Bahrain - A new dedicated financial support fund for low-income Bahrainis moved a step closer to reality yesterday after MPs unanimously approved a proposal to channel part of Bahrain’s oil revenues into direct assistance for struggling families.

The initiative, submitted by Dr Ali Al Nuaimi, calls for the establishment of an independent Financial Support Account for Low-Income Individuals.

Under the plan, $1 would be deducted from the revenue of every barrel of crude oil exported whenever prices exceed $40, with proceeds managed and invested by the Finance and National Economy Ministry.

Dr Al Nuaimi said the proposal responds to mounting cost-of-living pressures. “Rising housing, food and basic service costs are placing increasing strain on low-income households,” he said. “This law creates a sustainable and transparent mechanism to ensure that a share of our national oil wealth directly supports those who need it most.”

Parliament’s services committee chairman MP Mamdooh Al Saleh claimed the bill would strengthen social stability and provide predictable assistance.

“This proposal targets one of the most vulnerable segments of society,” he said. “Providing annual, guaranteed support will help families meet essential needs and reduce the risk of falling into poverty.”

Under the amended version, support would be paid once a year to the head of the Bahraini household, with higher amounts for families earning below BD300 per month and tiered assistance up to BD1,000.

While the Finance and National Economy Ministry cautioned against earmarking revenues, MPs argued the social benefits outweigh the concerns. The bill has now been referred to the Cabinet to be drafted into law.

Meanwhile, Parliament has unanimously approved a landmark proposal to make social insurance coverage compulsory for self-employed Bahrainis, marking a major expansion of the national social protection system.

The bill, submitted by five MPs led by Mariam Al Sayegh, seeks to amend Article (2) of the Social Insurance Law to extend mandatory coverage beyond traditional employees to include freelancers and independent workers, regardless of contract type, duration or income source. It has been referred to the Cabinet to be drafted into proper law.

Ms Al Sayegh described the move as ‘a major step towards social justice and economic protection’.“Thousands of Bahrainis today depend on freelance and self-employment income, yet they remain outside the safety net that protects other workers,” she said.

“This amendment ensures that no citizen is left exposed to old age, illness, disability or sudden loss of income simply because they chose a non-traditional career path.”She stressed that the proposal reflects changing labour market realities.“The nature of work is changing.

Digital platforms, small enterprises and independent services are growing rapidly. Our laws must evolve to guarantee dignity and stability for everyone,” Ms Al Sayegh said.

If enacted, the amendment would bring self-employed individuals and professionals - such as doctors, lawyers, engineers and architects - under the law’s wing.

A proposed legislation to exempt low-income Bahrainis from paying value-added tax has been put on hold following a government request.It came as MPs wanted to double the threshold from BD600 to BD1,200.

Labour and Legal Affairs Minister and Acting Parliament and Shura Council Affairs Minister Yousif Khalaf intervened saying any change in financial matters require study by Parliament’s financial and economic affairs committee before any consideration.

The draft legislation, prepared by the government based on a proposal from MPs, seeks to exempt Bahraini citizens earning less than BD600 per month from VAT, in an effort to ease cost-of-living pressures.

Originally framed as an exemption from ‘all types of taxes’, the bill was amended by the financial and economic affairs committee to limit the scope strictly to VAT, following concerns that a blanket tax exemption would be legally flawed and contradict existing tax structures.

Financial and economic affairs committee chairman Ahmed Al Salloom said the current amendments strike a balance between social objectives and legal reality.However, he agreed to look into the proposal by MPs to double the threshold.

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