Bahrain’s small and medium enterprises are facing mounting pressure from regional instability, prompting lawmakers to propose an emergency financial intervention. A new parliamentary proposal urges the government to direct Tamkeen to temporarily cover the full salaries of Bahraini citizens employed in impacted SMEs.
Quick Facts
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Bahrain Parliament proposes full salary coverage for SME workers.
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Initiative aims to prevent bankruptcies amid regional economic downturn.
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Program targets supply chain disruptions and rising operational costs.
Navigating Supply Chain Disruptions and Market Slowdowns
The proposal, led by MP Hassan Bukhammas, chairman of Parliament’s foreign affairs, defence, and national security committee, was formally submitted to Parliament Speaker Ahmed Al Musallam. Lawmakers argue that exceptional support is critical to sustain local businesses until the economic impact of the ongoing regional conflict subsides.
According to the proposal’s explanatory memorandum, Bahraini startups and SMEs are navigating severe supply chain bottlenecks, elevated operating expenses, and a sharp drop in commercial activity. These combined headwinds place numerous companies at immediate risk of financial distress.
“The brutal attacks that have targeted the kingdom and the ongoing war have created direct and indirect economic repercussions that are already affecting many small and medium enterprises,” Bukhammas noted.
Stabilizing the National Economic Cycle
SMEs form the backbone of Bahrain’s private sector and serve as a primary engine for employing local talent. The proposed intervention outlines three structural objectives designed to stabilize this critical segment of the economy.
First, the plan aims to guarantee continuous salary disbursements for Bahraini nationals working in the private sector, shielding households from financial shocks.
Second, it attempts to alleviate severe cash-flow constraints for SME founders and employers.
Finally, the initiative seeks to sustain the broader economic cycle by curbing a potential wave of business closures and bankruptcies that could weaken the wider market.
“Protecting them from collapse and preventing the dismissal of Bahraini workers is not only an economic priority, but also a strategic and social necessity,” Bukhammas added.
He emphasized that maintaining salary stability will directly support consumer spending, offering a necessary buffer for the local market during the downturn.
About Tamkeen
Tamkeen, also known as the Labour Fund, is a Bahraini public authority established to drive national economic growth by supporting the development of the private sector. The agency provides financial backing, advisory services, and training programs to startups, SMEs, and Bahraini talent, aiming to position the private sector as the primary engine of economic development in the Kingdom.
Source: Zawya
