Allowing charities to invest surplus funds

TDT | Manama

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A draft law to let charities invest surplus cash in safe local ventures such as government bonds is set to go before the Shura Council on Sunday.

The proposed amendment would revise Article 18 of Decree-Law No. 21 of 1989, which currently bars social and cultural societies from any form of financial speculation.

While high-risk schemes would remain prohibited, the change would permit associations to invest funds they do not immediately need in lower-risk instruments within Bahrain.

The Shura Council’s financial committee believes the measure could release idle money, boost liquidity in the market and give these groups a steadier way to support their work. While no exact figures have been provided on the sums involved, supporters say the law would give non-profits more room to operate without depending entirely on donations.