The government has been urged to consider establishing a national emergency financial fund to safeguard the economy during crises and disasters that carry significant financial repercussions.
The proposal, submitted by MP Dr Ali Al Nuaimi, received unanimous approval from Parliament’s financial and economic affairs committee, which underscored the importance of preparedness amid increasing global economic uncertainty.
Under the proposal, the government would conduct financial and economic feasibility studies for creating the fund, which would be overseen by the Finance and National Economy Ministry.
The aim is to provide a structured and sustainable financial buffer during emergencies, rather than relying on ad hoc measures.
“Recent global experiences have shown that crises can emerge suddenly and place enormous pressure on public finances,” Dr Al Nuaimi said.
“This proposal is about foresight. A well-designed emergency fund would help Bahrain respond swiftly to shocks while protecting the state budget and maintaining economic stability.”
He said the fund could play a key role during events such as global financial downturns, pandemics or natural disasters, ensuring that essential services and economic support measures continue without disruption.
Financial and economic affairs committee chairman Ahmed Al Salloom said the proposal was a strategic step towards strengthening fiscal resilience.
“The committee unanimously agreed that establishing an emergency financial fund – after thorough study – would reduce the risks faced by the general budget during extraordinary circumstances,” Mr Al Salloom said.
“It would also allow the state to manage financial reserves more efficiently and maximise their investment returns.”
He added that the proposal does not call for immediate implementation, but rather for careful technical and economic assessment to ensure the fund is sustainable and aligned with Bahrain’s broader fiscal policies.
“The emphasis is on planning,” Mr Al Salloom said.
“Having a clear emergency financial framework enhances confidence in the economy and ensures that responses to crises are organised rather than reactive.”
The proposal will now be presented to Parliament for debate.
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