Businesses with Bahraini shareholders are proposed

Manama: A proposal by MPs to start new businesses funded by shareholdings by Bahraini citizens will be on the agenda of the weekly parliamentary session on Tuesday.

Funds should be raised by initial public offering to Bahrainis, according to the proposal.

The group of MPs, who have submitted the proposal, said this would generate jobs, slash unemployment and revitalise the economy.

The initiative would attract citizens’ capital as well as increase their revenues and profits through shareholding, they said.

Citing statistics, they said that citizens’ bank deposits topped BD12 billion.

They called on the government to carry out a study on the feasibility of the proposal and take measures if it deemed viable.

Parliament’s financial and national economic affairs committee has approved the proposal and placed it on Tuesday’s session.

Responding to the proposal, the government said that its role is to regulate the market in all sectors, adding that it is not an investing party.

“Investment should be made through sovereign funds of pension funds,” it said, adding that Mumtalakat and Osool Asset Management are already playing an active role.

The Industry, Commerce and Tourism Ministry welcomed the establishment of closed or public shareholding companies.

It said that the Bahrain Bourse supports companies which decide to be listed in the Bahrain Investment Market (Bahrain All Share).

“Bahrain Bourse has launched a promotional campaign to list companies and turn closed shareholding firms into public ones.

Bahrain Chamber of Commerce and Industry backed the proposal, stressing the need to conduct a feasibility study.

Source: http://www.gdnonline.com/Details/896922/Businesses-with-Bahraini-shareholders-are-proposed