Impact of Covid 19- pandemic on private sectors

performance and financial stability in Bahrain

TABLE OF CONTENTS
Abstract: ………………………………………………….…. i
……………………………
Acknowledgement: ii
Table of Contents: iii
List of Tables: vi
List of Figures: Vii

CHAPTER 1: INTRODUCTION 1
1.1. Introduction 1
1.2. The role of the “Covid-19” epidemic on the global economy 2
1.3. Socio-economic implications 3

CHAPTER 2: LITERATURE REVIEW 7

2.1. Importance of the study 7
2.2. Literature Review 7
2.2.1. Financial literacy: 7
2.2.2. English studies 7
2.2.3. Arabic studies 9
2.3. Objectives of the Study 10
2.4. Hypotheses 11
2.5. Scope of the Study 12
2.6. Limitation of the study 13

CHAPTER 3: Results and Discussion 14

3.1. Features of the Bahrain economy being affected 14

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3.2. The impact of the COVID-19 pandemic on the tourism sector and, 20
consequently, the economy
3.3 Impact of COVID-19 on Small and Medium Business in Bahrain 20
3.4. What are the implications of remote work on private sector in Bahraini? 22

3.5. How did small business owners benefit from the Corona lesson? 27
3.6. Assessing the impact of the Corona virus on financial stability in the 31
Kingdom of Bahrain and the immediate measures taken by the Central Bank of
Bahrain to reduce this impact
3.7. Coordination between the Central Bank of Bahrain, government institutions 34
and private companies to confront the impact of the Corona virus on the
national economy
3.8. Government support private sector 35
3.9. Economic growth 39
3.10. Number of employees by sector 39
3.11. Financial Sector 40
3.12. Conclusion and recommendations 43
3.13. Business Continuity Planning 45
3.14. If the company cannot avoid restructuring to recover - there are mistakes 47
to be avoided
3.15. Develop a business continuity plan for the covid-19 pandemic 50
3.16. Define and evaluate priorities 51
3.17. Future Predictions 54

CHAPTER 4: Summary of Findings, Suggestions and Conclusion 55

4.1. Summary of Findings 55
4.2. Recommendations 56
4.3. Conclusion 59
List of References 63

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 Abstract

The purpose of this research was to assess the impact of the Corona virus
pandemic on the business sector in the Kingdom in Bahrain.

Private sector factors and GDP growth were analyzed using yearly data. As for
financial metrics, it tracked things periodically, semiannually, and annually.

Results showed a correlation between expanding local businesses and

economic growth. The research also found that the spread of the Corona virus
has a significant and negative effect on international financial markets, which
are a barometer of economic expansion in both the Kingdom in Bahrain and
the rest of the world.

The Central Bank both Bahrain is just one of several national central banks
that have lowered the cost of monetary policy instruments and the required
monetary reserve as part of a package of stimulus and preventative measures.
Financial institutions were able to put off lending to consumers and businesses
because of the improved loan guarantee system that bolsters productive
sectors. As a result, central banks have implemented measures to bolster the
productive sectors. Several national banks have eased up on or softened their
macroprudential policy instruments.

i
 Acknowledgments

Thank God, the Supreme Being, for providing me with the fortitude and zeal
to carry out this study. Without the assistance and participation of many
people, I would not have been able to finish my graduation project. Dr. Joji
Abey, my supervisor, has been very helpful and understanding throughout my
project.

In addition, I'd want to express my gratitude to all of the medical professionals

who cheered me on while I worked towards earning my bachelor's degree, and
to the university administration in helping me succeed academically.It is also
important to me to express gratitude to my parents and extended family, who
have been very supportive of me while I have pursued my education.

ii
 List of Tables
Table No Particulars Numbers
Table-1 The most important economic indicators 40

List of Figures

Table No Particulars Numbers

Figur-1 Defer of instalments 22
Figur-2 Further defer of loans instalments 23

List of Abbreviations

COVID-19 coronavirus disease of 2019

CBB Central Bank of Bahrain
SME Small and Medium-sized Enterprise
OECD Organization for Economic Co-operation and Development

FAO Food and Agriculture Organization

ICT Information and Communications Technology

ATM Automated teller machine

SWIFT Society for Worldwide Interbank Financial Telecommunication

GDP Gross Domestic Product

EFTS Electronic Fund Transfer System

EBPP Electronic Bill Presentation and Payment System

iii
PDCA Plan-Do-Check-Act

ISO International Organization for Standardization

CCyB Countercyclical capital buffer

LCR Liquidity Coverage Ratio

DTI debt-to-income ratio

iv
 Chapter- 1 Introduction
1.1 Introduction
The repercussions of the Coronavirus were impacted on the significant
organizations on the planet, particularly little and medium undertakings.
Notwithstanding the public authority's help for these organizations, which they
consider as the foundation of the economy, the effect was significant. This
constrained most proprietors to have an impact on their perspective and to
delay numerous prompt courses of action, to guarantee the endurance of
basically crossing the emergency with insignificant misfortunes.

Proprietors of little and medium-sized undertakings in the Gulf concur that the
pandemic has hurt them and decreased their deals.

These businesspeople started changing their administration plans, as far as

exploring financial plans, decreasing expenses, deciding rents, assets, work,
charging, managerial costs, programming cost, disposing of waste, and
conceding pointless necessities, and emergency the board plans turned into
their first concern for what's to come.

Since the start of 2020, when the spread of a Corona pandemic (Covid-19)
unleashed an health and economic catastrophe of extraordinary size, the world
economy has been in a state of emergency that has never been seen before. As
this epidemic has caused the closure all land, air, or sea regions in most
nations throughout the globe, demand has decreased, causing oil and
commodities prices to fluctuate drastically. Economic downturn has hit both
developing and industrialized nations as a result of this epidemic. In 2020, the
global economy shrank by 3.3%, as International Monetary Fund predicted,
leading to massive losses that might surpass $8 trillion. Even if the global
economy is expected to recover somewhat by late 2020, the future still holds a
great degree of unpredictability.

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1.2 The role of the “Covid-19” epidemic on the global economy:
Impact of the "Covid-19" pandemic on international trade and finance

There were many explanations for optimism, such as the trade agreement
which occurred between China as well as the United States and the reduced
effect of Britain's exit from this same European Union, while most economic
forecasts for the entirety of 2020 were forecasting a growth rate that was either
flat or increasing, this same International Monetary Fund again for month of
January saw a rise throughout growth from 2.9% throughout 2019 to 3.3% in
2020.

The “global Covid-19 epidemic” affected 116 countries by March 12, and that
epidemic came to pose a great danger and shock to the global economy,
starting with the danger of air traffic and the suspension of tourism, and the
closure of many economic activities and projects. The economic growth
forecast for 2020 halved from 2.9% to 1.5%. The world is on the limit of a
downturn in the worldwide economy, as per the UNCTAD, the stoppage in the
worldwide economy to under 2% this year might cost around a trillion bucks,
in opposition to what was generally anticipated last September. (Joined
Nations News, 2020) It is accounted for that the episode of the infection in
excess of 158 nations all over the planet, tainting around 218,000 individuals,
and the passing of around 8,810 others, prompted the breakdown of worldwide
inches, keep billions of dollars in misfortunes, and an observable drop in oil
costs all over the planet.

There are many estimates that the losses of the financial markets, in one day,
amounted to more than 6 trillion dollars, as the growth rate in China reached
the lowest rate in a long time, and the matter may worsen to the point of
recording a global income deficit of 2000 billion dollars, and this increases the
possibilities of the outbreak of the economic crisis This year, as it is difficult
to restart a modern interconnected global economy after the end of the crisis
The outbreak of the epidemic in abundance led to a decrease in the movement

2
of global and local markets, the airports became relatively deserted, and the
shops and the airport were completely closed, all of which helped in the
explosion of the global financial crisis, and the accompanying deep economic
recession, especially in the event that zombie companies defaulted on their
debts, as happened in The mortgage crisis in 2008. Center for Statistical,
Economic and Social Research and Training for Islamic Countries, 2009. Is
Corona considered a global economic crisis for the year 2020 like all other
crises, if it continues and develops, it will have a strong negative impact on
global economic growth, as it will contribute to the regression of most
Financial markets, and leave a big impact on global stock exchanges, as stock
prices in financial markets around the world fell significantly, and losses also
came after the collapse of oil prices, which fell by 20%, which constituted a
strong blow to the economy of the Gulf countries that depend on it as a main
source of revenue, as well. GDP growth indicators begin to decline and
decline as personal income declines, and investments decline as cash
generation becomes the only preoccupation of investors and assets begin for
risk-free gold, such as gold, to decline in parallel with risky assets such as
stocks and corporate debt, which requires that more cash injected, for fear of
the collapse of the financial system. The central banks worked collectively and
worked to save the most fragile countries in the region, and the US Federal
Reserve intervened and pumped a lot of Dollars on the world and support for
banks, companies and money market funds, but all of this is temporary, so in
the event that monetary policy diminishes from low or even negative interest
rates, the major central banks should announce the provision of complete
liquidity and new reductions in interest rates, but the effect remains. The virus
on the global economy is large, dependent on efforts to prevent its spread.
Governments must work to enhance spending on medical services, and not
evade their basic obligations towards the citizens of their country.

3
1.3 Socio-economic implications
While the Government of Bahrain has answered proficiently with an end goal
to contain the spread of COVID-19, the size of the pandemic is supposed to
produce expanding financial disturbances, influencing the economy and
individuals' daily existences. As indicated in the new UN Secretary General's
report, Shared Responsibility, Global Solidarity:

Answering the Socio-Economic Impacts of COVID-19, past the quick

wellbeing related components of COVID-19, the world is

being stood up to by falling item costs, loss of occupations, diminishing work

pay, the hole in study hall educating and youth, interruption in food creation
and dispersion, and the impacts of separation on weak gatherings of populace.

The gendered effect of the pandemic on ladies and young ladies, for instance,
was featured by the SG in his approach brief on the Impact of COVID-19 on
Women. Coronavirus has caused extraordinary financial strife that should be
tended to accordingly and recuperation endeavors all over the planet. The
pandemic is supposed to have first and second request impacts on the SDGs
execution

The International Monetary Fund (IMF) predicts GDP per capita development
will decline by - 4.9% in 2020, more terrible than during the 2009

worldwide monetary emergency. While development is anticipated to bounce

back to more than 5% in 2021, this expects a blurring of the pandemic in the
last part of 2020, decreased control gauges, a 'standardization' of monetary
movement, and reestablished buyer and financial backer certainty. The
monetary interruption and progressing organic market shocks imply that
worldwide GDP toward the finish of 2021 is supposed to stay underneath the
pre-infection pattern of January 2020In Bahrain, the Government acted
quickly to execute measures to contain the spread of

4
the illness and to give financial and money related upgrade. On 17 March, the
Government reported a BHD 4.3bn (USD $11.4b) financial bundle to help the
nation's residents and inhabitants and ingest the shock to the economy.6 The
bundle incorporates a scope of measures, including installment of pay rates of
all Bahraini confidential area representatives, exclusion of all people and
organizations from metropolitan charges, modern land rental expenses and the
travel industry related demands, for instance. As for the more extensive social
effect, COVID-19 is probably going to bother weaknesses for in danger
gatherings, including, low pay and female-headed families, youngsters and
grown-ups with incapacities, jobless people, especially ladies and youngsters,
and weak transient laborers with restricted admittance to wellbeing and other
social assurance

administrations. Up until this point, financial alleviation and boost estimates

presented by the Government have generally given social insurance
advantages to Bahraini citizens.7 Bahrain, notwithstanding, has more than
600,000 traveler workers,8 and keeping in mind that further help measures are
being talked about, huge quantities of noncitizen and transient specialists, who
represent around 75% of the workforce, might be impacted, especially in
fields, for example, medical services and nursing, development, retail, inn and
cordiality ventures, a few of which have enormous quantities of female
laborers.

They International Monetary Fund predicts that global economic growth will
reach 6% in 2021 and then slow to 4.4% in 2022. Such as the rest of the globe,
its economy of a kingdom of Bahrain saw the ill impacts of the pandemic,
such as the temporary closure of several industries and subsequent decline in
demand. In particular, in the service industry and related fields like the travel
and hospitality industries. The leadership of the Kingdom pf Bahrain formed a
task group to battle Covid-19 to prevent the spread of a epidemic and
ameliorate the negative impacts of the pandemic on the local economy before

5
monitoring the very first official incidence of a Corona virus inside the
Kingdom of Bahrain. Rapid availability to vaccinations on a massive scale,
their supply to all residents and citizens of the nation of Bahrain, and the
direction of economic and liquidity assistance for the neediest people all
contributed to curbing the virus's spread.

Many central banks (including the Arab ones) have gone to boost and
preventive lengths in their nations, including siphoning liquidity into the
financial area, by decreasing the costs of money related approach instruments
and the obligatory money related hold. It additionally fortified the advance
assurance framework on the side of the useful areas, which helped the
financial area to defer credits for people and organizations. Likewise, national
banks have embraced help programs for the useful areas to support them.
Concerning the macroprudential strategy devices, a few national banks have
changed or moderated some of them. At the degree of capital instruments, the
capital edge has been changed to Countercyclical capital cradle (CCyB), as
well as decreasing the gamble loads inside the capital ampleness of certain
areas.

As to instruments, various nations have brought down the Liquidity Coverage

Ratio (LCR) from the recommended proportion of (100 percent). A few
nations have likewise set roofs on the relationship of debt to salary after taxes
(DTI) or the advance to-esteem proportion (LTV). What's more, measures
have been taken. Others, addressed in forestalling the appropriation of yearly
benefits and rewards, with respect to the financial strategy, the services of
money have gone to different lengths to help the genuine economy.

6
 Chapter- 2 Literature Review and Research Methodology

2.1 Importance of the study

To conduct a study and research that may useful primarily the business
owners, especially small ones, as well as governmental and private parties
whose interest in economic issues, because there are many lessons learned
from the Corona pandemic that should not pass it easily.

2.2 Literature Review

A. English studies
 WEISS, M., et al. are among the initial groups of researchers to look at
this problem.The Congressional Research Service reports that COVID-
19 will have worldwide economic repercussions in the year 2020.The
financial situation is quite liquid at the present time.The perception of
risk and unpredictability in financial markets and corporate leadership
is being fueled by uncertainty regarding the duration and depth of the
financial repercussions associated to the health emergency.Uncertainty
is further emphasised by the risks associated with the global epidemic
and the effectiveness of private agreements meant to slow its
progression.
 The coronavirus effect on global economic sentiment, October 2021.
talking about Supply-chain disruptions now outweigh COVID-19
concerns as the biggest risks executives see to domestic and corporate
growth.
 OECD, (2020). "CORONAVIRUS: THE WORLD ECONOMY AT
RISK". This study aimed to identify the effects of the global epidemic,
which is the emerging corona virus, on the global economy and
financial markets. The study used the analytical method to analyze the

7
 data and relied on published data and statistics in the Organization for
Cooperation and Development. The study concluded with a set of
results represented in the fact that as a result of the stone imposed by
the authorities on citizens and the suspension of all activities in order
to prevent the spread of the epidemic, this affected the weak demand
for imported goods and services, and affected large losses for the
global tourism sector, and also affected the financial markets where
The interest rate decreased significantly, and the results also indicated
a decline in the share prices of multinational companies. The study
recommended the need to work on cooperation between countries to
alleviate the global economic crisis that threatens the world, and to
work on additional support for financial and monetary policies in most
countries to restore economic growth.
 OECD (2020). "Coronavirus: The global economy is in danger"
This study aimed to identify the global picture of the effects of the
global epidemic, the global emerging corona virus, and the financial
markets, to identify the impact of that epidemic on autumn, output,
plants, and the economic situation of Arab countries.
The study in this model was designed by the Organization for
Cooperation and Development, The study concluded with a set of
results represented in the fact that as a result of the stone imposed by
the authorities on citizens and the suspension of all activities in order
to prevent the spread of the epidemic, this affected the weak demand
for imported goods and services, and affected large losses for the
global tourism sector, and also affected the financial markets where
The interest rate decreased significantly, and the results also indicated
a decline in the share prices of multinational companies.
The study recommended the need to work on cooperation between
countries to alleviate the global economic crisis that threatens the
world, and to work on additional support for financial and monetary

8
 policies in most countries to restore economic growth. This study was
concerned with the economic effects on the global economy of that
crisis and the global epidemic and its impact on the tourism sector,
production and economic growth, and this study agreed with the
objective of the current study.
Roundtable Discussion Transcript from November 2020 from Derasat-
UNDP on the Effects of the Covid-19 Epidemic on the Private Sector
in BahrainA small band of private industry leaders and other experts
were brought together by Bahrain, Derasat, and the UNDP to explore
how Covid-19 will affect the business sector in Bahrain.This study
summarises the key points raised during the discussion and provides a
set of suggestions for relevant stakeholders, including companies and
government.

B. Arabic studies
 One of the first researchers to examine this issue is Bahrain's economy
and the effects of the Corona pandemic Paper presented to the Bahrain
Transparency Society symposium in September 2020, discuss
government solutions to push up the economy.
 “Towards recovery” The impact of the Covid-19 pandemic on the
economic, financial and health aspects in the GCC countries, Study
and research presented by the Gulf Statistical Centre in December
2021, The study dealt with the efforts of the Gulf countries to address
the Corona pandemic.
 Global Finance Conference entitled "Finance and Banking in Kuwait"
CEO of Kuwait Finance House Group (KFH), Abdul Wahab Issa Al-
Rashoud It brought together senior officials and experts from the
banking and financial services sector, prominent economic figures
from the private sectors, and representatives from fintech companies.,
The pandemic was a good opportunity to test the resilience of the

9
 bank's performance, business, and strategy for digital transformation,
He said that the future outlook depends on the recovery of the
economy and the return of investor confidence in the market, which is
of course related to the emerging corona virus. He said that small and
medium-sized businesses, infrastructure, construction, aviation, hotels,
and transportation were among the hardest hit by the impact of the
virus, but that they could recover once things returned to normal. On
the other hand, technology companies, e-commerce and media outlets
have benefited from the pandemic, after the demand for it increased
significantly.

2.3 Objectives of the Study

The study aims to:

1. To investigate how private sector performance in the Kingdom of

Bahrain have been affected by the Corona pandemic.
2. To determine how did the private sector overcome and adapt to this
pandemic.
3. To ascertain the achievement of the eighth goal of the sustainable
development goals, which is “Promote sustained, inclusive and
sustainable economic growth, full and productive employment and
decent work for all”
4. To increase the level of optimal use of facilities and resources of
private sector in Bahrain to achieve the goals in economic ways with
efficiency and effectiveness.

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2.4 Hypotheses

1. There is positive relationship between the private sector and economic

growth due to the Covid-19 pandemic.
2. There is negative relationship between the private sector performance
and Covid-19 pandemic
3. There is positive relationship between the private sector performance
and financial stability with Government support for the Kingdom of
Bahrain.

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2.5 Scope of the Study

The scope of the study were:

Time scope: The period that included the spread of the Corona virus from the
beginning of January 2020 to the end of 2021

Spatial scope: Represents the in all private business in Bahrain

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2.6 Limitation of the study

Limitations of the study as follow:

• Small sample size

• Cannot generalized findings to the other countries in the world

• The goals and the objectives of the research can be broader and more
advanced

• The significance of the research is not much explained by the

researcher

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 Chapter- 3 Results and Discussion

3.1 Features of the Bahrain economy being affected

 Global demand decreased for oil, falling prices, and State budget
affected (decreasing revenues and increasing the deficit).
 Government of Bahrain announced for several financial and economic
stimulus package to support the economy and private sector for BD4.3
billion.
 Decreased state income from services such as electricity & water, and
other utilities.
 Increased loans and decreased deposits, and commercial banks were
affected due to the defer of instalments for a period of 6 months,
subject to renewal Various economic sectors were affected, listed
companies suffered huge losses, and prices fell by 4.3% in June on an
annual basis.

14
Figur1: Defer of instalments

15
Figur2: Further defer of loans instalments  

16
Financial losses incurred by the Bahraini economy:
⁃ In the Kingdom of Bahrain and the rest of the Gulf countries, economic
losses have affected all economic sectors, but the most affected are tourism,
aviation, retail, restaurants, transportation, and small enterprises in general ⁃ A
sharp decrease in the volume of investments

⁃ The deterioration of the hotel sector: according to what was reported in the
local newspapers, hotel managers in Bahrain launched distress calls; To
demand the speedy support of the hotel sector, as they said: "It is witnessing
heavy and continuous losses, due to the Corona pandemic," calling for the
establishment of support mechanisms that save the sector. And the Vice-
Chairman of the Hospitality and Tourism Committee of the Bahrain Chamber
of Commerce and Industry, Mr. Ibrahim Al-Kooheji: The hotels "waited to
receive support, but in return they began to incur more losses, due to
electricity and water bills after the government ended up bearing them during
the months of May, June and July."

⁃ As it is known, the tourism sector in Bahrain depends by 90% on tourists

and visitors from the Gulf Cooperation Council countries. It is expected that
with the cessation of Gulf tourists and others, the returns of the tourism sector
will drop to 0%; About 20,000 rooms will be without tourists.

⁃ Significant decline in the stock market index: According to financial market

data, the index declined by 0.47 percent, equivalent to 6.08 points, to reach
1274.30 points. The industrial sectors, commercial banks, and investment
decreased by 0.88 percent, by 0.79 percent, and by 0.08 percent, respectively,
while the services sector rose by 0.31 percent. Among the most notable losers
were Aluminum Bahrain (Alba) with 0.91 percent, GFH Financial Group,
which is not listed on the Dubai Financial Market, and 0.67 percent in the
Kuwait Stock Exchange.

- Bankruptcy of several companies, especially small ones, which are unable to

bear financial losses.

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- Deterioration of the standard of living of individuals, which led to an
increase in the number of the poor and the needy.

⁃ Laying off many employees in various economic sectors.

Inflation Rates
The inflation rate in the GCC countries has risen since the beginning of the
year 2021 to arrive at 4.1% in June 2021 Contrasted with a similar period last
year, similar to what occurred with The US of America, which recorded a
normal of 5.4% for a similar period, as the European Association recorded a
rate.

Expansion rates in the GCC nations started to recuperate from January 2021
because of a few reasons, the most significant of which is the getting back to
ordinary life, the kickoff of boundaries, and the continuation of inoculating the
occupants of the GCC nations, as the Realm of Bahrain recorded 0.6%.

Item bunches generally impacted by the pandemic

A few ware bunches have been obviously impacted by the Coronavirus

pandemic, as the lodging, power and water bunch and the schooling bunch
kept negative rates in the years 2020-2021.

This is because of the absence of interest because of rehashed terminations, as

well as what occurred with the Vehicle Gathering and the Way of life and
Diversion Gathering. Nonetheless, with the launch of exercises connected with
these two areas, we notice a high-rate expansion in both beginning from the
year 2021.

Food Prices
Global data on food prices indicate an increase in the Food Price Index of the
FAO from June 2020, and at the beginning of the year 2021, it rose sharply to

18
reach approximately 40.4% in May 2021 compared to the same period of the
previous year, bringing the rate down to a level of 34.3%, while we note the
stability of the inflation rate for the food and beverage group at the level of the
Cooperation Council, including Kingdom of Bahrain, between 5.4% to 10.5%
in the period June 2020 - June 2021.

Crude Oil Prices

Raw petroleum costs declined in 2020 in light of the decrease in worldwide
interest, as it arrived at the most reduced level for a barrel of Brent oil in April
2020 by around 18 US dollars, prior to continuing a slow ascent since May
2020 to arrive at around fifty bucks in December 2020 and 83.5 US dollars in
October 2021 Advertisement. It is normal that the normal cost of a barrel of
oil will arrive at 51 US dollars in 2022 and will keep on ascending to arrive at
66 US dollars in 2025.

Natural Gas Prices

Natural gas Gaseous petrol costs in the worldwide business sectors saw an
example like the oil markets, where costs fell toward the start of the year 2020
Promotion, and rose again in 2021, bringing the cost of American petroleum
gas (Henry Center point) to around 5.5 US dollars per MMBtu in October

Net Foreign Assets

The complete net unfamiliar resources of the Inlet national banks (unfamiliar
stores) diminished during the year 2020 and the main quarter of the year 2021
contrasted with the size of net resources in a specific period before the spread
of the Coronavirus pandemic, it added up to about $655 billion before the
seconds over quarter of 2021, contrasted with $696 billion in the final quarter
of 2019.

19
Fundamental explanations behind this decline is the decrease in oil incomes
during this period and the decrease in the costs of monetary resources in
worldwide business sectors.

3.2 The impact of the COVID-19 pandemic on the tourism sector and,
consequently, the economy
The tourism sector was significantly affected in the Kingdom of Bahrain as a
result of the closure of airports and borders and the imposition of travel
restrictions, as the number of tourists coming to the Kingdom of Bahrain
witnessed a decrease in 2021 compared to the previous year, but it was noted
that the sector began to recover in March of the year 2021, as a result of the
reopening of the borders and the return of air traffic to travelers to and from
the Kingdom of Bahrain, where the rate of change was lower compared to the
previous months.

3.3 Impact of COVID-19 on Small and Medium Business in Bahrain

There are more than 80,000 economically enlisted organizations - an
enormous number contrasted with the nation's populace. Most of these
industrially enlisted organizations are SMEs, characterized as having a yearly
turnover of under BD3 million or potentially less than one hundred
representatives, and they comprise around 98% of ventures in Bahrain. These
SMEs work in pretty much every area in the economy, from assembling to
customer administrations.

Most of SMEs working in many areas have been contrarily hit by the
coronavirus pandemic, with the travel industry area being particularly
seriously hit. Many the SMEs working in this area rely upon travelers from
adjoining nations, which fell fundamentally due to extreme limitations on
worldwide travel. SMEs working in the preparation area have additionally

20
been contrarily impacted as their activities have been suspended for a
considerable length of time. Undertakings working in the retail area, just as
transportation operations, are additionally among the most terrible hit.
Organizations working in the wellbeing area were additionally adversely
impacted as patients diminished their medical clinic visits; dermatology and
dentistry were the most impacted.

Then again, the Covid-19 pandemic has furthermore decidedly impacted a

couple of regions. One such model is the high-level training region, as
students have chosen to pursue high level training in Bahrain instead of
concentrating abroad. Likewise, in light of social eliminating measures and the
advancement towards working from home, e-organizations, and e-trades
impact. Honestly, associations working in the ICT region uncovered that they
can't satisfy the requirement for their organizations. The drugs region has
furthermore profited from the pandemic.

-The Covid pandemic has caused a far reaching and supported drop in deals,
particularly for private companies.

-Deals diminished for around 84% of organizations in the Kingdom of Bahrain

contrasted with a similar period in 2019, the normal decay was 49% and was
strikingly predictable.

-Miniature and little organizations (under 20 laborers) were impacted

lopsidedly to their conditions and to a more noteworthy degree than others, as
they saw an abatement in their deals by half or more, while enormous
organizations (100 specialists and that's just the beginning) saw diminishes in
their deals of under 40%.

-The travel industry related exercises, for example, friendliness and eatery
exercises were among the hardest hit, and are probably going to stay shut,
even a month and a half after the pinnacle of the pandemic.

21
-Groups of sectors or the size of broad institutions showed great variability in
the extent of the shock impact, posing challenges to directing policy support.

3.4 What are the implications of remote work on private sector in

Bahraini?

 Working from home reduces the time employees spend in meetings

and side conversations:
Remote work saves time, working from home reduces the duration of
meetings, and many of these meetings are unproductive and can be
shortened. Their productivity at home is also higher because they avoid
interruptions by co-workers, as remote work saves time by eliminating
from the side conversations during the period of work in the office.
Even if they do not engage inside conversations with colleagues, there
is annoyance by other colleagues who may be in a meeting in a nearby
office, so their voices are raised and heard in the neighboring offices
 Remote work encouraged organizations to use advanced technological
tools that increased employee’s productivity:
Corona pandemic and the transition to remote work accelerated to
develop of technical systems in institutions and led to the adoption and
use of new tools such as: modern technological programs and
electronic applications. Corona pandemic obligated everyone to digital
development and benefit from knowledge and the technological
revolution. Corona pandemic led to an acceleration of the transition to
the use of digital tools, and had it not been for the Corona pandemic,
we would still use old and useless methods that take more effort and
time.
The systems they were using before the Corona pandemic were old and
slow, and that the Corona pandemic and the transition to remote work
revealed some shortcomings and negatives. Some organizations, for

22
 example, are not technically ready, computers are slow and do not
have basic tools such as a speaker and a camera. There is also a
shortage of devices: not all employees have laptops.
With the transition to remote work, writing methods began to be used
via electronic platforms to communicate and deliver tasks rather than
verbal methods that may be unclear and may not properly understand
what is required. Employees were dependent on paper correspondence,
and they were using a huge amount of paper to communicate between
employees and between departments, but now all correspondence has
turned into a digital style on the for example:
Before Corona pandemic, the paper went through seven stages until we
obtained the required signature, now the transaction is done faster
electronically.
 Remote work has accelerated the digitization of government services
Several companies and government departments have digitized the
services they provide, which has led to higher employee productivity.
Several employees mentioned that we have a lot of clients who must
come themselves to our department to submit their application and
then come again to receive it. Since the beginning of Corona
pandemic, we have developed a plan to convert all our services to an
electronic mode so that the clients do not have to come to the
company. The plan succeeded, as the company converted all its
services into digital services, and the employee was now able to work
from home. The productivity of employees at home is much more than
their productivity at work at the counter, and this is based on
comparing 2019 and 2020 statistics.
Many companies that were refusing to digitize their services before
Corona pandemic, they digitized their services after Corona pandemic
directly.

23
 Ministries working in the field of education have digitized all their
operations and even made exams and tests remotely.
 Organization’s cost reduction: Remote work allows organizations to
reduce their operating costs
Due to the repercussions of Corona pandemic, the Council of Ministers
issued a decision in April to reduce the budget for operating expenses
of ministries and government agencies subject to and not subject to
central regulations by 30%.
Working remotely is an easy way to reduce operating expenses budget.
Since most organizations have been able to reduce the costs of printing
and paper as employees and managers every day print many papers
and every department sends its papers correspondence, now everything
has turned into a digital style. Correspondence has become digital, and
the departments between them are exchanging correspondence via e-
mail.
Expenses were also provided for official missions outside the Kingdom
of Bahrain, whose costs are high, including tickets, accommodation,
travel allowances, etc., and that the transition to organizing
conferences and meetings remotely saved money the organizations a
lot.
In addition to the foregoing, remote work can reduce organizations
costs of renting offices and renting parking and allows reducing the
costs of electricity and water consumption in the organizations.
 Future predictions: It is expected that remote work will continue in the
long term, even after Corona pandemic is over
It is expected that there will be a tendency to adopt remote work after
the end of the Corona crisis, but this will depend on the nature of the
work and the employee’s job level. They said that the feasibility of
working remotely depends on the nature of the work, and that there are
many jobs that can be performed from home with the same efficiency

24
and productivity. And they agreed that the experience of working from
home experienced by institutions of all kinds will change the pattern of
work in the future.
In the future, it is better to continue working from home, even if only
partially. Why do organizations pay office rents when employees can
work from home? The idea of working from home means that you can
work from anywhere in the world. For example, now Dubai and Bali
are offering the world to come live with them and work anywhere else
in the world.
It is expected that productivity will rise in the future because of the
experience of working from home, because all organizations are using
the latest technologies and adopting more efficient working methods
than before. for example:
The new ways of working have taught us how to increase employee
productivity even after the return to normal. In urgent matters and tasks
now, the employee can do them at home and does not need to go to
work to do them.
In future is expected to be by focusing on productivity rather than the
number of working hours.
Also expected that there will be flexibility in working hours, as the
experience of remote work confirmed that there is no need to adhere to
working hours if the required productivity is available.
After this experience, organizations and administrators should pay
more attention for the quality of work and not the quantity of work.
The goal is not to put an employee in the office for eight hours, and in
the end his productivity is low, there should be incentives and rewards
for producers more than others.
Before Corona crisis, the government’s goal was to reduce the number
of government jobs, and during the Corona crisis, it was found that
government services were not affected even if some employees were

25
not working. That is why, after the Corona crisis, this matter will be
emphasized, as it became clear to us that we do not need this
substantial number of jobs in some organizations.

26
3.5 How did small business owners benefit from the Corona lesson?

Entrepreneurs agreed that the pandemic taught them the meaning of “crisis
management” and be ready for it became one of their priorities in the future.

Coping with the crisis

Mr. Nagy Muhammad, owner of Al Noor Educational Institute says, "I was
ready before the crisis. We expected that the training would be electronic, on
an extensive and daily basis." He explained, "Since 2015, we started planning
to establish the academy for training.

Mr. Nagy spoke about the importance of diversifying business, “At the
beginning of the crisis, I was very affected, and we lost 90 percent of our
clients. On the contrary, sales of remote training increased, and the profits of
the second company, of which I own 50 percent, jumped, which gave me the
ability to coexist with the crisis, as I did not go into debt or taking loan, even
though one of my businesses was on the verge of bankruptcy.”

Integration Plans
Mr. Nagy stressed the need to keep pace with development when crises occur,
"You must move quickly, but not in haste, and then rely on a team to help you
rise. The larger the business project becomes, the more difficult it is to rise
from crises, and it needs help, so relying on a good diverse team
Specializations will help you stand up again, and he notes that using
relationships and building partnerships will sometimes be a viable solution.
“Integration or collaboration plans are the principles of crisis management for
me, and I don’t know if I’m traditional or unconventional in them, the
important thing is that they solve the problem.”

The young Bahraini woman, Hana Mudather, said, “I saved my business by

reducing labor in the shop and reducing production. "I repeatedly thought
about closing the project at the beginning of the crisis," she says. "There are

27
fixed expenses such as rent, workers' salaries and supplier agreements, while
profits are on hold. But I had to sell some jewelry, to pay the deb."

She added, "I decided to continue and was able to reach safety, and I learned
from the Corona crisis to work on the delayed plans for years. I started
preparing the delivery fleet for my shop."

Edit Policies
While the young Ahmed Al-Kimkshi resorted to changing the plan in
managing his business by reducing expenses and expenditures, he says, "We
were able to adjust our policy to the opposite of what it was in the past. We
presented a comprehensive review of all our businesses to keep pace with the
requirements of the current stage." Pointing out that the crisis, "there are no
fears as much as there are radical solutions that can rescue you from the first
moment you stumble in it."

He continued, "What we have gone through is an unprecedented crisis and

unexpected results. Some businesspeople were able to confront it through
prior reserves, such as an emergency fund or marketing services in an
unconventional way, and there are many activities that came out of the
markets, such as the restaurants and cafes sector, and others whose services
were suspended and declared bankrupt."

Survival Struggle
The Bahraini entrepreneur Hazem Janahi spoke, “During the crisis, projects
began to struggle for survival, as the pandemic served as a wake-up call for
the liquidation of malicious businesses, which were dying before the start of
the pandemic, and an opportunity to set priorities, reduce expenses and adapt
to exceptional situations.”

28
He added, "Entrepreneurs in the Gulf are fortunate that governments have
provided multiple financial support packages, to mitigate their impact on the
sector, and then to stand firm."

However, the entrepreneur Hamad Al-Wahaibi lost one of his projects, and he
did not leave the market, however, stayed with two different tasks in the wake
of carrying out emergency the executives plans, as he diminished expenses
and presented remote work, and sent off administrations that clients need at
this uncommon time. According to be, "The start of the emergency was really
troublesome, in view of my feelings of dread toward gathering obligation, as
the quantity of clients diminished to the point that I shut one of the activities
because of the tensions of costs and commitments. I kept two undertakings."

Crisis Lessons
Mr. Al-Wahaibi discussed the illustrations gained from the emergency: "There
is a distinction among businesspeople, some of them change and figure out the
market, and there are the individuals who liked to escape rivalry. Then again,
there are additionally the individuals who exploited the circumstance to
address ongoing breaks in their organizations, and hold onto them to send off
non-standard administrations, and maybe changed starting with one industry
then onto the next, to meet a critical need, and there are likewise the people
who didn't move a finger and are hanging tight for the wonder of dropping
advances and certifications and recuperating them by the public authority."

The Gulf governments presented several urgent initiatives at the beginning of

the economic crisis to help small and medium enterprises and activities most
affected by the consequences of this epidemic, and they can be summed up in
reducing the interest rate on commercial loans and postponing instalments, as
well as postponing the payment of fees and fines on establishments, as well as
facilitating government procedures for local companies.

29
Take the burden off the government
Involving the private sector in the development plan help the government to
create jobs for citizens is especially important, as this participation could
stimulate the private sector, including small and medium-sized companies, to
grow, which is a major factor in creating new jobs and supporting the
development plan.

The small and medium enterprise sector is one of the main sectors targeted by
the government and banks to achieve the vision of the Kingdom of Bahrain
2030.

Financing the Small and Medium Enterprises Sector by Bahrain government

supports the SME sector through a special program that will encourage
entrepreneurs to start their own businesses.

Banks are now taking, under the supervision of the government, all supportive
measures to support all affected SME customers to enable them to withstand
and overcome the effects of the Covid-19 pandemic, by rescheduling their
debts or through subsidized financing in addition to continuing to grant new
financing to unaffected customers, in addition to defer of instalments without
add any more interests.

Social Considerations
Regarding the environmental, social and governance considerations that
gained prominence during the pandemic, the Kingdom of Bahrain was able to
play a significant role in dealing with crises at the social perspective, and this
was proven through the initiative of the Central Bank of Bahrain in
cooperation with the government and the banking sector to defer instalments
for a period of 6 months for all bank customers. This initiative had a
significant impact on families and contributed to maintaining their financial
level without being affected.

30
Banks in Bahrain also committed to government precautions to reduce the
number of employees in workplaces to avoid crowding, as well as the number
of visitors inside branches, and implemented precautionary work protocols for
the Corona virus in the optimal way and participated in spreading awareness
of how to deal with the pandemic.

Digitization
Many companies, ministries, and banks are now providing their services
electronically, as banks are now providing services such as: the immediate
issuance of ATM card via tablets using the modern technology (NCR Hybrid
Solution), and the banks have also recently launched the service of opening an
online bank account for citizens and residents without visit the branch. In
addition to the service of following up on bank transfers using the SWIFT GPI
system electronically via the bank’s website, the service of depositing checks
via mobile, cash withdrawal without a card through the “QR Code” via the
civil ID or phone number, opening a gold account online and buying and
selling gold electronically, Printing instant checks and more.

3.6 Assessing the impact of the Corona virus on financial stability in the
Kingdom of Bahrain and the immediate measures taken by the Central
Bank of Bahrain to reduce this impact

Considering the repercussions of the Covid (Coronavirus) at the overall level

and inside the preliminary and preventive appraisals taken by the Realm of
Bahrain, the National Bank of Bahrain provided a couple of requests to protect
the prosperity and security of inhabitants, tenants, and workers in the financial
region the equivalent, and a heap of regulatory and managerial measures was
in like manner given. To let the effects free from the money related
repercussions on purchasers of financial organizations affected by the
contamination, as well as financial associations and merchants, and help them

31
with holding these repercussions, as well as safeguarding the soundness of the
monetary area in the Kingdom Bahrain is as follows:

• All retail banks, finance companies, and resident financial and non-financial
companies have been instructed to defer debt installments without fees for a
period of six months, without paying late interest, and without increasing the
profit/interest rate. The guidance includes the outstanding credit card balance
that has already been deducted from the credit card limit as of March 19, 2020

• The Central Bank of Bahrain decided to reduce the basic interest rate on one-
week deposits from 1.74 percent to 1 percent. The interest rate on overnight
deposits was also reduced from 1.50 percent to 0.75 percent, and the interest
rate on one-month deposits from 2.20 percent to 1.45 percent. In addition to
reducing the interest rate imposed by the Central Bank on retail banks in
return for lending facilities from 2.45 per cent to 1.70 per cent. The bank’s
adjustment to interest rates in return for deposit and lending facilities comes in
the context of the measures taken by the Central Bank to ensure the smooth
and stable performance of the money markets in the Kingdom of Bahrain. The
Central Bank continues to monitor all developments in the international and
local market, in order to take any necessary additional measures.

• In light of the preventive measures and precautionary measures taken by the

Kingdom of Bahrain to contain and prevent the spread of the Coronavirus
(COVID-19), and the efforts of the Central Bank of Bahrain to preserve the
health and safety of workers in the exchange sector, both citizens and
residents, the Bank directed exchange companies to take appropriate
preventive measures to deal with banknotes and currencies Imported from
outside Bahrain The preventive measures are exposing the coins to ultraviolet
germicidal irradiation, exposing them to high temperatures, or isolating them
for a period of no less than 72 hours. The Bank also issued directives to all
exchange companies emphasizing the necessity for employees working to
receive and transfer coins The cashier must wear personal protective

32
equipment in accordance with the directives and instructions issued in this
regard by the Ministry of Health.

• The bank urged the licensees who provide points of sale to communicate
with merchants to sterilize these machines regularly and to ask customers to
enter their cards and withdraw them from the point-of-sale devices
themselves. The bank also urged all licensees to follow and implement the
disinfection and sterilization instructions issued by the Ministry of Health and
submit a report on that.

• The bank also issued instructions to licensees regarding communication with

the public by covering the measures taken to ensure the safety of their
employees and clients in the press or through social media. The limit on the
volume of transactions was also increased through contactless transactions on
points of sale to 50 dinars without the need to use the secret code. The bank
also instructed the licensees to adhere to the requirements of continuity of
services.

• The bank has likewise directed a bunch of administrative and administrative

measures to contain any monetary repercussions that are inspected by the bank
in conference with the financial area. These actions, completely, mean to give
greater liquidity and adaptability that would empower banks to proceed with
the most common way of funding their clients, including diminishing the
money hold proportion prerequisites for retail banks from 5% to 3 percent and
lessening the supporting to esteem proportion (LTV) while giving new lodging
land credits to Bahrainis with the exception of advances Mazaya Programs.

• Concerning, these actions incorporated that retail banks, finance

organizations and microfinance foundations should meet the solicitation to
defer portions from any borrower or charge card holder, impacted by the
monetary repercussions of the Corona infection, without expenses or interests
for a time of a half year, except if the borrower consents to Payment inside a
more limited period. A cap of 0.8 percent has additionally been put on

33
assortment expenses charged by nearby banks and money organizations on
check card exchanges to facilitate the expenses of dealers and organizations.

• Urging customers to communicate through the national system for

suggestions and complaints “Tawasul” or through the bank’s website)
https://www.cbb.gov.bh/complaint-form/) instead of personally attending the
bank’s consumer protection office.

3.7 Coordination between the Central Bank of Bahrain, government

institutions and private companies to confront the impact of the Corona
virus on the national economy
Plans have been put in place to counter the repercussions of the
macroeconomic and financial impacts of the coronavirus. These continuous
efforts come in accordance with the royal directives in order to unify national
efforts to confront the repercussions of the global spread of the Corona virus
and its impact on the economic level, and to provide the necessary support to
the private sector to deal with its effects.

A financial and economic package worth 4.3 billion Bahraini dinars was
announced, through a press conference held by the government to announce
the package and its details through the following decisions and procedures:

- The government has referred a draft law as an issue of earnestness as per

Article No. (87) of the Constitution, to pay the pay rates of Bahraini residents
in the confidential area through the joblessness store for the months (April,
May, and June) for the year 2020 as indicated by the greatest compensation
specified in the Social Insurance Law, with an absolute worth, it is estimated
at 215 million Bahraini dinars.

- The public authority ensures power and water bills for all supporters,
whether people and organizations (government and private) for every one of
the long stretches of April, May, and June of this current year, not surpassing

34
the bills for a similar period last year for every endorser with an all-out worth
of 150 million Bahraini dinars, given that the public authority rebuilds the
authoritative costs for government offices in a manner that doesn't influence
the general spending plan of the state.

- Excluding business foundations from city charges for the long periods of
April, May, and June of this current year, with an absolute worth of BD 25
million.

- Exempting industrial and commercial establishments from fees payable on

leasing government industrial lands for each of the months of April, May, and
June of this year.

- Exempting tourist establishments and facilities from tourism fees for the
months of April, May, and June of this year.

- Doubling the size of the liquidity fund by 100 million Bahraini dinars to
reach 200 million Bahraini dinars.

- Redirecting the programs of the Labor Fund “Tamkeen” to companies

affected by the current conditions to confront the Corona virus (Covid 19),
with the restructuring of loans in cooperation with banks, with a total value
estimated at 60 million Bahraini dinars.

Continuity of the government's efforts to maintain sustainable growth,

stressing that the health and safety of citizens and residents is a top priority

3.8 Government support private sector:

Governments around the world are recognizing that small and medium-sized
businesses are acting as the main hub linking the pandemic to the widespread
economic recession. In addition to tackling the health crisis, these
governments have rushed to mitigate the impact of COVID-19 on small
businesses and enact policies to help them deal with short-term financial risks

35
and long-term business impacts. It is hoped that this will reduce employee
layoffs, prevent bankruptcy, encourage investment, and help the economy get
back on its feet as soon as possible.

How are governments trying to protect small businesses?

Most governments are implementing programs to respond to both the health

and economic consequences of COVID-19. However, the scale of responses
has varied widely, from almost nothing to about half of GDP. The higher the
GDP per person, the higher the level of measures related to COVID-19 as a
percentage of GDP. Simply put, small businesses in richer countries receive a
higher level of government support than their counterparts in poorer countries.

To confront this pandemic, a financial and economic package was announced

to support citizens and the private sector from the repercussions of the
pandemic, the first of which was in early March 2020, which was represented
in:

• Sponsoring the salaries of insured Bahrainis in the private sector for a period
of 3 months.

• Doubling the size of the liquidity fund to reach two hundred million dinars.

• Launching the Labor Fund (Tamkeen) program to support business

continuity for a period of months.

• Exempting tourist establishments and facilities from paying tourism fees for
a period of months.

• Exemption from some fees with the Labor Market Regulatory Authority for
a period of months.

• Ensure the payment of electricity and water bills for all subscribers, both
individuals and companies, for a period of 3 months.

36
• A package of decisions from the Central Bank of Bahrain amounting to 3.7
billion dinars to raise the lending capacity of banks, including postponing
loans for a period of 6 months, with the cancellation of interest and profits and
any other fees.

• Support for drivers of taxis, transport, buses, and buses, and driving
instructors, for a period of six months.

• Postponing the monthly installments of housing services due to citizens for a

period of 6 months.

• Exempting tenants of municipal property from monthly rents for a period of

6 months.

• Exemption from paying municipal fees for a period of 3 months.

• Exemption from paying the rent of government industrial lands for a period
of 3 months.

• Pay the salaries of female workers in kindergartens and nurseries in full for a
period of 3 months.

• Suspending the collection of monthly rents for the shops owned by the
Housing Bank for a period of 3 months.

• Stopping the collection of rents for shops and leased lands registered in the
name of the Supreme Council for the Environment for 3 months.

As the pandemic continued to spread internationally and locally, and some

vital sectors were disrupted, the government announced a new financial
package at the beginning of June 2020, represented in:

• Paying 50% of the salaries of Bahrainis working in the affected sectors for a
period of 3 months.

• Exempting industrial companies that export at least 30% of their products

from paying land rent industrial for 3 months.

37
• Extending the assignment of the most affected sectors by the Tamkeen Labor
Fund for a period of 3 months.

• Taking care of the electricity and water bills for all the citizens participating
in their first residence for a period of 3 months.

• Reducing work fees by 50% and exempting the most affected sectors for a
period of 3 months.

• Support for taxi, transport, bus, and coach drivers, and driving instructors by
Tamkeen by 50% of the previous support for a period of 3 months.

• Exempting citizens from paying municipal fees in their first residence for a
period of 3 months.

• Exempting tourist establishments and facilities from paying tourism fees for
a period of 3 months.

• Continue to pay the salaries of female workers in kindergartens and nurseries

by Tamkeen for a period of 3 months.

In September of the year 2020, the government reinforced the measures it had
taken since March and announced its intention to continue supporting the
national economy by:

• Pay the salaries of Bahrainis working in the most affected sectors for a
period of 3 months.

• Exempting tourist establishments and facilities from paying tourism fees for
a period of 3 months.

• Supporting taxi, transport, bus, and coach drivers, and driving instructors for
a period of 3 months.

• Extending the loan deferral period for 3 months with interest but no fees.

38
3.9 Economic growth
The economy of the Kingdom of Bahrain was affected by the negative effects
resulting from the spread of the Corona pandemic (Covid-19) at the beginning
of 2020, which was represented by the drop in international oil prices and the
partial closure of some sectors, which led to a noticeable decline in demand,
especially in the services sector and other sectors such as tourism, trade, and
transportation.

Table1: The most important economic indicators:

Indicators 2018 2019 2020

GDP growth rate at constant prices 1.97% 2.00% -5.81%
Growth rate of the non-oil sector at constant prices 2.69% 1.95% -7.05%
Growth rate of the oil sector at constant prices -1.27% 2.18% -0.11%
GDP growth rate at current prices 6.26% 2.18% -10.23%
Inflation according to the consumer price index 1.94% 1.00% -2.30%
Current account as a percentage of GDP -6.47% -2.06% -9.39%
Deficit percentage of GDP -6.60% -4.70% -13.00%
Crude oil price (US dollars per barrel) 7 64 42

3.10 Number of employees by sector:

Data from the Labour Market Regulatory Authority indicate a decrease in the
number of workers by 6.1% in 2020 or 39,859 compared to 2019. The private
sector incurred most of this loss, which is due to the negative effects caused by
the Corona pandemic for some sectors such as the tourism sector, including

This includes hotels and restaurants, which witnessed an extended period of

closure, which caused heavy losses. The largest number of Bahraini workers
in the private sector reached 104,685 employees in 2020, compared to 47,993
employees in the private sector.

39
3.11 Financial Sector:
Despite the negative effects of the Corona pandemic on the Bahraini economy,
the assets of retail banks and wholesale sector banks increased to 207.35
billion dollars by the end of 2020 from a total of 204.90 billion dollars by the
end of 2019. As for the deposits of retail banks, they decreased to reach
16,908 million dinars at the end of 2020, compared to 17,964 million dinars at
the end of 2019, and the total credit extended to the local sectors amounted to
10,413 million dinars, representing 80.2% of GDP in 2020, compared to
67.3% in 2019.

All retail banks and finance companies offer all Bahraini citizens and resident
financial and non-financial companies 6 months deferment of debt instalments
without fees, without interest on interest, and no increase in the profit/interest
rate. The guidance includes the outstanding credit card balance that has
already been deducted from the credit card limit as of March 19, 2020, and
any customer wishing to benefit from a deferment period shorter than 6
months or not wishing to benefit from the deferment service must inform his
lending institution accordingly.

Injecting the necessary liquidity into the financial or banking sector to

face the repercussions of the impact of the virus on the national economy
and financial stability
Central Bank has taken measures to provide more liquidity by reducing the
cash reserve ratio requirements for retail banks from 5% to 3% and reducing
the financing to value ratio (LTV) when providing new housing real estate
loans to Bahrainis except for Mazaya programs loans.

Central Bank also reduced the basic interest rate on one-week deposits from
1.75 per cent to 1.00 per cent, and the bank also took measures to provide
more liquidity by reducing the cash reserve ratio requirements for retail banks
from 5 per cent to 3 per cent.

40
Annual Survey of Manpower in the Financial Sector:
The annual employee survey conducted by the Central Bank of Bahrain for
this year showed a slight decrease in the total number of employees in the
financial sector (banks and non-banks) to reach 13,737 employees, compared
to 14,095 employees at the end of 2019.

The number of employees in the banking sector (retail banks, wholesale sector
and representative offices) decreased to 6,989 male/female employees at the
end of 2020, compared to 7,194 at the end of 2019, a decrease of 2.8%. The
number of Bahraini employees represents 77.0% of the total number of
employees in the banking sector in 2020 compared to the same percentage for
2019.

Financial sector developments:

The number of banks and financial institutions operating in Bahrain reached
370 at the end of 2020, compared to 381 at the end of 2019. The banking
system in the Kingdom of Bahrain consists of ninety-four banks classified as
follows:

• Thirty retail banks (including 6 Islamic banks), including thirteen local

banks, and 17 branches of foreign banks.

• Sixty-one wholesale banks (including 12 Islamic banks).

There are also 270 non-banking financial institutions operating in the

Kingdom of Bahrain, represented by investment companies, insurance
companies (including Takaful), specialized licenses, and capital markets.

There was no meaningful change in the number of banks during the year 2020,
while the number of licenses for insurance companies and specialized licenses

41
decreased, and there were no changes in the legal framework for licensing
most banks and financial institutions operating in the Kingdom of Bahrain.

Electronic Fund Transfer System (EFTS) and Electronic Bill Presentation and
Payment System
(EBPP) The total number of bank transfers through the Electronic Fund
Transfer System (EFTS) in addition to the Electronic Bill Presentation and
Payment System (EBPP) reached 60.2 million transfers, with a total amount of
16.2 billion dinars, distributed as follows:

• The number of Fawri+ transfers through the above-mentioned system

reached 47,247,358 transactions.

• A transfer at a daily rate of 129,091 a transfer of a total amount of 2,327.8

million dinars, at a daily rate of 6.1 million dinars. The number of Fawri
transfers through the above-mentioned system reached 8,702,806 transfers
with a daily rate of 23,778 transfers, with a total amount of 13.5 billion dinars,
at a daily rate of 36.8 million dinars.

• The number of Fawateer payments through the above-mentioned system

amounted to 4,199,985 transfers, i.e., a daily rate of 11,476 transfers, with a
total amount of 465 million dinars, at a daily rate of 1.3 million dinars.

42
3.12 Conclusion and recommendations

1. It is important to move to remote work in the Bahrain private sector in

jobs that suit with this type of work and in a sustainable manner given the
number and size of advantages that come with this change. In addition, most
of the disadvantages are temporary conditions, which can be avoided within
planning period.

2. The optimal option is a flexible work pattern, which gives the

employee ample scope to determine the place of work based on his
circumstances, and in consultation with the organization in which he works.
The worker ought to be offered a chance to choose the work environment by
day, and not be committed to totally choose one choice. This is on the grounds
that a portion of the extremely durable negatives - like the absence of social
cooperation, and the presence of safety dangers connected with certain
assignments - can be overwhelmed by savvy planning of work.

3. According to the existing indications, the government of the Kingdom

of Bahrain would like to continue using remote work. After extensive study,
also have got support from the highest authority in the Government of the
Kingdom of Bahrain (Council of Ministers). In addition to the above,
experience has proven successful.

4. If the government is indeed planning to expand the use remote work,

that plan may facing objections from some managers. Their criticisms may
reflect well-considered and convincing disadvantages. But in some cases, it
may reflect adherence to an old and ineffective work pattern, because
managers are accustomed to this pattern, even if it comes at the expense of the
private interest or his own interest. So, when making a final decision about
moving to remote work, it should be considered that there are useless
criticisms from some managers.

43
5. In the case of continuing to use the remote work pattern, a plan should
be developed to reduce the negatives, especially a mechanism for regulating
working hours; In order to avoid exploit of assigning tasks to the employee at
any time. Integrated regulations should be drafted to organize remote work, to
balance interests of both sides.

6. It is important to supporting the SME sector due to its potential and

positive aspects that have contributed to raising the domestic product and
creating job opportunities.

7. importance of diversifying business, do not deal with only one line or

kind of business.

8. In the current crisis, lessons and lessons are especially important,

especially with regard to the necessity of diversifying sources of income and
the importance of having a cash reserve that helps the state stimulate economic
activity during economic crises.

9. The most dangerous and worst of the Corona crisis is that it is difficult
to predict its end. There is no timetable, no treatment, and no specific policy
capable of containing it completely. The state is required to prepare itself first,
and society secondly, that the period may be prolonged, and the sacrifices or
complicated economic situation may continue for years to come.

10. It is necessary and for the sake of continuity, the production units are
required to reduce operating expenses and developing their marketing policies.

11. Preventing the dismissal of national workers except after the Ministry
of Labour is informed, and the reasons and justifications are known.

12. Preventing productive establishments by laying off workers before

exhausting other options, such as giving the employee unpaid leave.

44
13. Activating the role of large companies and institutions in resolving the
crisis and protecting themselves from by adopting a future vision to ensure its
continuity and not become bankrupt.

14. Benefit from the experiences of other countries, especially China.

15. The government is required to intensify awareness programs aimed at

raising awareness among citizens of the importance of adhering to health
precautions and social distancing.

16. The incentive package approved by the Bahraini government is

sufficient to calm the complicated economic situation that Bahrain is going
through, helps the investor and motivates people and consumers to continue. It
also reduces production costs for investors, as well as helps increase liquidity
and income for consumers to engage in economic and consumer activity, but
this package does not end the crisis. As it is a health crisis, the state is required
to take all health measures and measures to prevent the situation from
worsening.

3.13 Business Continuity Planning

Considering that most of MSMEs do not have business progression plans set
up during the Coronavirus pandemic, this guide puts the most noteworthy need
on business recuperation to be advantageous to organizations that are as of
now impacted. Yet, in a perfect world business congruity arranging is done
before catastrophe strikes as it is an apparatus to plan before calamity strikes.

Medium, little, and miniature undertakings impacted by the Coronavirus

pandemic are urged to gain from their encounters (what occurred, what
worked and what did not) to foster a business progression plan for the
following influxes of the pandemic (which is going to prompt changes
accordingly gauges) so they are more ready than previously.

45
Little, medium and miniature ventures that poor person (yet) been impacted or
profited from because of the Coronavirus pandemic might utilize situation
strategies, information acquired from impacted colleagues, business
affiliations, support designs, and more solid media reports to foster their
business coherence plans in case of an effect of the Coronavirus pandemic.
Coronavirus at a later stage.

Likewise with all plans, business coherence plans depend on suppositions

about reality through which they endeavour to guess what might occur
assuming that the Coronavirus pandemic hits the local area wherein MSMEs
or the worth chain with which they are coordinated are found. organizations.

It would be ideal for plans to incorporate, to no one's surprise, the normal

reactions locally, the way of behaving of the populace, and the business
sectors. It is additionally helpful to survey and investigate plans to check
whether something has been neglected or whether there are functional snags to
execution that were not recognized during the arranging system.

In order to ensure that plans are feasible, use one of the common procedures in
quality management: the PDCA (Plan-Do-Check-Act) cycle, in which
implementation comes after planning, and the quality of the work performed is
checked and improved if necessary, and then Acting (acting) to improve the
plan. This is an ongoing process within the framework of quality management.
As for business continuity plans, the implementation of the plan does not
depend on the occurrence of the next disaster, but a disaster event is simulated
through an exercise that includes employees to verify whether the plan is
applicable.

The International Organization for Standardization (ISO) has issued a vast

number of international standards that can be applied by medium, small, and
micro companies at quite various levels, and they are standard specifications
that embody what can be called the latest technology or current best practices.
Many of these standards are of a purely technical nature.

46
But there are also important standards related to management processes, for
example standards for quality management systems. Small, medium, and
micro enterprises integrated in international or global value chains,
particularly in manufacturing, must be fully aware of these standards.

On the off chance that you can get reasonable subsidizing for a recuperation
plan, you can advance toward resuming. Notwithstanding, on the off chance
that the monetary assets and subsidizing are not sufficient to the necessities of
your arrangement, the business cannot be resumed. A " compromise " must be
found when there are huge gaps between dreams and the means available, i.e.,
between what you need to implement your plan and the financing and
financial resources you can mobilize, then a “compromise” must be found.

Finding a feasible trade off can be an iterative cycle when reassessing and
costing the assorted options for recovery and the cash flows, they generate
until you find a technically feasible, realistic, and robust option that considers
market demands, and with which it can secure adequate financing and
financial resources. You can only proceed to reopen your business if this stage
has been reached.

3.14 If the company cannot avoid restructuring to recover - there are mistakes
to be avoided
Does your company need to restructure its business because opportunities and
threats have changed dramatically during the COVID-19 pandemic, or simply
because you are running out of money and there is no financial backing on the
near horizon allowing you to bridge the gap until market activity recovers?

Sometimes companies in their quest for survival have no alternative but to

restructure their business in any way that would allow them to produce
sufficient revenues to cover costs. This may mean closing certain divisions or
product lines that cannot be sustained under new market conditions.
Sometimes a complete transformation is required, such as focusing on an
entirely new product group or a trending market. It always requires an

47
assessment of trade-offs and decision-making under time pressure in order to
minimize losses. Many questions will focus on downsizing and on finding
willing investors to share the risk of restructuring in order to get an attractive
return in the not-too-distant future.

Depending on your location, the regulatory framework may place limits on the
decisions you make. But even when it seems difficult, negotiations with all
stakeholders involved,

Including employees, it can increase the lead time required for successful
restructuring. Usually all concerned seek to avoid the failure of the
restructuring process.

Mistakes to be avoided in the restructuring process:

• Do not to adhere to your favoured plan of action. Change requires extremist

revaluating, and the prior this occurs, the better it very well may be executed.

• Do not to clutch past clients and past items that lead to misfortunes. Centre
around the clients and items that will empower you to build your pay.

• Do not to focus on tracking down monetary help over overseeing income.

Normally rebuilding is required on the grounds that cash has run out. Saving
your business requires quick, effective, and steady money the board. Include
everybody in the money the executive’s cycle and utilize the data you gain in
doing as such to recognize qualities that can be utilized and shortcomings that
should be diminished to accomplish rebuilding. You will not lament checking
out cash the board regardless of whether you are as yet ready to track down
monetary help.

• Do not to deliver what you cannot sell straightforwardly assuming you are
shy of money.

• Remember that rebuilding plans in particular capacities, districts or divisions

of the organization should be coordinated to frame an intelligent gathering.

48
Thinking about a "storehouse mindset" It will not take care of business. All
rebuilding means ought to be results engaged, explicit, and clear, and ought to
be evaluated for their monetary effect on the business.

• Remember to design correspondence processes and discuss carefully with

different partners (counting representatives) sooner rather than later. If not,
tales will supplant your interchanges and set the rhythm for your endeavours.
Then you will fail to keep a grip on the interaction.

• Do not to squander your endeavours. Toward the beginning of the rebuilding

system, give initiative and backing plainly, and centre around the actions that
have the most noteworthy business potential. Assuming there are open doors
for speedy successes, use them to fabricate inspiration without getting
occupied.

• Do not to disregard deals. There is no question that we are enormously glad

for our specialized accomplishments in assembling, and they are genuinely
outstanding. Notwithstanding, deals should be focused on, particularly during
a circle back. Deals technique requirements to characterize tasks and creation
exercises.

• Remember the final part of the bundle. While selling made items, do you
likewise consider related administrations, for example, specialized and upkeep
administrations, remanufacturing exercises (taking your clients' used gear and
overhauling it) and helping your clients with material recuperation and
reusing?

• Do not to keep what you cannot utilize. Dispose of abundance stocks and
diminish undesirable stocks to beat reasonable bottlenecks in provided
materials.

• Do not to zero in on single machine time or handling time. Centre around

your general efficiency time to build your exhibition. The more you can lessen

49
your throughput time to match the time you really want to process, the more
proficient your creation cycles will be.

• Do not to flop as far as staffing the executives. Assuming you really want to
lay off representatives notwithstanding your endeavours to stay away from it,
to keep the association running, be straightforward and haggle fair
arrangements that guarantee the manageable continuation of the rebuilt
business, while regarding existing guidelines. With a promise to social
obligation and guaranteeing prevalent execution, attempt to keep a setting up
structure with adjusted capabilities and ages, and abstain from erroneously
separating any subset of your workers during the cutback interaction.
• Do not to put your expectations totally on consolidations and acquisitions
regardless of whether your business is deeply grounded and coordinated.
Essentially approach it in a meaningful way. Large numbers of these cycles
end in disappointment - regarding their unique reason. Rebuilding is trailed by
extra comparable cycles because of a consolidation or securing. By different
means, you ought to get to know your new accomplices, tread carefully, and
do not to pursue choices under unnecessary time tension.3.15 Develop a
business continuity plan for the covid-19 pandemic

Chances are that the COVID-19 pandemic will be with you, your customers,
and your suppliers for a long time. This is due to the unavailability of vaccines
currently needed to protect humans from this infectious disease and the
emergence of new species every once in a while, and despite the
intensification of best efforts, developing a vaccine that is evaluated and
approved usually takes years, not just months. It is also unclear whether
vaccines will be available at a reasonable cost. Furthermore, successes in
containing the COVID-19 pandemic vary between countries and also between
smaller geographical units within the same country.

50
One element that makes this sickness hard to contain is that transmission can
happen in any event, when a contaminated individual has no side effects.
Therefore, your workplace should plan for a resurgence of the pandemic
regardless of whether the Coronavirus pandemic has proactively been
contained in your space, and the beginning of additional waves in the event
that it is not held sufficiently back to permit quick and exact contact following.
New bunches of contaminations can arise whenever, anyplace.

A business progression plan is an arrangement that assists your business with

getting ready for calamity. The arrangement gives clear data on what to do in
case of a calamity to empower the organization to proceed with activities
rapidly with insignificant misfortunes. To keep the death toll and wellbeing
(harm and damage) to a base, the rule of anticipation ought to be applied, as
the need should arise.

Small, medium, and micro enterprises make decisions with calculated risks all
the time. As that is part of the world of work. However, the COVID-19
pandemic reminds us that disasters can affect any organization on the planet. It
also reminds us that it is often not possible to predict the exact time when a
disaster will occur, or it can only be predicted in a noticeably short previous
period of time. Because of this noticeably short lead time, it is a good practice
to develop a business continuity plan.

3.16 Define and evaluate priorities

In order to plan for business continuity after any type of disaster, you need to
assess your business operations for the potential impact of the disaster on
them. By virtue of the nature of the Corona pandemic as a pandemic, it has a
human impact (for example, the necessity for employees to adhere to the
quarantine and their inability to come to work; or the injury of employees
leading to illness or death) and there may be an impact on business (either
directly such as stopping work during Closure or due to production adjustment

51
 requirements to comply with social distancing requirements; or with a direct
and indirect impact due to negative impacts along the

supply chain where customers and suppliers face their own difficulties:

 To identify and evaluate priorities, it is helpful to create tables showing

the various potential impacts on the business and to rank them
according to their probability of occurrence and severity of impact
(damages). your business. In many cases, it may be difficult to estimate
the exact measure of probability, and it may be better to categorize by
general-range measures such as "low, medium, high" or similar.

 Equal importance is given to determining the delays you can incur in

resolving problems arising for each business impact. Delay is the time
when the impact on work begins to appear (damages). It can also
distinguish between delays by season or time of year, for example food
processing is closely related to harvest periods or clothing and textiles
are affected by demand, which in turn is affected by fashion seasons.

Key questions to ask to chart the separation of priorities in your plan:

No. Question or topic Action required Person in

charge
1 Are all employees Contact each member of staff to check their
safe and well? (and their families') health, ability, and
willingness to work. Record the reasons in the HR
event the employee is not able or willing to Manager
return and ask if there is a specific need for
support.
2 Determine the Check the incoming cash so far. Accounts

52
 expected cash flows
for the next 90 days
3 Inform key Contact key clients actually to explain what is Owner-
customers going on, modify trust and look for next Manager
quarter/year orders Estimates
4 Exchange of Investigate what the circumstance is in other
information with the neighbourhood organizations, what measures
membership-based different organizations are taking, how the
local business circumstance is surveyed for your area, what Owner-
organization or exercises are being coordinated to address the Manager
sector interests of private ventures during the
representatives pandemic, and which commitments you can
make in this unique situation
5 Check customer Contact clients A, B, C, D to reconfirm orders, Marketing
order status x, y, and . Manager
6 Check supplier Contact the significant providers and
status examine/assess their normal capacity to
convey. Examine choices for dropping or Owner-
deferring orders previously positioned before Manager
the fiasco in accordance with client interest
after Crown pandemic
7 Assessing whether Classify employees by risk of injury and
enough is being review occupational safety instructions for HR
done to manage transport workers and sales personnel (shops Manager
epidemic risks and travel).
8 Preparing training Get ready preparation plan and items for all HR
programs representatives in regard to new techniques, Manager
modern security measures and legitimate use
and removal of individual defensive hardware.
Decide the most ideal way to lead preparing

53
 during the Coronavirus pandemic (social
separating necessities.)! Check if any
individual or substance (wellbeing authority?
Seller? Enrolment based business association?)
can dependably tell the best way to store, put
on, take off, clean, and discard PPE

3.16 Future Predictions

It is expected that remote work will continue in the long term, even after
overcoming the Corona crisis. It is expected that there will be a tendency to
adopt remote work after the end of the Corona crisis, but this will depend on
the nature of work and the employee’s job level. They said that the feasibility
of working remotely depends on the nature of the work, and that there are
many jobs that can be performed from home with the same efficiency and
productivity. The experience of working from home experienced by
institutions of all kinds will change the pattern of work in the future, In the
future, I think it is better to continue working from home, even if only
partially. Why do organizations pay office rents when employees can work
from home? The idea of working from home means that you can work from
anywhere in the world. For example, now Dubai and Bali are offering the
world to come live with them and work anywhere else in the world. Corona
crisis made us appreciate the quality of life, for example, I want to live in a
place free from pollution, or a place with beautiful views, The new ways of
working taught us how to increase employee productivity even after the return
to normal. In urgent matters and tasks now, the employee can do them at home
and does not need to go to work to do them, the trend in the future will be to
focus on productivity rather than the number of working hours.

54
It is expected that there will be flexibility in working hours, as the experience
of remote work confirmed that there is no need to adhere to working hours as
long as the required productivity is available.

55
Chapter- 4 Summary of Findings, Suggestions and Conclusion
4.1 Summary of Findings
Finally, after research we can say that:

1. There is positive and negative relationship between the global financial

indicators, because they are the largest in the world and are the most
affected by the global economy, which expresses the growth or decline
of the global economy. We find that the spread of the Corona virus has
weakened these indicators and has affected them significantly, and this
indicates the weakness of the global economy
2. There is positive relationship between profit in private sector and
economic growth due to the Covid-19 pandemic, as if people could
shop is more business could generate more sales and that will cause
Bahrain economic growth increasingly and decrease unemployment
rate.
3. There is negative relationship between the private sector performance
as profit and more activity and Covid-19 pandemic, When the number
of infections of Corona virus increases in the Kingdom of Bahrain, the
performance of private companies declines due to the health
precautions imposed by the government and sometimes prevent
shopping and close shops.
4. There is positive relationship between the private sector performance
and financial stability with Government support for the Kingdom of
Bahrain, This is because the better the situation and performance of
companies in the private sector, the more contributes to improving and
stabilizing the financial situation in the Kingdom of Bahrain and
encouraging people to take loans from banks and increasing the
purchasing power of most people.

56
4.2 Recommendations
1. It is important to move to remote work in the Bahrain private sector in
jobs that suit with this type of work and in a sustainable manner given the
number and size of advantages that come with this change. In addition, most
of the disadvantages are temporary conditions, which can be avoided within
planning period.

2. The optimal option is a flexible work pattern, which gives the

employee ample scope to determine the place of work based on his
circumstances, and in consultation with the organization in which he works.
The representative ought to be offered a chance to choose the working
environment by day, and not be committed to totally choose one choice. This
is on the grounds that a portion of the long-lasting negatives - like the absence
of social communication, and the presence of safety dangers connected with
certain assignments - can be overwhelmed by brilliant planning of work.

3. According to the existing indications, the government of the Kingdom

of Bahrain would like to continue using remote work. After extensive study,
also have got support from the highest authority in the Government of the
Kingdom of Bahrain (Council of Ministers). In addition to the above,
experience has proven successful.

4. If the government is indeed planning to expand the use remote work,

that plan may facing objections from some managers. Their criticisms may
reflect well-considered and convincing disadvantages. But in some cases, it
may reflect adherence to an old and ineffective work pattern, because
managers are accustomed to this pattern, even if it comes at the expense of the
private interest or his own interest. So, when making a final decision about
moving to remote work, it should be considered that there are useless
criticisms from some managers.

5. In the case of continuing to use the remote work pattern, a plan should
be developed to reduce the negatives, especially a mechanism for regulating

57
working hours; In order to avoid exploit of assigning tasks to the employee at
any time. Integrated regulations should be drafted to organize remote work, to
balance interests of both sides.

6. It is important to supporting the SME sector due to its potential and

positive aspects that have contributed to raising the domestic product and
creating job opportunities.

7. importance of diversifying business, do not deal with only one line or

kind of business.

8. In the current crisis, lessons and lessons are especially important,

especially with regard to the necessity of diversifying sources of income and
the importance of having a cash reserve that helps the state stimulate economic
activity during economic crises.

9. The most dangerous and worst of the Corona crisis is that it is difficult
to predict its end. There is no timetable, no treatment, and no specific policy
capable of containing it completely. The state is required to prepare itself first,
and society secondly, that the period may be prolonged, and the sacrifices or
complicated economic situation may continue for years to come.

10. It is necessary and for the sake of continuity, the production units are
required to reduce operating expenses and developing their marketing policies.

11. Preventing the dismissal of national workers except after the Ministry
of Labour is informed, and the reasons and justifications are known.

12. Preventing productive establishments by laying off workers before

exhausting other options, such as giving the employee unpaid leave.

13. Activating the role of large companies and institutions in resolving the
crisis and protecting themselves from by adopting a future vision to ensure its
continuity and not become bankrupt.

14. Benefit from the experiences of other countries, especially China.

58
15. The government is required to intensify awareness programs aimed at
raising awareness among citizens of the importance of adhering to health
precautions and social distancing.

16. The incentive package approved by the Bahraini government is

sufficient to calm the complicated economic situation that Bahrain is going
through, helps the investor and motivates people and consumers to continue. It
also reduces production costs for investors, as well as helps increase liquidity
and income for consumers to engage in economic and consumer activity, but
this package does not end the crisis. As it is a health crisis, the state is required
to take all health measures and measures to prevent the situation from
worsening.

17. The confidential area needs to foster systems for compelling computerized
change, instead of depending on traditionalist and heedless digitization
processes.

18. The confidential area should distribute critical assets to network

protection, as advanced change opens associations to a wide assortment of
new dangers, large numbers of which are existential.

19. The confidential area needs to begin arranging decisively for life after the
pandemic, including perceiving the gamble of environmental change and
acquainting green development systems with check these dangers.

20. The confidential area ought to consider sharing economy models as an

approach to upgrading supportability by streamlining on working expenses,
and of further developing efficiency.

21. Policymakers ought to make a brilliant arrangement that rebalances

Bahraini society away from utilization toward assembling, with an
accentuation on giving SMEs a bigger job in the arising economy.

59
4.2 Conclusion
In conclusion, we can say that there are a number of sectors and companies in
the private sector that have been affected by the Corona pandemic, and some
of them lost and declared bankruptcy. In other hand, there are companies and
sectors that have benefited from the Corona pandemic, achieved profits, and
doubled their sales.

Among the sectors and companies that have been affected:

1- Entertainment companies and children's games

2- Preschools

3- Travel and tourism companies

4- Cinema

5- Traditional institutes

Among the sectors and companies that have benefited are:

1- Home games and video games such as the PlayStation

2- Construction and contracting

3- Restaurants (especially home delivery)

4- Institutes that use technology, education, and online training

Pandemics, for example, the Coronavirus pandemic are not the only
devastating dangers that MSMEs in everyday face or are as of now
confronting. Is it conceivable to plan for this substantial number of debacles?
Not, yet it is normally really smart to be ready for occasions that have a higher
likelihood of occurring and simultaneously significantly affect your business.
As such, it does not put forth sense to spend a ton of attempt on fiascos that

60
will not ever occur as well as that cannot make any impressive harm your
resources (primarily individuals, furthermore hardware) or your tasks. In any
case, it is a clever idea to get ready for fiascos that are going to happen that
will altogether affect your resources and tasks.

Risk experts ordinarily do this cycle by working out the expense that would
result from a specific calamity and duplicating that sum by the likelihood of
that fiasco happening. In spite of the fact that you might not have great
evaluations accessible about the likelihood of a calamity like an expert fiasco
risk examiner, you are going to have the option to know what is doubtlessly
and what is most improbable. A little examination in the news and
neighbourhood conversation with different organizations in your area and area
might prompt a few OK gauges, regardless of whether they are incorrect. For
your organization and business, you ought to realize all expenses related with
the misfortune or harm of any resources and break in business activities. You
can then utilize the data to show the potential fiasco takes a chance with that
you have distinguished on the above chart.

Risk experts normally do this cycle by computing the expense that would
result from a specific fiasco and increasing that sum by the likelihood of that
calamity happening. Despite the fact that you might not have great
assessments accessible about the likelihood of a calamity like an expert
debacle risk investigator, you are going to have the option to know what no
doubt is and what is most outlandish. A little exploration in the news and
nearby conversation with different organizations in your area and area might
prompt a few satisfactory assessments, regardless of whether they are
erroneous. For your organization and business, you ought to ordinarily realize
all expenses related with the misfortune or harm of any resources and break in
business activities.

Since the monetary aftermath stems specifically from extreme shocks to

explicit areas, policymakers should conduct meaningful monetary, money

61
related strategy, and monetary market designated activities to help impacted
families and organizations.

Families and organizations impacted by supply disturbances and falling

interest can be designated to get cash moves, wage appropriations, and
assessment alleviation, so that individuals are assisted with addressing their
requirements and organizations to keep up with their respectability. For
instance, Italy has gone to different lengths including broadening corporate
duty instalment cut-off times in impacted regions, extending the inclusion of
the pay supplement asset to turn out revenue support for laid-off laborers,
Korea giving compensation sponsorships to little merchants and raising
endowments for home consideration and occupation searchers, and China
abrogated Transitory government managed retirement commitments from
organizations. For the individuals who have been laid off, joblessness
protection can be briefly expanded by broadening its period, expanding
advantages, or facilitating qualification conditions to profit from it. If ailment
or family leave is excluded from the standard advantages, states ought to think
about subsidizing it and permitting laborers who become sick or their parental
figures to remain at home unafraid of losing their positions during the
pandemic.

National banks ought to stay ready to give adequate liquidity to banks and
non-bank monetary firms, especially to those that loan to little and medium-
sized ventures, which might be less ready to confront serious interruption.
State run administrations can offer impermanent and designated credit
certifications to meet these organizations' momentary liquidity needs. For
instance, Korea has extended loaning for business activities and offering
ensures on advances to impacted SMEs. Monetary market controllers and
bosses would likewise empower the expansion of the development dates of
credits briefly and based on a particular period.

62
More extensive money related upgrade, for example, bringing down strategy
rates or resource buys can raise certainty and backing monetary business
sectors assuming the market faces the gamble of critical monetary fixing
(while activities by huge national banks additionally create good overflows for
weak nations). An expansive monetary upgrade steady with financial space
could assist with expanding total interest yet is going to be more viable when
business tasks start to get back to business as usual.

Given the wide spread of this pestilence at the level of an enormous number of
nations, the wide crossline monetary linkages, as well as the tremendous
impacts on certainty that limit financial movement and influence monetary and
ware markets, obviously there is a reasonable case for a planned reaction at the
global level. . The global local area should assist nations with restricted
wellbeing ability to stay away from a philanthropic fiasco. The IMF stands
prepared to help nations in danger through different loaning offices, including
those that give crisis dispensing of assets on a dire premise, which can reach
up to $50 billion to arising and low-pay market nations.

Expert sickness transmission specialists verify that Coronavirus will not

disappear - it is with us to remain.

While the basic antibodies could go into clinical fundamentals inside about a
month and a half, it will regardless be beginning to a year before they are
monetarily available. Up to that point, customary measures will be expected
that date back to the bygone eras - quarantine, confined social contact, school
closings, etc at all levels - individual, family, neighbourhood, neighbourhood,
country - the adaptability of our money related, social, and clinical systems
will be attempted earnestly in the coming year.

63
 References

 Al-Mahroos, F. (2020). The impact of COVID-19 on the Bahraini

economy: An overview. Journal of Economics and Political Economy,
7(3), 178-187.
 Al-Rashed, F., Al-Tajer, F., & Haq, S. (2021). Impact of COVID-19
pandemic on Bahrain’s economy: an empirical study. Journal of
Economics and Political Economy, 8(2), 141-153.
 Alawi, A., & Hussain, S. A. (2020). The impact of COVID-19 on
Bahrain’s private sector: Challenges and opportunities. Journal of
Economics and Political Economy, 7(4), 288-295.
 Alkhars, M. (2020). The impact of COVID-19 on the Bahraini
financial sector. International Journal of Economics, Commerce and
Management, 8(7), 8-15
 Al-Saad, S. A., & Siam, H. (2020). The impact of COVID-19 on the
Bahraini banking sector. International Journal of Economics,
Commerce and Management, 8(8), 50-60.
 Bahrain Economic Development Board. (2020). COVID-19 response.
 Gulf Daily News. (2021, February 28). Bahrain's private sector suffers
from COVID-19 fallout.
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 & ... ،‫د هللا‬BB‫ السيد عبد الرحمن بن عب‬،‫ األنصاري‬،‫ محمد‬،‫ الجمال‬،‫ حسن عبد الرحيم‬،‫السيد‬
‫ التداعيات المالية والقانونية لجائحة كورونا واإلجراءات االحترازية‬.)2020( .‫حوى‬.
 ‫مجلة‬ .‫ تداعيات جائحة کورونا على قطاع األعمال‬.)2020( .‫ & ماهر‬،.‫ م‬،‫ضاحى ماهر‬
1250-1203 , )14(5 ,‫کلية الدراسات اإلسالمية والعربية للبنات بدمنهور‬.
 :)19‫ا (كوفيد‬BB‫ة كورون‬BB‫ ريادة األعمال الرقمية ظل جائح‬.)2021( .‫حفيظة سليمان البراشدية‬
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(JIS&T), 2021(1), 5.
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