Bahrain’s pearling industry is being opened up to foreign investment as the government looks to attract private companies to replace the country's existing Pearl and Gem Testing Laboratory.

A Royal Decree amending the Pearl and Precious Stone Control Law was issued in December shortly before the start of the new parliament, but it has just been put to the vote, said a report in the Gulf Daily News (GDN), our sister publication.

Only seven MPs voted in favour of the decree yesterday, 15 voted against and eight abstained - with many abstaining MPs complaining that they had not been made aware of the proposed changes ahead of time.

However, the decree was passed as under the constitution, an absolute majority of 21 votes against should be recorded for a decree to be suspended.

Despite an outcry by abstaining MPs, parliament chairman Ahmed Al Mulla referred the decree to Shura Council and waved for secretary-general Abdulla Al Dossary to move on.

Industry and Commerce Minister Zayed Al Zayani had earlier told MPs that Bahrain had to attract investment to solidify its status as a regional leader in the pearl industry.

“The current lab costs us BD200,000 ($527,273) a year and makes only BD57,000,” he said during the weekly session.

“I don't want to upgrade this facility because it will cost millions and employs just 12 people, so scrapping it is better.

“Giving the work to private companies, whether Bahraini or expatriate, is better - and rest assured that we will enforce fees on those entering the trade, meaning we will be rid of a burden, make profit and allow the market to boom.

“When the telecoms industry was opened up for competition it gave the market a huge boost, allowed more employment and made Bahrain a leader in the industry.”

Al Zayani said that MPs should move with the times.

“Why stand in the way of change, when it is imminent? Do you want pearls and precious gems to be tested in Dubai? This would have happened if the decree had not been issued by His Majesty King Hamad,” he said.

“We would have lost a lot, but we have managed to buy time.”

“My grandparents were pearl merchants and if we had continued in that profession, we would not have become the business family we are today.

“The West has developed because it attracted foreign minds and if its people said not to bring them in, those countries would not have developed.

“Cable and Wireless came to Bahrain and it is a foreign telecoms company and without it we would still be sending messages today using pigeons.”

Al Zayani added that the current Pearl and Gem Testing Laboratory employees could 'form their own company and enter as bidders' to avoid losing their jobs.

“Bahraini pearl businessmen could also form their own companies and enter as bidders '” we don't have a preference, it could be more than one company allowed in,” he said.

Meanwhile, Parliament and Shura Council Affairs Minister Ghanim Al Buainain said having an international company giving pearls and precious gems their stamp of approval 'would give it more market value and credibility'. - TradeArabia News Service