The Bahraini Minister of Finance and Economy, Salman bin Khalifa Al Khalifa, confirmed that the government will refer new legislation to Parliament to increase the deduction from oil sales for the benefit of reserves for future generations.
He said: “The new legislation is one of the important tools that will contribute to placing the fund in its appropriate position to cover the expenditures that have been withdrawn from the fund in support of the general budget within the framework of national efforts to address the Corona virus in accordance with a draft law approved by the House of Representatives.”
He added, “Work is based on presenting this legislation during the next few months, as the current law imposes a deduction of a dollar in the event that the price per barrel exceeds 40 dollars.”
He continued: “The importance of continuing to support the fund as it is one of the important funds that contributed to mitigating the repercussions and impacts that the Kingdom witnessed during the pandemic period.”
He pointed out the government’s interest in continuing to support the fund, enhancing investment in its assets at the global and local levels, and ensuring 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.
The Bahraini Minister of Finance concluded, “The fund was able to maintain its stability and strengthen 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.”