability of housing services for citizens and reducing waiting lists by providing immediate access to housing services in partnership with the private sector. Additionally, the government team outlined initiatives to strengthen the education sector by enhancing the role of Bahraini professionals, developing curricula and educational services, and continuing infrastructure projects. These include building new schools in expanding residential cities, reopening historic schools, and constructing academic facilities within schools. Shaikh Salman stressed the significance of the unprecedented investment, asserting that ensuring sustainable housing services for citizens 'is a top priority for the government'. "The BD800 million budget aims to address one of Bahrain's longstanding challenges – housing demand," he stated. "By streamlining service delivery and working closely with private developers, the government seeks to minimise waiting times and provide immediate solutions to those in need," he noted. Shaikh Salman noted the importance of building on the cooperation between the executive and legislative authorities in various projects that benefit the Kingdom and citizens, including the 2025-2026 state budget. The minister highlighted the importance of consultations between the two authorities in shaping the next phase, reinforcing Bahrain's position across various sectors, achieving economic growth, and improving living standards for citizens by providing them with promising opportunities. The minister also emphasised the importance of enhancing cooperation to reach an agreement on the state budget that aligns with citizens' aspirations. During the meeting, the government team underscored its commitment to ensuring that the 2025-2026 state budget serves the interests of the nation and citizens by maintaining positive economic growth while achieving financial sustainability objectives. This aims to enhance development efforts, create new opportunities for citizens, and optimise support allocation for those in need. Housing and Urban Planning Minister Amna Al Romaihi revealed last month that there are 47,600 families waiting for housing services and homes across the kingdom. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
