Bahrain's tranining centres face closure says industry head

Record ID: 101994

  • Title: Bahrain's tranining centres face closure says industry head
  • Date: 25th May 2016
  • Summary: SALMABAD, BAHRAIN (MAY 24, 2016) (REUTERS) PRESIDENT OF THE BAHRAIN SOCIETY OF THE PRIVATE TRAINING INSTITUTES (BSPTI), DR. AHMED AL OBAIDLI, TALKING TO A MEMBER OF STAFF AT TRAINING CENTRE VARIOUS OF EMPTY TRAINING ROOMS PHOTOGRAPHS OF TRAINING SESSIONS EMPTY CLASSROOM SIGN ON DOOR READING (English): 'BAHRAIN SOCIETY OF THE PRIVATE TRAINING INSTITUTES' AL OBAIDLI TALKING TO HUMAN RESOURCES CONSULTANT (SOUNDBITE) (English) PRESIDENT OF THE BAHRAIN SOCIETY OF THE PRIVATE TRAINING INSTITUTES (BSPTI), DR. AHMED AL OBAIDLI, SAYING: "I can confirm that 95 percent of the training institutes, training centres in Bahrain are not doing any single business, they are collapsing, they are dying, and hopefully with the new recovery soon with his Royal Highness we can go back to business." AL OBAIDLI WORKING IN CONFERENCE ROOM (SOUNDBITE) (English) PRESIDENT OF THE BAHRAIN SOCIETY OF THE PRIVATE TRAINING INSTITUTES (BSPTI), DR. AHMED AL OBAIDLI, SAYING: "Since all of the 85 training centres are sitting in a very luxurious training centres because of the quality assurance requirement, so we are paying a fixed bill not less than 10 thousand to 15 thousand dinars a month without any income, so this is the problem. All our saving is gone, there is no prospects coming, there is no let's say hints of business in the sky for us." ABU-SAIBA, BAHRAIN (MAY 24, 2016) (REUTERS) SIGN ON OFFICE COUNTER DESK READING (English and Arabic): 'OASIS TRAINING CENTRE’ PROMOTIONAL TRAINING LEAFLETS ON DESK EMPTY CLASSROOM DIPLOMATIC AREA DISTRICT, BAHRAIN (MAY 24, 2016) (REUTERS) MANAGING DIRECTOR OF OASIS TRAINING CENTRE, DR. SUZANNE WHITE, STANDING AT KIOSK BANNER READING (English and Arabic): 'OASIS TRAINING CENTRE. AN OASIS FOR LEARNING' WHITE SEATED ON TELEPHONE (SOUNDBITE) (English) MANAGING DIRECTOR OF OASIS TRAINING CENTRE, DR. SUZANNE WHITE, SAYING: "But actually as I've gone out and spoken to clients, I found out that the shift in funding from the Ministry of Labour to Tamkeen, has meant that many companies are not training, primarily because of the increase that they have to give their staff." ABU-SAIBA, BAHRAIN (MAY 24, 2016) (REUTERS) VARIOUS OF EMPTY CLASSROOMS AT OASIS TRAINING CENTRE FRONT DESK AT CENTRE EXTERIOR OF TRAINING CENTRE BUILDING
  • Embargoed: 9th June 2016 11:22
  • Keywords: Bahrain economy business training institutes trainding industry
  • Location: SALMABAD, ABU-SAIBA, AND DIPLOMATIC AREA DISTRICT, BAHRAIN
  • City: SALMABAD, ABU-SAIBA, AND DIPLOMATIC AREA DISTRICT, BAHRAIN
  • Country: Bahrain
  • Topics: Economic Events
  • Reuters ID: LVA0014JAZZH1
  • Aspect Ratio: 16:9
  • Story Text:Almost all of Bahrain's training centres and institutes are facing closure having been out of business for several months, according to an industry expert.
    President of the Bahrain Society of the Private Training Institutes (BSPTI), Dr. Ahmed Al Obaidli, said that 95 percent of all business training centres are on the verge of closing down.
    "I can confirm that 95 percent of the training institutes, training centres in Bahrain are not doing any single business, they are collapsing, they are dying," he said, speaking from his offices in Salmabad south of Manama.
    According to the BSPTI, the rapid decline started in September 2015, when a royal decree saw Tamkeen, a semi-government body, take over from the Bahrain Ministry of Labour and Social Development to oversee the industry.
    Funding for institutes became harder to obtain and a new scheme, which has come under heavy criticism from the industry, was introduced.
    Tamkeen's Training and Wage Support Scheme (TWS) made it compulsory for companies to increase their staff's wages during training.
    Many companies did not register for the scheme, preferring not to increase their costs for training, and classrooms across the country have remained empty for months.
    Al Obaidi added that during this time, training centres still had to maintain their overheads and running costs despite having little income, making matters worse.
    "Since all of the 85 training centres are sitting in a very luxurious training centres because of the quality assurance requirement, so we are paying a fixed bill not less than 10 thousand to 15 thousand dinars a month without any income, so this is the problem. All our saving is gone, there is no prospects coming, there is no lets say hints of business in the sky for us," he said.
    A training centre in Abu-Saiba, west of the capital Manama, was one of the centres suffering the recent decline in business.
    Managing director Dr. Suzanne White agreed that the new TWS scheme meant fewer companies were training their staff.
    "I found out that the shift in funding from Ministry of Labour to Tamkeen, has meant that many companies are not training, primarily because of the increase that they have to give their staff," she said.
    Training institutes are now looking to the government to help find a solution to the crisis surrounding their industry and have appealed directly to Bahrain Prime Minister Sheikh Khalifa bin Salman al Khalifa for help.
    Like other Gulf Arab oil states, low crude oil prices have put heavy pressure on state finances and Bahrain is now trying to boost revenues from tourism, light manufacturing and services industries to reduce its heavy reliance on oil exports.
    But in austere economic times, it may be more challenging to persuade private businesses to allocate resources to staff training and revive the country's training industry.
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