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Plan to boost fund’s revenues unveiled

March 1, 2021

Manama, Feb.28 (BNA): The Government is planning to refer a draft legislation to the legislative branch to increase the deduction from oil sales in support of the Future Generations Reserve Fund.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa said that the move would boost the revenues of the fund which plays a vital role.

The new legislation is one of the important tools that will contribute to to covering the amounts withdrawn from the fund in support of the general budget within the framework of the national efforts to combat COVID-19 pandemic”, he said.

He announced that the draft legislation would be introduced within the next few months, adding that the current law imposes a deduction of a dollar in the event that the price of one barrel exceeds 40 dollars.

He underscored the importance of providing sustained support to the fund, which contributed to mitigating the fallout of the pandemic which had global repercussions.

He said that the Government is keen on continuing support to the fund, to boost its assets at the global and local levels, and ensure the sustainability of its deposits in a manner that achieves further progress and prosperity for the benefit of the Kingdom of Bahrain and its people.

He added that he maintained its stability and strengthened its assets over the past years by adopting a strategy aimed at increasing the volume of investments in fixed income securities in a way that reduces the risks imposed by the pandemic on global financial markets.

“The fund has achieved many successes, despite the difficult and volatile economic conditions by increasing the level of investment diversification to reduce risks”, the minister concluded.