According to sources, Bahrain issued last week an edict approving privatization policies and regulations. A privatization committee will be set up under the presidency of a minister, to be appointed by the Government, and that will have members from the Finance Ministry, the Economic Development Board and the Civil Service Bureau.

The committee will submit proposals on privatization plans, study similar proposals by government and launch tenders and award them according to the current legislation.

The committee will devise clear, impartial and transparent criteria, regulations and procedures for privatization processes.

According to the sources, the committee may also submit recommendations to the Cabinet on changing legislation impeding the private sector's involvement in providing services for public projects.

According to the edict, the government may be granted a stake of the companies to be privatized in order to be able to veto some resolutions of the boards of those firms that do not serve national interests.

The Finance Ministry will publish the 'Privatization Guide' that includes all administrative and technical procedures to be followed in the privatization process.