MANAMA: Bahrain’s Transportation and Telecommunications Minister Kamal din Ahmed has announced the Kingdom’s intention to sell stakes in three large government companies, allowing the government of Bahrain to IPO shares in the organizations. In a recent interview, Minister din Ahmed stated that, “as the main shareholder in these companies, we hope the other shareholders agree, and we float a small percentage of about 20% of the companies on the Bahrain Bourse.”
The move will allow Bahrain to IPO shares in Bahrain Airport Services, Bahrain Duty Free, and the newly developed Bahrain Airport Terminal. The initial introduction of shares will offer up to 20% of the companies, and is taken as a key measure in reducing Bahrain’s budget deficit.
Bahrain is the GCC’s smallest economy, and in October 2018 agreed with Saudi Arabia, Kuwait and the UAE to a $10 Billion package of funding that will assist the country to stabilize its financial position. The funding is a key component of the Kingdom’s fiscal reform agenda that is designed to steady Bahrain’s economy, which includes other government spending reforms and voluntary early retirement measures.