The Ministry of Finance & National Economy (MOFNE) is responsible for formulating and implementing the financial policies of the Kingdom of Bahrain within the overall vision of the Bahrain Government. The Ministry prepares the state general budget in coordination with other ministries and public entities in a way that reflects the financial and economic objectives of the Kingdom, particularly regarding improving living standards and increasing levels of economic growth.
MOFNE assures the progress of public investment in compliance with the financial policies of the kingdom. It also manages the public debt and maintains its levels within internationally approved limits. Financial stability is sought through the best allocation of available financial resources.
In order to enhance bilateral relations with other countries in financial and economic areas, the ministry has entered into, and is in the process of, negotiating a number of bilateral and multilateral agreements to provide a legal framework for these relations. These agreements include, Inter Alia, 'Agreements on the Promotion and Protection of Investments', 'Agreements on the Avoidance of Double Taxation', 'Free trade Agreements and Memoranda of Understanding on Financial and Economic Cooperation'.
The current Minister of Finance & National Economy is Shaikh Salman bin Khalifa Al-Khalifa, who was appointed on 4 December 2018.
History
In the early 70s, the State administrative apparatus was regulated by Decree No. (1) of 1970 establishing the State Council, which was then the cabinet. The State Council was mandated to carry out all tasks and responsibilities relating to the administration and organization of all executive affairs of the country, including State finance affairs, namely the preparation of the State budget as well as State public plan for the development of national economy and taking the necessary measures to implement them in accordance with the provisions of the laws-in-force. That Decree was subsequently followed by the issuance of many decrees and resolutions that regulate the Government executive apparatus. The following is a summary of the most important decrees and legislations relating to the organization of the Ministry of Finance from its establishment till the present time:
On 19 January 1970, Decree No. (2) of 1970 on State administrative organization was issued, organizing the Department of Finance and National Economy, which included the Directorates of Finance, Oil, Housing, Customs and Ports, and Posts.
After Bahrain’s independence, the State administrative structure was reorganized pursuant to Amiri Decree No. (2) of 1971 as well as Decree No. (3) of 1971 restructuring the Department of Finance and National Economy and the Department of Labor and Social Affairs. In this amendment, the Housing Department was moved from the Department of Finance and National Economy to the Department of Labor and Social Affairs.
After the appointment of Mr. Ibrahim Abdul-Karim as Director of the Directorate of Oil and Economy within the Department of Finance and National Economy under Resolution No. (3) of 1971, Decree No. (26) of 1972 was issued appointing him as Undersecretary of the Ministry of Finance and National Economy on 31 December 1972.
In 1975, Amiri Decree No. (13) was issued, in accordance with which the Ministry of Finance was formed, in addition to the appointment of 15 ministers in the Government, including the appointment of Mr. Mahmoud Al-Sayed Ahmed Al-Alawi as Minister of Finance. In the same year, the Economy was separated from the Finance, as the Amiri Decree No. (15) of 1975 was issued, renaming the Ministry of Commerce and Industry as the Ministry of Commerce, Agriculture and Economy.
On 2 June 1976, Amiri Decree No. (5) of 1976 was issued, whereby the Ministry of Finance and the Ministry of Commerce, Agriculture and Economy were renamed. The Ministry of Finance was renamed as the Ministry of Finance and National Economy, and the Decree No. (6) of 1976 was issued appointing Mr. Ibrahim Abdul-Karim Mohamed as Minister of Finance and National Economy.
Amiri Decree No. (8) of 1976 was issued on 14 June 1976 amending Article (1) of the Amiri Decree No. (26) of 1975, restructuring the Ministry of Finance and National Economy to include the following Directorates: Planning and Economic Affairs Statistics General Organization for Pension funds State Budget Accounts Property and Services Customs Ports
