Has the acceleration of privatization become inevitable in Bahrain?

Abstract

Bahrain remains the most vulnerable Gulf country due to its limited savings and sharp rise in debt levels, leaving it exposed to high financing risks. The financial crisis has been deepened by the economic double blow of the decline in oil prices and the effects resulting from the outbreak of the coronavirus pandemic. Bahrain has decreased subsidies and increased taxes on many products. Those measures seem, however, insufficient to mitigate the negative impacts on the economy. This paper presents a model based on a comparison between fast privatization and gradual privatization strategies undertaken in some Bahraini economic sectors. It shows that the contribution of privatization to economic restructuring is only as effective as the commitment of the government to maintain a high pace of privatization. This condition can provide needed revenues, and can particularly foster private investments and initiatives. Therefore, it may represent an appropriate context to elevate Bahrain out of the present equilibrium characterized by slow privatization and government dominance on the economy.

An overview of solid waste management and privatization in kingdom of Bahrain

“…Standard contractual arrangements that reduce government risk include financial guarantees and insurance coverage requirements (Al Naimi, 2022). Assuming and managing commodities market risk in the recycling industry is best left to the private sector, which has more experience and expertise in doing so than government authorities (Khayati, 2023). Alternative fuel vehicles, single stream collection of recyclables, new truck technology, and computer systems to monitor and more effectively manage the collection fleet are all examples of innovations driven by the private sector's ambition to enhance services, cut costs, and boost safety (Faradova, 2020).…”