BAHRAIN
Produced by The Worldfolio who take full responsibility
200 More Years
of engageMent with
the United KingdoM
AFTER cElEbRATing 200 yEARs oF oFFiciAl FRiEndship lAsT yEAR, bAhRAin And ThE UK ARE woRKing TowARds dEEpER coopERATion, FRom TRAdE And invEsTmEnT To sEcURiTy
And dEFEncE. momEnTUm is bUilding As ThE Two nATions woRK in concERT To shoUldER ThEiR shAREd chAllEngEs And ExploRE nEw oppoRTUniTiEs
T
he Bahraini-British re-
lationship is one of the
oldest and closest in
the Gulf, spanning two cen-
turies of mutually supportive
ties in trade, military coop-
eration and investment.Treaty
relations date back to 1816,
when the then British political
resident William Bruce signed
a pact with Sheikh Al Khalifa
guaranteeing British neutral-
ity in the ongoing conflict
between Bahrain and Oman.
This established formal rela-
tions between both countries
and was followed in 1861 with
a Perpetual Truce of Peace
and Friendship, which ce-
mented Britains diplomatic,
political and economic links
with the Gulf kingdom.
Since then, each nation has
been an important part of the
others development across
economic, political, and cul-
tural spheres and, while re-
flecting on past achievements
in a multitude of bilateral
meetings, their leaders are
looking forward to what can
be achieved in the next two
centuries of partnership.
Bahraini-British relations
of more than 200 years are
deep-rooted and character-
ised by their specificity due
to the strong cooperation,
outstanding relations and
mutual understanding and
coordination regarding vari-
ous regional and international
issues, said HM King Hamad
bin Isa Al Khalifa during a bi-
lateral meeting with British
Deputy Foreign Secretary
Sir Alan Duncan.
Speaking on board the HMS
Defender at the start of the
bicentenary celebrations,
First Deputy Prime Minister
Crown Prince Salman bin
Hamad Al Khalifa said that the
British-Bahraini friendship is
a relationship committed to
mutual respect and a shared
pursuit of safety, stability and
prosperity for our peoples,
adding that It is particularly
apt that we begin our celebra-
tions aboard the impressive
HMS Defender, as strong na-
val ties have underpinned our
200-year relationship.
These naval ties are once
again in focus following the
November 2016 opening of
the 30 million British HMS
Juffair Naval Base in Manama.
Inaugurated by the Prince of
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Wales, it is the first major
naval base opened by Britain
in the east of the Suez Canal
since 1971, and represents
a recognition by the UK of
the regions growing global
importance. Indeed, the
Maritime Component Com-
mand (UKMCC) houses the
largest concentration of the
Royal Navy outside British
waters, with over a dozen
ships and 1,200 personnel,
which will work to further the
two countries joint agenda
in combatting terrorism, ex-
tremism and intolerance in
the region.
During the December 2016
Gulf Cooperation Council,
British Prime Minister The-
resa May reiterated the in-
creasing importance of ties
between the UK and the Gulf
States.I think that Gulf pros-
perity and Gulf security is our
prosperity and security, she
said, adding that the Gulf is a
special market for the United
KingdomI am determined
that we should do everything
possible to build on this and
elevate our trade and invest-
ment to an even more ambi-
tious level.
But it is not just Bahrains
strategic geographic position
which makes it the UKs part-
ner of choice.The Kingdoms
pro-business regulatory en-
vironment and initiatives for
facilitating inward investment
TUESDAY, MARCH 28, 2017
Queen elizabeth ii at the races in
Bahrain in 1979 (inset). British Prime
Minister theresa May (left) visited
Bahrain in december 2016,
following the Prince of wales
trip to the Kingdom a month
prior (bottom, left)
and foreign businesses have tutional, says Simon Martin,
drawn numerous major UK British ambassador to Bah-
firms to its shores, such as rain, pointing to recent invest-
HSBC, National Express and ments into companies such as
Standard Chartered. Envirogen in the UK, and suc-
British investments are al- cessful Bahraini ownership in
ways welcome in the Kingdom companies like McLaren.
of Bahrain amid its available Bahraini investment also
opportunities and promising helps London to achieve its
sectors for that, said Bahraini aim to remain the worlds
Prime Minister Prince Khalifa leading financial centre post-
bin Salman Al Khalifa. Brexit. It is clear that Bah-
[Bahrain] has a very pro- raini businesses do realize the
business regulatory environ- importance of the UK. If the
ment, which should encour- confidence in London as the
age numerous major UK firms hub of Gulf business in Europe
to set themselves up in the was not so strong, we would
kingdom, says Khalid Rashid be seeing people looking to
Al Zayani OBE, Chairman of take the opportunity to move
the Bahrain British Business elsewhere. But we are see-
Forum. Formed in 1995, the ing quite the opposite, says
Forum promotes Bahrain as Ambassador Martin.
the regional centre to con- Commerce between the
duct business throughout the two kingdoms is growing at
Middle East.UK firms should breakneck speed, with bilat-
not see Bahrain as a single eral trade between Bahrain
market but an entry point for and the UK generating 432
the rest of the GCC, adds Mr million in 2015 alone, an in-
Al Zayani. crease of 35 per cent on the
So far, Bahrain counts previous year. Meanwhile, in
500 British brands, 90 Brit- the political sphere, Britain
ish company branches, and has been arguably the most
350 Bahraini-British business consistent state in support-
partnerships in its banking, ing Bahrains reform process.
accounting, retail, transport, In 2011, former assistant
industry and legal sectors, commissioner of the Met-
but investment flows go the ropolitan Police John Yates,
other way, too. It is hard to travelled to Bahrain to reform
overstate the level of invest- its police force, and in 2012,
ment in the London property the UKs package of techni-
market by Bahraini investors, cal assistance to support
both private as well as insti- reform began. Much of it has
Highland House - 165 The Broadway - Wimbledon, London
focused on building effective
and accountable institutions,
strengthening the rule of law
and police and justice reform.
Beneficiaries of the UKs sup-
port include independent hu-
man rights and oversight insti-
tutions such as the National
Institution of Human Rights,
Ministry of Interior Ombuds-
man, Prisoners and Detain-
ees Rights Commission and
Special Investigations Unit,
which provide independent
oversight of police behaviour
and detention standards.The
Gulf states progressive con-
stitution now enshrines the
freedoms and rights of all
faiths and ethnicities, and Bah-
rain has made great strides in
empowering women.
While British-Bahraini eco-
nomic, political and trade co-
operation continues to grow,
it is the people-to-people ties
between both societies which
make this relationship so
special. Many Bahrainis have
been to the UK to study and
work, and some see the UK
as their second home. The
latest figures that we have
show there are around 14,000
Bahraini students in UK uni-
versities at the moment. I
calculated that roughly one
in 500 of the entire Bahraini
population is currently at uni-
versity in the UK, which is an
extraordinary figure, says
Ambassador Martin. Its not
for and are solely liable for the content.
Email: info@theworldfolio.com.
just about business. We have
about 10,000 British residents
here, which is by far the larg-
est Western expatriate com-
munity. Many of the British
people in Bahrain have lived
here for decades, with their
children brought up and edu-
cated here, and therefore the
British community is woven
into the fabric of Bahrain,
he adds.
These ties bind the two
societies together, facilitating
initiatives in education and
science. For example, the
British Council, which has
had a strong presence in the
Kingdom since 1959, counts
2,000 students per term at
its Manama teaching centre,
and holds community events
to encourage reading. Mean-
while, the British College of
Bahrain, the result of a part-
nership with the countrys
royal family and the University
of Salford expects to enrol
a first cohort of up to 100
students in September 2017.
Today, British-educated Bah-
rainis are making their mark.
The new mosque in Galali
has a female designer, which
is quite unusual in terms of
mosque designs anywhere in
the world, says Ambassador
Martin. She graduated from
the Princes School of Tradi-
tional Art in London, founded
by HRH The Prince of Wales,
and was also inspired by the
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bahraini-british relations
of more than 200 years are
deep-rooted and characterised
by their specificity due to the
strong cooperation, outstanding
relations and mutual
understanding
hM King haMad Bin isa aL KhaLifa
Prince of Wales himself when Secretary Boris Johnson told
it came to the design. the gathered audience that
For the ambassador, the Britain has been part of your
closeness between the UK story for the last 200 years,
and Bahrain is rarely matched and we will be with you for
elsewhere. To many Bahrai- the centuries to come. Today,
nis, the UK is more than just as the two countries respond
a study or holiday destina- to the fast-changing global
tion it is a home away from landscape, with the UK map-
home. And for many Britons ping out its new post-Brexit,
born and raised here over international trade and in-
generations, Bahrain is equally vestment trajectory; Bahrain
home. He also believes that building on its longstanding
there is direct value to be had status as the gateway to the
from the quality of the ties be- GCCs rapidly expanding
tween the Bahraini and British market; and the two nations
royal families, as evidenced by working in concert to combat
initiatives such as the Prince the extremist and terrorist
of Wales Foundation for threats that are felt particu-
Building Community, which is larly strongly across the Gulf
contributing to changing the States, a window of oppor-
way in which public housing tunity has opened for these
is designed in Bahrain. historical partners to engage
Speaking in Manama in De- in an ever closer relationship
cember 2016, British Foreign for the centuries to come.
 2 BAHRAIN
Reforms to shift role of
public sector from driver
of growth to regulator
BahRain undeRgoes RefoRms that will allow the pRivate sectoR to Become the
main dRiveR of economic gRowth and employment
I W
n recent years, Bahrains
economic reforms hailed
as the most ambitious in the
Gulf have delivered higher
standards of living, reduced
the economys dependence
on oil, and laid the foundations
for the Kingdoms sustainable
development plan. As a result,
the country today boasts a
fast-growing financial sector
and an increasingly diversified
economy.
But as it enters its next
phase of growth, the Kingdom
still has work to do to make
sure every Bahraini has the
opportunity to reap the re-
wards of its canny economic
policy, and the Bahraini gov-
ernment, led by Prime Minis-
ter Prince Khalifa bin Salman
Al Khalifa, is now working to
implement new regulatory
frameworks which encour-
age investment and inclusive
growth across key economic
sectors.
These include reforming
the role of the public sector
from the central driver of
growth to one that serves as
a regulator and active partner
with the private sector, sup-
porting innovation to stimu-
late competitiveness, and
investing in citizens futures
to further improve their liv-
ing standards, says the prime
minister.
A national Government Fo-
rum, launched in September
last year, plans to do exactly
that. Centred on Bahrains
continued efforts to deliver
a modern and dynamic public
sector, it brings together min-
isters and officials from across
government to explore ways
in which even greater sus-
tainable diversification and
economic prosperity can be
delivered.
The interior ministry, the
Ministry of Transportation
and Communication and the
Central Bank of Bahrain were
among some of the public-
sector entities praised dur-
ing the inaugural forum for
their contributions to the
effective and efficient devel-
opment of state institutions,
and the Bahraini government
now aims to ramp up public
service provision to support
the Kingdoms future growth
further both in economic
and social terms.
To ensure that discussion
outcomes translate into ac-
tion, the Civil Service Bureau,
which supervises human re-
sources across government
entities and is tasked with
amendments to institutions, unprecedented
step to protect human rights
Recent Revisions to the law on the national institution foR human Rights have positioned it as a Role model acRoss the gcc and the aRaB woRld, By gRanting
wideR poweRs and cleaR legal ResponsiBilities to impRove the human Rights situation in the countRy
B
ahrains journey toward
greater human rights
protections began in
1999, when King Hamad bin
Isa Al Khalifa ascended to the
throne, implementing major
changes towards fostering
democracy, entrenching the
foundations of the state of law,
and building an integrated leg-
islative and legal system.
In 2009, the establishment
of the National Institution
for Human Rights (NIHR),
an independent body tasked
with monitoring human rights
conditions in Bahrain, was a
further step toward cement-
ing Bahrains leading position
in the GCC in areas such as
religious tolerance and pro-
gressive gender norms. Bah-
rain will remain the country
of moderation and openness
to the world in its cultural and
religious diversity, said King
Hamad bin Isa Al Khalifa.
Following the uprising of
2011, which came about as
part of the region-wide Arab
Spring, King Hamad set up the
Bahrain Independent Com-
mission of Inquiry (BICI) to
these include reforming the
role of the public sector from
the central driver of growth
to one that serves as a regula-
tor and active partner with
the private sector, supporting
innovation to stimulate com-
petitiveness, and investing
in citizens futures to further
improve their living standards
HRH Prince Khalifa bin Salman Al Khalifa,
Prime Minister
raising production efficiency
in the public sector, has begun
a follow-up project to develop
and improve service provision
capabilities.
The Kingdom of Bah-
rain is resolved to continue
its pioneering development
progress towards achieving
the welfare of its citizens
and coming generations, says
King Hamad bin Isa Al Khalifa.
In practice, this means care-
fully calibrating public sector
reforms to the new economic
reality in formerly oil-reliant
Bahrain, further developing
the economy and diversifying
revenues in light of the fiscal
challenges the region faces
due to the global decline in
oil prices.If the development
programmes and plans do not
succeed in improving citizens
lives and the quality of the
services provided for them,
they have to be modified and
re-directed towards meeting
the citizens expectations and
fulfilling the aspirations of His
Majesty King Hamad bin Isa
Al Khalifa for ensuring pros-
perous lives for all Bahrainis,
look into the incidents that
occurred during the period
of unrest, setting it a tight
timetable to complete its task.
BICI, made up of human rights
specialists and international ju-
rists, investigated and reported
on human rights violations by
the security forces, including
unlawful killings and torture.
The report it produced said
that measures were needed
to address the serious human
rights violations committed
during the 2011 uprising and
hold those suspected to be
responsible to account.
In response, and to wide-
spread international approval,
the King accepted the BICIs
findings, committing the gov-
ernment to full implementa-
tion of its recommendations.
The countrys penal code was
amended to bring its definition
of torture in line with that of
the UN Convention against
Torture, a code of conduct
for police officers was devel-
oped, a new law was enacted
to regulate the treatment of
prisoners and detainees, and
new mechanisms were put in
points out the prime minister.
Already seen as the freest
economy in the Middle East
it ranks top among MENA
countries in the Index of Eco-
nomic Freedom, published by
The Wall Street Journal and
The Heritage Foundation
Bahrains growth and pros-
perity has come about in large
part as a result of its trans-
parent regulatory system and
ease of doing business, helping
it to attract swathes of foreign
investors.
The government relies on
industrial investment, which
represents one of the viable
tools to diversify the sourc-
es of revenues and generate
jobs, says the prime minis-
ter, adding that the current
economic challenges require
more industrial investments,
as a strategic alternative to
achieve sustainable develop-
ment for the GCC nations.
While economic liberalisa-
tion has meant a gradual re-
duction of state involvement
in running the economy, trans-
lating economic growth into
inclusive, sustainable develop-
place to ensure accountability.
The creation of new institu-
tions represented a new peak
in Bahrains trajectory of hu-
man rights reform.
In 2014,the government took
a further step, by overhauling
the NIHR in order to make
it more effective and to con-
form with the so-called Paris
Principles, which relate to the
status of national institutions.
The Arab Spring started in
2011, however Bahrain started
its progress in 1999 and was by
ment requires a proactive ap-
proach from the public sector.
Therefore, the government
has committed to increasing
employment opportunities
and facilitating an economic
environment conducive to
sustained economic growth,
and is keen to position Bah-
rain as a centre of excellence
for public sector reforms.
The international com-
munity should be properly in-
formed about the Kingdoms
success stories, which reflect
the outstanding ability of the
Bahraini people to achieve
progress within a stimulating
environment, says the prime
minister.
Improving access to op-
portunities and forming
strong institutional struc-
tures, as well as building
human capacities, have been
identified as target areas of
work by the government.
However, it takes a prag-
matic approach to achiev-
ing these goals, recognising
the need to join forces with
the private sector and lev-
erage its expertise through
public-private partnerships.
Indeed, the steady growth
of Bahrains non-oil sector,
which now accounts for
more than 80 per cent of
the Kingdoms thriving econ-
omy,serves to demonstrate
the importance of facilitating
public-private partnerships,
said First Deputy Prime Min-
ister Crown Prince Salman
bin Hamad Al Khalifa, speak-
ing to Bahrain News Agency.
The government is also lev-
eraging upon its international
relationships to improve so-
cial conditions for its growing
middle class, by ensuring the
availability of modern and af-
fordable housing across the
Kingdom. In its current ac-
tion plan, the government has
pledged to deliver an unprec-
edented 25,000 housing units,
and construction has begun
in the southern governorate
on a modern residential area
in collaboration with the
Prince of Wales Foundation
for Building Community.
By fostering opportunities
to allow its citizens to achieve
their aspirations, Bahrains
public sector reforms will en-
able the country to complete
its transformation from an
economy built on oil wealth
to a productive, competitive
and inclusive economy that
raises a broad middle class
of Bahrainis with good living
standards.
human rights are an open
issue; it is not only about deal-
ing with political rights or civ-
il rights, it is about economic
rights, social rights, culture
rights and so forth. tolerance
is part of Bahrains culture
and part of our human rights
Dr Abdulaziz Hassan Abul,
Chairman, National Institution for Human Rights
that time open to everybody.
I dont think anybody in Bah-
rain at that time could imagine
all that has been achieved in
terms of human rights. Human
rights are an open issue; it is
not only about dealing with
political rights or civil rights,
it is about economic rights, so-
cial rights, culture rights and
so forth. Tolerance is part of
Bahrains culture and part of
our human rights, says Dr Ab-
dulaziz Hassan Abul, Chairman
of the NIHR.
vision 2030: at the
forefront of Bahrains
transformation
Kingdom aspiRes to shift fRom an economy Built on oil wealth to a pRoductive, gloBally
competitive economy, all undeR the umBRella of an amBitious vision 2030
ith economic per-
formance over
the last two dec-
ades following a comfortable,
upward trajectory, Bahrain
has prospered.This has come
thanks to strong oil revenues,
a thriving financial sector and
a regional economic boom,
as well as foreign direct in-
vestment pouring into al-
most every economic sector.
Consequently, indicators on
health, social progress and liv-
ing standards have improved
dramatically, with life expec-
tancy climbing from 71.4 years
in 1990 to 75.8 today.
It is easy to become com-
placent given such a conducive
environment to growth. In-
deed, while countries world-
wide have on average raised
their labour productivity by
21 per cent over the past 25
years, Bahrains improvement
has been just 17 per cent. Al-
though the country has been
able to ensure high employ-
ment rates by redistributing
oil revenues and offering citi-
zens jobs in the public sector,
it is low-wage jobs that have
been created, and the island
ingdom is now facing a short-
age of both quality employ-
ment and appropriate skills
as a result.
In 2008, conscious of the
ramifications of allowing this
situation to continue un-
checked, King Hamad bin Isa
Al Khalifa launched the am-
bitious Vision 2030, a devel-
opment programme which
recognised the necessity to
speed up reforms in order to
capitalise on the opportunities
that regional growth offers. It
laid out a blueprint for national
development based on the
guiding principles of sustain-
ability, competitiveness and
fairness in a way that would
ensure that every household in
the country had at least twice
as much disposable income in
real terms by 2030.
Almost a decade later, the
progress made by the nation
is palpable.The Bahraini econ-
omy has grown by 28 per cent
since 2008, while international
investments into the Kingdom
rose threefold from 2009
to 2014. According to First
Deputy Prime Minister,Crown
Prince Salman bin Hamad Al
Khalifa, all of the accomplish-
ments thus far have directly re-
sulted in increasing the average
income of a Bahraini family by
47 per cent since 2008 no
mean feat in the context of a
slowing global economy.
The revamped NIHR now
has a broad mandate to pro-
tect, uphold, develop and pro-
mote human rights, and has the
power to review draft and ex-
isting legislation as well as col-
lect and investigate complaints.
The Kingdom of Bahrain,
through the NIHR, has been
able to reshape its human
rights landscape, says Maria
Khoury, head of the NIHRs
Complaints Monitoring and
Follow-up Committee. I use
the word landscape because
we aspire to shift from an
economy built on oil wealth to
a productive, globally compet-
itive economy, shaped by the
government and driven by a
pioneering private sector an
economy that raises a broad
middle class of Bahrainis who
enjoy good living standards
through increased productiv-
ity and high-wage jobs
HRH Crown Prince Salman bin Hamad Al Khalifa,
First Deputy Prime Minister
The composition of Bah-
rains economy, once dominat-
ed by oil, has become signifi-
cantly more diverse. Standout
performance from the tourism
sector, driven by events such
as the Bahrain Grand Prix and
the nomination of Manama by
UNESCO as Capital of Arab
Culture in 2012, has driven
jobs growth in the hospitality
sector, while small business
growth schemes introduced
by the government as well
as loans made by the Bahrain
Development Bank have cata-
lysed home-grown entrepre-
neurship.
As part of the governments
new role as economic facilita-
tor, state bodies such as the
Telecommunications Regula-
tory Authority have trans-
formed former monopolies
into dynamic clusters. In keep-
ing with Vision 2030s stated
aims of fairness, efforts have
been made to boost economic
inclusion for everyone. For ex-
ample, the Bahrain Business
Incubator Centre, set up by
Bahrain Development Bank in
2003, has since expanded its
the process is not a minor
issue. We have been able to
strengthen awareness, pro-
tection and implement our
overall strategy. We do that
in the NIHR through vari-
ous targeted campaigns, and
through training, establishing
and redefining standards and
protective procedures, she
says, adding that the NIHR
works closely with the police
ombudsman and with NGOs
and legislation either through
the countrys Shura Council or
the parliament.
For Abdulla Ahmed Isa Ald-
erazi,Vice-Chairperson of the
NIHR, humane treatment of
others runs deep in Bahraini
society. If you remember the
Arab-Israeli war in 1948, we
had Jews here, and Bahrainis
gave shelter to the Jewish
families to protect them.They
wouldnt accept that anybody
was harmed; they would pro-
vide them with food and shel-
ter for weeks.
Looking back over the last
decade, he highlights that many
advances have taken place.
Torture is prohibited by the
TUESdAy, MARCH 28, 2017
facilities to build a new incu-
bator specifically for women.
There have, of course, been
challenges, namely the global
economic crisis of 2008/2009
and the regional unrest brought
about by the 2011 Arab Spring.
Bahrains future prosperity
depends on whether it can
change to keep pace with the
world around it. Therefore,
in its National Development
Strategy 2015-2018, the latest
iteration of a regularly updated
action-plan that will turn the
Vision into reality, the Bahraini
government has underscored
the importance of adapting to
the new economic and politi-
cal realities around it to forge
a clear path forward.
We aspire to shift from an
economy built on oil wealth to
a productive, globally competi-
tive economy, shaped by the
government and driven by a
pioneering private sector an
economy that raises a broad
middle class of Bahrainis who
enjoy good living standards
through increased productiv-
ity and high-wage jobs, says
the Crown Prince.
Constitution; there is freedom
of expression and formation of
political societies. In Bahrain,
there are more than 600 civil
societies.There are more than
eight NGOs with relations
only to human rights.Then you
have the political societies and
political rights. Bahrain is the
only country in the region that
has political societies, and is
structured as political parties.
Bahrain is a culturally, eth-
nically, and religiously diverse
country where people live
freely in a tolerant and hos-
pitable environment, adds
Shaikha Mai bint Mohammed
Al Khalifa, President of the
Bahrain Authority For Culture
and Antiquities.
While the UK Foreign and
Commonwealth Office has
lauded Bahrains progress thus
For him, Vision 2030 contin-
ues to inform every aspect of
the Kingdoms path of achiev-
ing prosperity. Speaking dur-
ing his visits to the Majlises of
Shaikh Mohammed bin Khalifa
Al Khalifa of Dubai and the Al
Arayedh family in summer last
year, he highlighted the need
for extensive collaboration be-
tween the public and private
sectors to help accelerate
growth in the face of a difficult
international economic back-
drop, pointing to the recent
enactment of wide-ranging
laws which directly support
the development of the pri-
vate sector.
The principles of Bah-
rains Economic Vision 2030,
sustainability, competitiveness
and fairness, are key pillars of
the countrys next develop-
ment phase. It will guarantee
high-quality opportunity and
prosperity for all, added the
Crown Prince.
Today, every government
agency is working with re-
newed vigour in order to
meet its objectives.This new
drive will help Bahrain meet
Economic Vision 2030s core
goal of long term sustainable
development, said King Ham-
ad bin Isa Al Khalifa, speaking
after the first Government
Forum held in September last
year. Tamkeen, Bahrains na-
tional labour fund, is investing
in improving Bahrainis skills
through training programmes
designed to enhance the com-
petitiveness and prosperity of
local people, and has so far
invested an enormous BHD
800 million (1.7 billion) into
helping 35,000 businesses and
95,000 Bahrainis.
Meanwhile, the Economic
Development Board, the first
port of call for investors to the
country, is encouraging invest-
ment in selected sectors beyond
the financial sector to diversify
non-oil economic growth and
promote export-oriented sec-
tors. We aim to create the
optimum business environ-
ment for Bahrain, to ensure
the country attracts investment
from abroad, as well as encour-
aging the strong development of
home-grown companies, said
the Crown Prince.
With 13 years to go until
Vision 2030s target date, the
country is well on its way to
reaching its stated aim of be-
coming a meritocracy where
hard work and talent are re-
warded with success, trans-
forming it from a regional
pioneer to a global contender.
far, it emphasises that there is
still work to be done, particu-
larly with regard to freedom
of speech and expression and
peaceful assembly. Speaking in
Geneva in March this year, Bah-
rains assistant foreign minister,
Abdullah bin Faisal bin Jabr Al
Dossari, pointed out that Bah-
rain was making progress in
the face of substantial chal-
lenges including foreign in-
terference and increasing acts
of violence, terrorism and vi-
cious extremism.
Today, with a focus on build-
ing effective and accountable
institutions while encourag-
ing moderate voices to take a
greater role within civil society,
the two countries continue to
work closely to build on Bah-
rains progress towards meet-
ing its human rights obligations.
 3 BAHRAIN
diversification efforts propel non-oil sector,
which now accounts for more than 80% of Gdp
Bahrains coMMitMent to diversifyinG its econoMy has Been fundaMental in MakinG the country resilient aGainst the challenGes caused By the drop in oil prices
A
s the first Gulf state
to discover oil in 1932,
Bahrains fortunes have
long been tied to those of
hydrocarbons. But with lim-
ited reserves compared to its
neighbours, it also grasped the
need to diversify its economy
beyond the black stuff far ear-
lier than most.
Bahrain is a different story
in comparison to other GCC
countries that are still heavily
reliant on the oil sector for
GDP contribution, says Zayed
R. Alzayani, Minister of Indus-
try, Commerce and Tourism.
We are the most diversified
economy in the region.
Developing the non-oil
sector has been a government
priority for decades and much
of the growth in this segment
has come down to creating
a business-friendly environ-
ment.
With oil prices touching
multi-year lows, the govern-
ments need to spur invest-
ment into non-oil sectors is
more pressing than ever. By
bringing in a raft of measures
to make life easier for busi-
nesses, Bahraini officials hope
to accelerate non-oil sector
activity to minimise any ex-
ternal shocks from the volatile
commodity.In commerce, we
overhauled the company reg-
istration process, changing the
company registration laws.We
removed minimum capital re-
quirements for companies and
the requirement to have mini-
mum qualifications; meaning
for example that you do not
need to be a doctor to open
Modernisation of the healthcare sector to
further attract private investment
Bahrain sees healthcare as paraMount in the evolution to a service-oriented econoMy, and has strived to BecoMe one of the Best healthcare providers in the Gulf reGion
B
oasting one of the oldest
healthcare systems in the
Gulf, Bahrain is today a
regional industry leader hav-
ing made impressive progress
in terms of its infrastructure
and World Health Organisa-
tion (WHO) indicators over
the past three decades.
Since opening the Gulfs first
modern hospital, established
by American missionaries in
1902, the country has gone
onto develop a comprehen-
sive and modernised health
sector, which includes four
state-sponsored hospitals, 14
private institutions and a large
number of clinics and mater-
nity hospitals across the island,
as well as more doctors, nurses
and dentists per population
than any other nation in the
Gulf Cooperation Council
(GCC) area.
Initially modernised through
a large injection of funds during
the 1970s oil boom, Bahrain
has continued to spend heav-
ily on healthcare, consistently
recording one of the regions
highest levels of expenditure
in the sector, resulting in the
country to rank among the
healthiest Gulf nations.
However, with changes of
lifestyle and an ever-growing
population to contend with
(both knock-on effects of Bah-
rains huge economic boom in
recent times), now the govern-
ment is seeking to meet new
challenges, such as higher rates
of non-communicable dis-
a hospital, says Mr. Alzayani,
adding, we started looking at
the individual as financial in-
vestors, rather than technical
experts capable of running the
operations. Whats more, the
ministrys recently-launched
online portal, Sijilat, means a
company eyeing Bahrain can
submit its application to the
government from anywhere in
the world.
Investors will also be guar-
anteed utilities availability,
thanks to the expansion of
the LNG terminal, due by
2019, that the ministry says
will solve electricity supply is-
sues and provide constant and
consistent power for industry.
As well as the LNG termi-
nal, Bahrain has an impressive
pipeline of large-scale infra-
structure projects which will
help other, smaller sectors to
grow. One of these is the 900
million airport modernisation
programme which will go some
way to help the government
reach its target of 15.8 million
inbound tourists by 2018.The
ministry, via the Bahrain Tour-
ism and Exhibition Author-
ity (BTEA), is spearheading a
robust marketing campaign
to promote the sector, which
is already seeing results. We
have witnessed a steady rise in
hotel occupancy rates, which
were at 45 per cent in 2013,
before slowly climbing up to 50
per cent in 2014 and reaching
52 per cent in 2015. Moreover,
the current average expendi-
ture of a tourist is BD120.6
(258.95) and we aim to in-
crease it to BD136 (292.01)
eases like diabetes and heart
disease, higher medical costs
and a greater number of age-
ing inhabitants, by introducing
greater private sector invest-
ment.
While health care offers
opportunities for industry ex-
pansion, it also has a broader
part to play in the Kingdoms
longer-term plans for growth,
explains Bahrains Minister of
Health, Faeqa bint Saeed Al
Salah. With this, the Bahraini
government is implementing
regulatory reforms for the
private sector to take on a
more central role within the
healthcare industry.
As government resources
continue to be directed to-
wards other sectors, private
investment in health care pro-
the next three years, says
Minister Alzayani.
To drive export activ-
ity among manufacturers, the
ministry has teamed up with
the Economic Development
Board (EDB),Tamkeen a na-
tional organisation tasked with
developing the private sector
and Bahrain Development
Bank (BDI) to create an ex-
port development centre. In
addition, the government has
implemented a range of meas-
ures to cut the time to export
goods to Saudi Arabia via the
King Fahd Causeway.Expand-
ing exports is a strategic ne-
cessity for our government
and part of an essential busi-
ness strategy for the Bahraini
private sector. Exports will
boost the economic sector
and give products of Bahraini
companies more exposure in
global markets. We want to
change our youth from job
seekers to job providers, says
Minister Alzayani.
For Dr Ebrahim Mohammed
Janahi, Chief Executive of Tam-
keen, the key to developing
and diversifying the economy
is in supporting Bahraini citi-
zens to become employees of
choice and empowering the
private sector, turning into a
key driver of sustainable eco-
nomic development. Thus far,
Tamkeen has launched 60 ini-
tiatives to support more than
38,000 private sector enter-
prises, a whopping 46 per cent
of all active registered com-
panies in the Kingdom. With
Tamkeens help, 55 per cent
of business owners increased
vision is becoming increasingly
more important, stresses the
minister.
Indeed, this is a trend be-
ing seen throughout the Gulf,
where countries like Bahrain
are entering a new phase in
their demographic and eco-
nomic development. Due
to these new demands, the
healthcare sector is likely to
receive the highest volume of
non-oil investment in 2017
across the GCC, according
to a new study by the CFA
Institute, a global association
of investment professionals.
In this context, most GCC
countries are passing reforms
in their health industries, mov-
ing towards a system where
health ministries act solely as
policy makers and regulators
Bahrain
is a differ-
ent story
in com-
parison to
other Gcc
countries
that are
still heavily
reliant on
the oil sec-
tor for Gdp
contribu-
tion
Zayed R. Alzayani,
Minister of Industry,
Commerce and Tourism
While healthcare sector
growth was before mainly
driven by Gcc governments,
we are now seeing an in-
creased participation by pri-
vate players
Dr Mariam Adhbi Al-Jalahma, CEO,
National Health Regulatory Authority
in order to attract greater
private sector participation
to the sector.
In the GCC, given the de-
mand for health care amidst
an ageing population and
prevalence of lifestyle diseas-
es, the healthcare sector is
fast developing into a robust
system, explains Dr Mariam
Adhbi Al-Jalahma, Chief Exec-
utive Officer of the National
Health Regulatory Authority
(NHRA); the body created in
2009 under the governments
Vision 2030 strategy in order
to oversee the liberation of the
healthcare industry.
While healthcare sector
growth was before mainly driv-
en by GCC governments, we
are now seeing an increased
participation by private play-
ers, she continues. With
programs, such as mandatory
insurance (the National Health
Insurance Scheme), there is an
increasing reliance on the pri-
vate healthcare sector to ex-
Mumtakalat By pro-
partners with moting and
investors encourag-
seeking an ing entre-
active invest- preneurial
ment partner spirit, tam-
with a long- keen aims
term perspec- to motivate
tive. We look young Bah-
at investment rainis to in-
opportuni- novate and
ties that are take part in
commercially diversify-
viable ing
Mahmood Hashim Dr Ebrahim Moham-
med Janahi, Chief
Alkooheji, CEO,
Mumtakalat Executive, Tamkeen
First and foremost, we rec-
ommend looking into health
insurance and also specialised
services. Demand for special-
ised centres of excellence
(CoEs) is also growing rapidly
as the burden of disease shifts
from the public sector to the
private sector.
A substantial number of
patients are also seeking
specialised treatment abroad,
explains the NHRA CEO, so
developing more CoEs in
Bahrain would help meet
pand rapidly to create capacity not only local demand but
for their growing markets. also regional.
And so today, numerous It is a unique opportunity
new facilities are planned all that can reduce the need to
over the region, making the travel overseas for treatment.
healthcare sector a vital allo- Developing more CoEs would
cation for many institutional also bring in more medical
investors in their overall in- tourists to Bahrain as well as
vestment strategy. attracting and retaining high-
But what kind of opportu- ly qualified and experienced
nities are there for investors clinical talent.
in Bahrains healthcare sector We are also looking into
specifically? long term rehabilitation cen-
We have genuine interest tres, alternative medicine
from the private sector and facilities (that we recently
they are talking to us about introduced regulatory frame-
which key areas have strong work for), specialised clinics
demand or growth, says Dr for women and children, re-
Al-Jalahma. habilitation facilities, and lots
TUESdAy, MARCH 28, 2017
the number of their Bahraini
employees, says Dr Janahi.
By promoting and encourag-
ing entrepreneurial spirit,Tam-
keen aims to motivate young
Bahrainis to innovate and take
part in diversifying the private
sector while creating new job
opportunities, he adds.
While these institutions
work hard to broaden eco-
nomic activity within Bahrain,
the Kingdoms investment arm,
Mumtalakat, is playing its own
role in boosting the non-oil
sector. Sovereign wealth
funds in the GCC have been
pivotal in the diversification
efforts of regional govern-
ments. In fact, you find very
few funds investing in the oil
sector. Rather, they have been
investing regionally or interna-
tionally in a variety of sectors
away from oil and gas, says
Mahmood Hashim Alkooheji,
Mumtakalats chief executive
officer. This allows for two
forms of diversification: geo-
graphical diversification and
sector diversification.
Strategic investments by
Mumtakalat have had a major
impact on the Bahraini econ-
omy. For example, in 2008 the
sovereign wealth fund took
ownership of Aluminium
Bahrain (ALBA) one of the
largest aluminium smelters in
the world and an industrial
powerhouse that generates
millions in export revenue
for the Kingdom. It put ALBA
through a restructuring pro-
cess that enabled a successful
IPO on both the London and
Bahrain stock exchanges in
more, outlines Dr Al-Jalahma.
Bahrain should be a re-
gional hub, being geographi-
cally well positioned and hav-
ing strong human resources,
we should be seen as a centre
that can serve the rest of the
region.
National Health
Insurance Scheme
Bahrains proposed National
Health Insurance Scheme, as
highlighted by Dr Al-Jalahma,
will be particularly trans-
formative for the industry.
Expected to be implemented
by the beginning of 2019, the
programme will not only re-
quire introducing insurance
plans, but overhauling the
whole healthcare system.
It needs to happen very
gradually, by building confi-
dence and introducing trust-
worthy independent bodies
and so on, affirms Dr Al-
Jalahma, and that includes the
NHRA itself, she says.
With the upcoming plans
to introduce the National
Health Insurance Scheme,
NHRA will play a key role in
accommodating new entrants
2010.Ten per cent of the com-
panys stock is now publically
owned. Another key example
is Gulf Air, which reduced
losses by 62 per cent thanks
to a restructuring programme
implemented by Mumtakalat
last year.
Mumtakalat partners with
companies and investors seek-
ing an active investment part-
ner with a long-term perspec-
tive. We look at investment
opportunities that are com-
mercially viable. Mumtalakats
typical approach to such in-
vestments is to establish a sig-
nificant minority interest in the
equity of the company and to
secure board representation
and appropriate shareholder
rights, says Mr. Alkooheji.
Today, the myriad of govern-
ment initiatives to diversify the
economy are bearing fruit.
We are proud of what has
been achieved during 2016.
Our success in doubling the
investments during last year
comes as a result of unify-
ing our efforts with various
government bodies to ensure
Bahrain is truly business-
friendly, says CEO of EDB,
Khalid Al Rumaihi, who points
out five priority sectors for
investors: financial services,
logistics, tourism, manufac-
turing and ICT.
We now believe we have
competitive positioning and
good value proposition in
these five identified sectors
that would allow us to reach
the kind of volumes we are
aspiring for (around $500
million).
into the market, and will be a
window of transparency for
the sector.
The introduction of the
scheme involves two stages.
The first phase, which began
last year, was to study the
health insurance industry.
This included a comprehen-
sive study by the World Bank
on the prevailing situation and
the options available to set up
the health insurance system,
based on international best
practices.An operational plan
will then be selected, involv-
ing the formation of working
groups and workshops with
the participation of stake-
holders.
The second phase involves
drafting a health insurance
law in coordination with dif-
ferent government agencies,
and collecting feedback from
stakeholders. While the gov-
ernment will fund the con-
tributions for all Bahrainis
towards the mandatory basic
health insurance plan, employ-
ers will do so for expatriate
residents. In addition, a Na-
tional Health Insurance fund
will be set up.
 4 BAHRAIN TUESdAy, MARCH 28, 2017

Regional leader backed by 40 years of

banking tradition, with a sterling reputation
for its regulatory environment
As the leAding finAnciAl seRvices cen- Noteworthy of the Bah-
raini situation is the large cash
tRe in the gulf, BAhRAin hAs pRoved liquidity and strong capital
reserves possessed by our
to Be Resilient in the fAce of liquidity
banks.
chAllenges posed By low oil pRices And As in the rest of the region,
Bahraini banks had liquidity
AusteRity, with RepoRted totAl BAnking issues in 2015 when the full
effects of the oil price crisis
Assets ReAching ARound 157 Billion As were felt. However, accord-
of septemBeR 2016 ing to the latest quarterly
reports all institutions are
making good progress and
ceived and accepted as invest-
ment professionals.
Indeed, in a region where
expatriates are the dominant
labour force in just about
every sector of the national
economies and governments
are forced to put a cap on
foreign hires, an estimated
65 per cent of Bahrains fi-
nancial industry workforce
is composed of locals and
these highly-trained financial

B
ahrain has enjoyed a
proud record as the
Gulf regions financial
capital over the past 40 years,
leading the Middle East in a
range of sectors from bank-
ing and insurance to asset
management and Sharia-based
Islamic finance with a sterling
reputation for its regulatory
environment, coupled with
political and economic stabil-
ity, a bustling economy and a
perfect place to invest.
The banking industry in
Bahrain has come a long way
over the last few decades,
notes Khalid Hamad, the Ex-
ecutive Director of Banking
Supervision at the Central
Bank of Bahrain (CBB). Seg-
ments such as commercial,
retail, investments and Islamic
banking have made great in-
roads in the industry.
And despite the plunge in
the price of oil which Bahrain
and the Gulf states rely on
for most of their revenue, the
Kingdoms banking industry
goes from strength to strength
with robust growth expected
to continue, not only regard-
ing the size of the sector but
also in providing more Islamic
banking services, the latest fi-
nancial technology, innovative
products and much more.
In order to discern the
strength of the banking indus-
try in Bahrain, it is enough to
point out that the contribu-
tion of the sector to the GDP
of $31.1 billion (25 billion)
amounted to 17 per cent,
which places it second after
the petroleum industry, says
Dr Waheed Al Qassim, the
CEO of the Bahrain Associa-
tion of Banks (BAB).
Volume segment assets
reached $192.7 (157 billion)
last September and out of 404
financial institutions operating
in the Bahraini sector, there
were 113 offering banking
services, including 26 retail
banks, 15 branches of foreign
banks and eight representative
offices like JP Morgan Chase,
HSBC, BNP Paribas, Standard
Chartered and a number of
Middle Eastern banks.
One bank with deep inter-
national connections is Ku-
wait Finance House-Bahrain,
a wholly-owned subsidiary of
KFH-Kuwait which enjoys a
reputation as a performance-
driven, results-oriented insti-
tution combining global in-
vestment strategies with the
provision of popular retail
products and services.
KFH-Bahrain has made
major advances and experi-
volume segment assets
reached $192.7 (157 billion)
last september and out of
404 financial institutions
operating in the Bahraini
sector, there were 113 offer-
ing banking services, includ-
ing 26 retail banks and 15
branches of foreign banks
Dr Waheed Al Qassim, CEO,
Bahrain Association of Banks
enced considerable growth in
recent years.We increasingly bia and other countries with
deal with mobile, regional and
global customers with local
needs focused on Bahrain,
explains KFH-Bahrains Man-
aging Director & CEO Abdul-
hakeem Y. Alkhayyat.
With its growing presence
in Kuwait, Turkey, Malaysia,
Germany, Bahrain, Saudi Ara-
enhancing competitiveness,
expertise in different asset
classes, our group is strate-
gically equipped to cater to
the needs of our diverse cus-
tomer base.
Dr Al Qassim of BAB sees
an expanding role for for-
eign banks with their pres-
the banking industry in
Bahrain has come a long
way over the last few dec-
ades. segments such as
commercial, retail, invest-
ments and islamic banking
have made great inroads in
the industry
Khalid Hamad, Executive Director
of Banking Supervision,
Central Bank of Bahrain
ence raising financing rates,
factors.
boosting knowledge transfer
and providing more opportu-
nities in the sector.
At the same time, there
has been a surge in bank-
ing mergers and acquisitions
taking place among local and
regional banks fuelled by new
tions on repatriation of capi-
House (GFH).
banking standards and other
within the financial sectors
These mergers aim to
strengthen Bahrains bank-
ing sector and increase its
ability to compete on a re-
gional level, especially with
the trend in mergers among
small and medium-sized
banks, he explains.
the country remains an at-
tractive foreign investment
destination.
This is due not only to the
banking system but also to the
countrys pride of place as the
Gulfs most liberal market with
free movement of capital, 100
per cent foreign ownership,
no corporate taxes or restric-
tal, profits or dividends and a
well-established and solid legal
framework that matches inter-
national best practice.
Because of the strong
regulatory framework in Bah-
rain thanks to the CBB, the
independence and the qual-
ity of the legal system here,
investors find the Kingdom a
safe destination for their in-
vestments, says Hisham Al
Rayes, CEO of Gulf Finance
In addition, Bahrain is ad-
vanced in terms of its human
capital, qualified individuals
who serve at various levels
across different levels with
organisations, he adds.
This had been reflected in
our institutions own success
as we understand the culture
of the region and hence the
Bahrainis, including those
from GFH, are very well re-
experts are eagerly snapped
up by institutions in the sec-
tor, both private and public,
throughout the region.
And this human element
in banking practices extends
to helping Bahrainis not only
prosper as employees but to
also enjoy such basic needs
as housing, as in the case of
Eskan Bank which works with
the government to finance
homes for citizens, accord-
ing to General Manager Dr
Khalid Abdulla.
Our bank has been in-
strumental in developing and
shaping the evolving Bahraini
mortgage market over the
past five decades and our
top priority is to help deliv-
er homes to Bahraini citizens
which are comfortable to live
in, economically maintained
and attractively priced, he
says, citing this as yet another
way for the banking sector to
work with the public sector
for the benefit of all.
According to BABs Dr Al
Qassim, local banks will be
further involved in major pro-
jects, not just funding social
projects like housing but also
things like energy projects.All
of this opens up opportuni-
ties for our banks to work,
achieve growth and profit.
 5 BAHRAIN TUESdAy, MARCH 28, 2017

Bahrains Islamic finance

sector sets the tone
for the rest of the world
WIth one of the Worlds longest tradItIons In IslamIc BankIng and a dIverse offerIng of retaIl and Wholesale sharIa-
complIant lenders, BahraIn Is seen as a leadIng centre of one of the fastest-groWIng gloBal fInancIal segments

I
slamic finance, a concept
largely unknown in the West
just a few decades ago, is the
base for the rapidly expanding
global Islamic economy which
experts predict will surge in
value to a staggering $5.8
trillion before the end of the
decade.
Experts predict this will
be fuelled by a surge in the
number of Muslims who are
expected to reach 2.8 billion
people by 2050, double the
average global population
growth, to account for nearly
a third of the worlds total in-
habitants.
If current trends in the Is-
lamic economy are anything
to go by, more and more
Muslims, from Morocco in
the west to Indonesia in the
east, will insist on using Is-
lamic financial institutions and
services for their banking, in-
surance, securities and other
financial needs. And with its
long and respected experi-
ence in this sector, Bahrain
will remain a leading and
highly trusted player thanks
to a number of contributing
factors, bankers say.
Bahrain has ranked first
in the world in terms of gov-
ernance due to the environ-
ment of regulatory, legislation,
Islamic finance institutes law
and Islamic asset manage-
ment, explains Bahrain As-
sociation of Banks CEO Dr
Waheed Al Qassim.
Among the 113 financial
institutions operating here,
there are 25 Islamic banks
with total assets of almost
london is one of the most important and
significant world financial centres and its
links with Bahraini institutions means that
we both have contributed jointly to the
growth of the Islamic finance segment of
the industry
Dr Khalid Abdulla, General Manager, Eskan Bank
$26 billion (21 billion), or
13 percent of the Kingdoms
total banking assets.
According to the Interna-
tional Monetary Fund, Islamic
finance is the provision of
financial services in accord-
ance with Sharia Islamic law,
principles and rules, Islamic
finance rejects common prac-
tices in Western finance such
as interest, risky investments
or activities considered harm-
ful to the public good.
Instead, the IMF says,the
parties must share the risks
and rewards of a business
transaction and the transac-
tion should have a real eco-
nomic purpose without undue
speculation, and not involve
exploitation of either party.
One of the principal objec-
tives of Islamic financial insti-
tutions is to be a key pillar
for developing economies and
to be a major contributor to
society, says Abdulhakeem Y.
Alkhayyat, the Managing Di-
rector and CEO of Kuwait
Finance House-Bahrain.
Its not purely about the
money. A traditional bank
makes revenue from borrow-
ing money from its clients and
then lending it with an interest
rate to make a profit. In Islam-
ic banking thats not allowed
so for example under Islamic
mortgage finance, the bank
shares with the customer in
purchasing a property so they
become joint owners.
In order to own the entire
property, the customer then
purchases the banks share
over time and also pays the
rent for using that share and
eventually ends up owning it
all, he explains.
This means that the whole
risk is not carried only by the
customer but also shared by
the lending institution so if
there is a crash in the proper-
ty market, both parties stand
to lose and the bank does not
reclaim the property and de-
mand the borrower pay back
full interest as a conventional
bank would do.
Bahrain has been a centre
of Islamic finance and banking
for decades and its prestige
in this regard is reflected in
the fact that the Kingdom
hosts the International Is-
lamic Financial Market which
sets standards for the global
Islamic financial services sec-
tor with the participation of
foreign government financial
institutions from Dubai, In-
donesia, Malaysia, Kazakhstan, in their customers losing con-
Brunei, Pakistan, Sudan and
others.
The Kingdom is also the
home of the Accounting and
Auditing Organization for Is-
lamic Financial Institutions, a
non-profit that prepares ac-
counting, auditing, governance,
ethics and Sharia standards
for Islamic financial institu-
tions and the industry.
Other such organizations
here include the General
one of the principal ob-
Council for Islamic Banks jectives of Islamic finan-
and Financial Institutions, De-
loittes Islamic Finance Knowl-
cial institutions is to be a
edge Centre and the Islamic key pillar for developing
International Rating Agency.
So, it comes as no surprise
economies and to be a ma-
that more than 30 countries jor contributor to society
have sought Bahrains assis-
tance in setting up their own Abdulhakeem Y. Alkhayyat, Managing Director and
CEO, Kuwait Finance House-Bahrain
Islamic financial structures.
We are at the forefront of
the Islamic finance sector, are
the point of reference around University which highlighted stitutions means that we both
the world and have been for overwhelming evidence that have contributed jointly to the
a very long time, says Yousif a change from Western to growth of the Islamic finance
Abdulla Taqi, the Director and Islamic banking practices in- segment of the industry, ar-
Group CEO of Al Salam Bank cluded a long-term enhance- gues Dr Khalid Abdulla, the
Bahrain. ment in liquidity as well as General Manager of Eskan
It is also important to
remember that when some
other improvements.
With Bahrain as a world
Bank.
Europe has realised the
countries began introducing centre for Islamic finance, the benefits of Islamic instru-
Islamic finance as an alterna-
tive to conventional banking,
countrys strong ties to the
United Kingdom and its global
ments and I believe that this
is an area where we can come
wed been practicing it for financial institutions bode well together combining the over-
decades and it is a key compo-
nent to our competitiveness
for stepped up cooperation as
the sector grows well beyond
all expertise that London can
provide with the insight into
thanks in part to our very its main market in the Middle the Islamic finance market
strong base of human capital. East, bankers say. that Bahrain can contribute.
Conventional banks have I think London is one of This is something that can
taken note of the advantages the most important and signif- work very well for both na-
of Islamic finance, the CEO icant world financial centres tions and our financial ser-
explains. and its links with Bahraini in- vices sectors.
The credit crunch resulted
fidence in the conventional
banking system and as a result
some Western financial insti-
tutions changed into Islamic
banks as the latter were able
to better deal with the after-
math of the crisis, he says.
Mr Taqi points to a re-
cent study by Birmingham

transformation
into regional
fintech leader
BahraIn aspIres to Become the face of InnovatIon In fInance In the mIddle
east and a pIoneer of fInancIal technology (fIntech) In the regIon

A
s a regional leader in
banking and financial
services punching
well above its weight and as
one of the longest-operating
and most admired Islamic fi-
nance hubs on a global scale,
it is no surprise that tiny
Bahrain is planning to take
on its next big challenge in
the sector: becoming a ma-
jor player in financial tech-
nology, or FinTech, in the
coming years.
And it is easy to see why as
FinTech is the emerging dis-
ruptor in the banking and
financial services industry.
Fintech is the future of
finance. Over 1,000 com-
panies with $105 billion in
funding and $870 billion in
market capitalisation are en-
gaged in FinTech activities
globally, a sector expert
told a recent conference
of Central Bank of Bahrain
officials.
Financial technology can
apply to any innovation in
how business is transacted
and the term was once used
to refer to computer tech-
nology applied to the back
offices of banks and other
financial institutions.
But since the advent of
digital technology, FinTech
now covers such once-
futuristic sector activities
as mobile banking, mobile
commodities trading, peer-
to-peer lending, cloud fund-
ing digital wallets, financial
advisory and robo-advisor
sites, all-in-one money man-
agement applications and in-
surance telematics.
Broadly speaking, there
are four FinTech catego-
ries: B2B for banks, B2C
for banks and business cli-
ents, B2C for SMEs and B2C
for retail consumers. With
advances across platforms
these users will become
increasingly and seamlessly
linked.
And Bahrains financial
sector and regulatory bod-
ies are carefully studying
FinTech to ensure that the
country is at the forefront,
both regionally and globally,
of this phenomenon.
Banking is a very regi-
mental industry, Central
Bank of Bahrain Governor
Rasheed Mohammed Al
Maraj told a recent gath-
ering of GCC banking and
finance officials, adding that
Bahrain will introduce state-
of-the-art technology in the
sector.
But in order for Bahrain
to reach its FinTech goal,
experts say there are three
requirements: a regulatory
sandbox, a physical Fin-
Tech hub for entrepreneurs
and the establishment of a
FinTech fund in the King-
dom.
A consortium from Singa-
pore, which is considered a
leader in FinTech operations
in Asia, has been brought in
to advise on the regulatory
sandbox that will enable
FinTech businesses to test
innovative financial services
without facing the costs of
regulatory licensing and will
reduce the time to get their
services to market.
A FinTech hub would
consist of an incubator or
co-working space for start-
ups that will provide entre-
preneurs with a place to
develop and test innovative
ideas and services for the
sector.
Lastly, the fund would
channel access to devel-
opment capital for the en-
trepreneurs operating in
Bahrain.
And bankers in the region
point out that because of
its experience with Sharia
compliant financial services,
Bahrain would be an excel-
there are
three re-
quirements:
a regulatory
sandbox,
a physical
fintech hub
for entre-
preneurs
and the es-
tablishment
of a fintech
fund in the
kingdom
lent choice as an Islamic
FinTech centre as there are
none yet in the Middle East
despite efforts by Qatar and
the UAE.
But there are challenges.
Larger, hidebound financial
institutions can struggle
with the digital-first culture
that is needed for FinTech
innovation, while smaller
operators are not always
able to meet the size, scale
and resource requirements
to compete.
At the same time, con-
sumers are reluctant to
trust their financial re-
sources to start-ups and
are much more comfort-
able dealing with the tried-
and-true larger institutions
which they know.
Bahrain banks, however,
are willing to give FinTech
a go.
The future of banking
will be online and I envi-
sion that in 20 or 30 years
time, deposits will be a thing
of the past and if you want
to compete these new in-
novations are the way to
go, says Kuwait Finance
House-Bahrain Managing
Director & CEO Abdulha-
keem Y. Alkhayyat.
Another banker, Dr Khalid
Abdulla, General Manager of
Eskan Bank, explains that
his institution invests gen-
erously in new technology,
primarily to allow the bank
to handle more customers.
Central Bank of Bahrain
Executive Director for Bank-
ing Supervision, Khalid Ham-
ad, has said new regulations
covering the technology are
under study and should be
introduced this year.
Were heading into a
new era of banking, one
that will transform the
way banks operated and
will usher in a new dawn
for Bahrains financial sec-
tor.And these new rules will
create new revenue for the
government through invest-
ments channelled into the
nascent but fast-growing
FinTech industry.
 6 BAHRAIN TUESdAy, MARCH 28, 2017

developer confidence boosted by

growing demand from retail and tourism
with the construction industry recording 4.5 Per cent year-on-year growth and the infLux of 12.3 miLLion
tourists in 2016, sPurring demand for residentiaL, hosPitaLity and retaiL ProPerty sectors, bahrain boLsters the guLf
rePutation as a reaL estate safe haven for internationaL investors

B
ahrains fast-expanding
population, high spend-
ing power and quality of
life on offer, provide a great
framework for the real es-
tate industry to thrive and
are factors that have seen a
surge in projects, such as the
springing up of new malls,
luxury hospitality offerings
and the recovery of mixed-
use developments previously
put on hold.
A recent surge in tourism,
motivated by a local drive to
further Bahrains attractive-
ness as an exciting, all-en-
compassing destination for
regional and international
visitors, has particularly given
a great boost to the countrys
real estate industry.
Such development comes in
the face of slowing economic
conditions which have ham-
pered the property market in
Bahrain recently. And in the
second half of 2016 there was
a marked stabilisation across
most real estate sectors, a
trend expected to continue
in 2017, according to interna-
tional real estate consultancy,
Cluttons.
The sector is highly asso-
ciated with other industries,
so when it booms you have
another 16 industries fol-
lowing the trend, explains
Aaref Hejres, Chairman of
Bahrain Property Develop-
ment Association (BaPDA),
a non-profit organization
established in 2010 to fos-
ter infrastructure services,
cooperation, fair trade prac-
tices and integrity among its
members, while also provid-
ing a platform for coopera-
tion with the government
authorities in forming best
With rising wages and higher spending forecast alongside the growing tourism revenues, the outlook for the retail sub-sector is broadly positive
practice policies relating to
the industry.
Real Estate (in Bahrain)
started 15 years ago, but has
become more active in the
past 10 years, says Mr Hejres.
We see a lot of development.
And real estate companies
now: previously, there were a
lot of small groups of people
doing different projects, but
now there is a big demand for
real estate in Bahrain backed
by big companies and main
there are promising op-
portunities in bahrain, a lot
of opportunities, which real
estate developers should
take advantage of now
Dr Maher Al Shaer, CEO, Diyar Al Muharraq
banks such as Kuwait Finance
House (KFH), Al Salam Bank
and Ithmaar Bank.
The good thing about
Bahrain, stresses the BaPDA
chairman, is that that projects
in the country are based on
real demand, which makes it
a safe haven for foreign in-
vestors.
We have 24 of the biggest
development companies in
our association. In addition,
there are several invest-
ments coming from Kuwait
and Saudi Arabia, mainly be-
cause there are reasonable
processes and real demand.
We see a lot of progression
in this market, and thats why
we started BaPDA.
On the back of the popula-
tions growing affluence, with
rising wages and higher spend-
ing forecast alongside the grow-
ing tourism revenues, the out-
look for the retail sub-sector is
broadly positive. For instance, a
number of high-profile projects
have been announced recently,
such as five major develop-
ments unveiled by Bahrain Real
Estate Investment (Edamah) in
October 2016.
These include Saada, a 98
million waterfront develop-
ment in Muharraq; a 765 mil-
lion North Hawar eco-friendly
development, a key multi-sto-
rey car park in Adliya, a French-
themed cultural hub (Versaille
Plaza), and IsaTown Retail Strip.
Edamah, the real estate arm
of Bahrain Mumtalakat Hold-
ing Company (Mumtalakat),
affirmed that these projects
would positively impact the
commercial and tourism sec-
tors, and contribute to the
development of the Bahraini
economy.
Furthermore, in February
2017, Bin Faqeeh, a leading
Bahrain-based privately-
owned real estate investment
company, said it would start
delivering 220 million worth
of real estate development
projects in the first quarter
of this year, providing yet
more strong momentum for
the sector.
Meanwhile,reforms aimed at
diversifying the economy away
from oil are likely to continue
benefitting the industrial real
estate sector, with infrastruc-
ture improvements paving the
way for future developments
in strategic locations.
However, perhaps the big-
gest challenge facing the Bah-
raini real estate industry going
forward is in the residential
sub-sector, with the country
facing a huge shortfall in social
housing capacity.
Although the government
has pledged to provide thou-
sands of new units for its
citizens, the housing backlog
stands at over 54,000 applica-
tions, and long-term demand
is expected to outstrip supply,
especially as the sector works
to surmount infrastructure
and land allocation limitations.
While state-funded hous-
ing projects are likely to
continue to drive growth in
the Kingdoms construction
industry (in December 2012
the government announced
that it would allocate up to
BD580 million (1.2 billion)
between the public and the
private sector, explains Mr
there is a Hejres. This is for the first
big demand time in Bahrain, and its open
for everybody. The process is
for real es- open to all developers, who
can go to the ministry and
tate in bah- apply for these public-private
rain backed partnerships.
One of the largest social and
by big affordable housing construc-
companies tion contracts awarded to a
private real estate company is
and main the Diyar Al Muharraq mixed-
banks such use project, a vast option of
residential projects that offers
as Kuwait opportunities for a number of
finance different social groups.
The project involves over
house 3,000 houses which include
(Kfh), al social and affordable hous-
ing, explains Dr Maher Al
salam bank Shaer, CEO of Diyar Al Mu-
and ith- harraq.The social housing will
be controlled and distributed
maar bank to Bahrainis by the Ministry
of Housing, and the affordable
Aaref Hejres,
Chairman, Bahrain
will be targeted to locals not
Property eligible for social housing.
Development Our idea as one of the
Association main developers in Bahrain
is to deliver 40,000 to 50,000
houses within the next five
for 16,000 new homes in a bid years, he says, with the first
to ease the affordable hous- phase of the project scheduled
ing shortfall), the sector has for completion in February
also been opened up to the 2018.
private sector with the gov- On the Bahraini real estate
ernment signing a multitude of sector in general, Dr Al Shaer
construction contracts within who highlights entertainment
the social housing segment in and attractions, along with
recent years. social and affordable housing
Previously, the government stresses,There are promis-
was 100 per cent responsible ing opportunities in Bahrain, a
for providing social housing, lot of opportunities, which real
but in recent years we man- estate developers should take
aged to create a good marriage advantage of now.

Poised to become a major aviation hub

Large-scaLe investments by bahrain internationaL airPort and nationaL fLag carrier guLf air wiLL
Position bahrain as a major aviation hub in the coming years

L
ast year, ground work
was laid for infrastruc-
ture Bahrain hopes will
help its position as a regional
aviation hub take flight. The
900 million expansion of the
Bahrain International Airport
(BIA) will increase capacity
to 14 million passengers and
enable the airport to handle
the next generation of mod-
ern fleets coming on stream.
The expansion not only
targets the modernisation
of the airports aviation in-
frastructure, but will also up-
grade ancillary services and
facilities to ensure they are in
line with leading international
standards.
By 2019, I can assure you
that this will be one of the
most efficient airports in the
region. BAC has been named
one of the most punctual air-
ports in the world by OAG,
and we have huge potential
to take this achievement to
another level, says Mohamed
Yousif Al Binfalah, CEO of
Bahrain Airport Company
(BAC).
Bahrain is already a region-
al aviation leader. As Mr Al-
Binfalah states, BIA ranked
among the most punctual
airports in the Middle East
and ninth globally among
medium-sized aviation ter-
minals in a report issued by
UK-based aviation analysts
OAG earlier this year, which
showed that more than 85
per cent of flights left and
arrived BIA in less than 15
minutes of their scheduled
time. No other airport in the
Middle East made it to the
top 20 in any of the catego-
ries. Bahrains national car-
rier, Gulf Air, ranked ninth of
the 10 most punctual airlines
in Europe, Middle East and
Africa, while none of the oth-
er Middle East-based airlines
made it to any of the lists.
While the improvements
to BIA will most certainly
boost its already strong com-
petitiveness, hopes are that it
will also act as a catalyst for
wider socio-economic devel-
opment. The BIA project will
strengthen Bahrains trans-
port connectivity with other
destinations in the region,
and complement a $10 bil-
lion investment in road and
rail links to Saudi Arabia. A
new causeway to Saudi Ara-
bia, scheduled for completion
in 2022, will connect Bahrain
to the rest of the $200 billion
GCC rail network.
Logistics will play a key role,
then, in Bahrains economic
development, says Mr Al-
Binfalah. BIA is estimated to
increase the air cargo volumes
to one million metric tonnes
per year once the expansion
project is completed in 2020.
Now, more than ever, we are
clear on what we want to do
with logistics and cargo. The
airport is a platform for de-
velopment, it is an enabler. It
needs partners, and to posi-
tion itself to attract FDI that
can also leverage the liberal
economic environment here,
as well as our ICT infrastruc-
ture and ease of setting up
business, he says.
We realize that we are a
small market but we want to
be an efficient small market.
To do that, the airport must
have the right infrastructure
to allow somebody to plug
and play, providing utilities
and licensing. I think we are
creating a value proposition
that is quite competitive.
Gulf Air to benefit
It goes without saying that
BIAs expansion will provide
a major boost to Gulf Air.
Ongoing restructuring has
led to steady improvements
for the airline recently after
several years of heavy losses,
which reached $559 million in
2011. Once owned by four of
the GCC states, Gulf Air had
been struggling to perform
since Oman, Abu Dhabi and
Qatar left to form their own
national carriers. CEO Maher
Salman Al Musallam, however,
has forged a path towards the
airlines first profit in two dec-
ades, thanks in part to the ad-
dition of high-value routes to
Europe, India and the Middle
East, and a strategic shift away
from low-value transit traffic.
By 2014, he had brought the
airline nearly back in the black
and Gulf Air was posting pas-
senger revenues up 15.4 per
cent year-on-year.
bahrains role as a stra-
Now, the national carrier is tegic aviation hub in the
poised to see a major increase
in capacity. It has purchased
mena region is reinforced
around 6 billion worth of by its deep-rooted aviation
new Airbus and Boeing air-
craft, including 12 A320 neo
heritage and this is deeply
and 17 A321 neo jets and 16 linked to gulf airs history
787-9 Dreamliners to add to its
existing fleet of 28 Airbus jets.
and heritage
The first planes in the new fleet Maher Salman Al Musallam, CEO, Gulf Air
are expected to arrive in 2018.
A 10-year strategic and
holistic plan for the airline is
being implemented that will
shape Gulf Airs future trajec-
tory, incorporating planned fu-
ture fleet and network growth
and schedule enhancement
with greater frequencies to
select destinations, explains
Mr Al Musallam. Our fleet
was a primary focal point in
our strategy. Gulf Air serves all
its destinations with a combi-
nation wide and narrow body
fleet, connecting Bahrain
and the GCC region to the
world.The new aircraft arrival
will herald a new era for Gulf
Air and we are preparing for
this and looking forward to a
promising future.
BIAs expansion will serve
Gulf Air and the aviation sec-
tor as a whole, adds the CEO.
The ease, efficiency and con- by 2019, i can assure you
venience of procedures within
the airport make transit that this will be one of the
through the Kingdom highly most efficient airports in
attractive. Bahrains role as a
strategic aviation hub in the the region. bac has been
MENA region is reinforced named one of the most
by its deep-rooted aviation
heritage and this is deeply punctual airports in the
linked to Gulf Airs history world by oag
and heritage. Today we col-
lectively represent conveni- Mohamed Yousif Al Binfalah,
ence, efficiency and hospitality, CEO, Bahrain Airport Company
a unique proposition.
 7 BAHRAIN TUESdAy, MARCH 28, 2017

58bn of works in pipeline to sustain

Bahrains growth projections
ture to support development of the logistics sector. An ini- worlds top 20 most attrac-
Efforts arE in Bahrain. As per the objec- tial set of large-scale projects tive special economic zones
undErway to position tives of the Bahrain Economic is already underway, several the Ministry of works for foreign direct investment.
Vision 2030, the government
thE kingdoM as a kEy has constructed a number of
multibillion-dollar develop-
ments are on track to be fin-
has achieved a lot in the This privileged position is set
to be further enhanced by a
causeways, flyovers and tun- ished in the next four years, roads, sanitary and strate- recent agreement between
Entry point to thE nels over the past 10 years,
all of which have contributed
and others like the $3 billion
King Hamad Causeway, the
gic projects sectors, with KBSP and Bahrain Logistics
Zone to develop new logis-
widEr rEgion to create an efficient roads second causeway connecting more successes in the pro- tics facilities and warehouses
network that has managed to Bahrain to Saudi Arabia, will be at the port.
jects that aim to provide
B
ahrains steely determi- enhance the economic, urban completed within the coming Minister of Transportation
nation to push forward and commercial boom in the decade.This one project alone modern infrastructure to and Telecommunications Ka-
an infrastructure agenda Kingdom. is expected to lower import mal bin Ahmed Mohammed
that will secure its position To date, 17 causeways costs by up to 50 per cent. support development in comments, The partnership
as the premier logistics hub and tunnels have been con- Like Hong Kongs logisti- Bahrain represents a major achieve-
in the northern Gulf contin- structed, including the North cal relationship with China, ment for the Bahrain Logistics
ues unabated. Slicing neatly Manama Causeway connect- Bahrain is leveraging its Essam Bin Abdulla Khalaf, Zone and will support logistics
through swathes of time, ing the capital Manama to in- proximity to Saudi Arabia to Minister of Works services in Bahrain as a regional
financing and the pitfalls of vestment and economic pro- position itself as the regions station for transhipment. Bah-
vagaries, the government has jects located in the north, a premier logistics hub. It is an rain Logistics Zones many ben-
demonstrated a single-minded project for which Bahrain was increasingly important transit in 1986, the causeway is improving freight flow, and Bahrains roads will also ing peak times and journey du- efits and facilities include com-
cohesion that has cut to the recognised with 2014 Best route for its larger neighbour, Bahrains most strategically is expected to carry an es- increase their capacity over ration from 40 minutes to 18 petitive pricing and world-class
quick of focused action. All Causeway Project in the Mid- and with recent investments important international link timated 143,000 containers the next three years thanks minutes, explains the works services in import, export, and
eyes are on the 2030 goal dle East. Indeed, a reflection in port, air, public infrastruc- and sees on average 29,000 in its first year of operations, to new infrastructure invest- minister. re-export operations, including
in Bahrain: the creation of a of the intense activity taking ture and land transport, its vehicles cross it each day, car- scaling up to 343,000 per year ment. The Ministry has dou- Other noteworthy projects reduced time required for un-
highly efficient, state-of-the- place in transport and logistics role in regional logistics will rying approximately 65,000 by 2030 and 602,000 by 2050. bled its efforts to improve include the Muharraq Ring loading and re-shipping, and it
art regional centre of cargo can be found in the sectors expand steadily, strengthen- passengers. The GCC rail network pro- roads and infrastructure Road, which includes a fourth is in close vicinity to the high-
transit, and the thriving light rise in GDP contribution. It ing its bid as the entry point The new King Hamad ject, which will allow uninter- services in line with our eco- bridge between Muharraq and tech Khalifa bin Salman Port.
industries to load it. grew three percentage points for the GCC. Causeway, scheduled for 2023 rupted rail travel from Kuwait nomic vision. An example is Manama and will enhance traf- All of these facilities position
Much has already been ac- between 2013 and 2015. The only causeway cur- completion, will comprise City to the Omani port of the revamp of Sheikh Isa bin fic flows between the airport the region as a destination for
complished, says Minister of But this has not stemmed rently connecting the island both a roadway and mixed- Salalah on the Indian Ocean, Salman Highway to support and the port. The revamp of companies seeking to access
Works Essam Bin Abdulla the tide of new projects in nation to Saudi Arabia, and traffic standard-gauge railway, also envisions a new cause- trade and transport by pro- the Alba and Nuwaidrat Inter- the Gulf region.We are confi-
Khalaf.The Ministry of Works the country. The government its only terrestrial connection and is set to tie in with the way between Qatar and Bah- viding free non-stop traffic on change will improve transit dent that the partnership will
has achieved a lot in the roads, is now investing over 58 bil- with the Arabian Peninsula, is wider GCC regional rail net- rain.That causeway would be all interchanges of the highway between the Sifra refinery and allow us to meet the growing
sanitary and strategic projects lion more in a raft of major the 25-kilometre King Fahd work, which will begin initial the longest in the world and from Khalifa bin Salman Port other industrial areas to KBSP. demand for specialised logis-
sectors, with more successes industrial and infrastructure Causeway, also undergoing operations in 2018. The rail provide Bahrain with direct (KBSP) in the east to King In 2012, FDI Magazine ranked tics services in the Gulf market,
in the projects that aim to initiatives that will support expansion to increase lanes link with Saudi Arabia will access to one of the GCCs Fahad Causeway in the west. KBSP and Bahrain Interna- which is estimated in the tril-
provide modern infrastruc- the continued development from 17 to 45. Inaugurated have a significant impact on fastest-growing economies. This has contributed to reduc- tional Airport as among the lions of dollars.

Most connected country in the Middle East, at the

forefront of the liberalisation of telecoms sector
Bahrain is known as thE Most coMpEtitivE and productivE tElEcoMMunications MarkEt in thE rEgion which has rEspEctivEly hElpEd it gain gloBal rEcognition

B
ahrains telecom sec-
tor revenues hit the
$1 billion mark in
2015, a milestone that was
a clear reiteration of what
many in the region already
knew: the island nations ICT
sector is the most diverse
and advanced telecommu-
nications market within the
GCC. Current subscriber
rates indicate a penetration
level of over 200 per cent,
which means Bahrainis are
carrying more than one de-
vice, and the Kingdom was
ranked 11th in the world in
2016 on the United Nations
e-government development
index. Now, with the recent
unveiling of a fourth national
telecommunications plan
(NTP), the sky is the limit.
The fourth NTP aims to
build on this position of
strength and firmly estab-
lish Bahrain as one of the
most developed countries
in the world in the ICT
field. It involves the roll out
of a national broadband
network with high-speed
fibre-optic services to each
home, school and business in
the country within the next
three to five years.
The broadband network is
just another example on a long
list of ICT firsts in which Bah-
rain has led the region. In 1962,
it became the first country in
the Middle East to install a
mainframe computer. In 1969,
it was the first to install a satel-
lite station and in 1992, it was
one of the first countries in the
world with complete digitisa-
tion of its national and inter-
national telephone switches. In
1995, it was the first country
in the region to launch an in-
ternet service.
More recently, a 2014
World Bank study examin-
ing the competitive environ-
ments in the Middle East and
North Africa (MENA) region
noted Bahrain was at the
forefront of the liberalisa-
tion of the telecom sec-
tor among Arab countries.
Bahrain was also the only
country in the region to have
adopted a market structure
and regulatory model simi-
lar to the European Union,
and to have reached the
mature stage in fixed and
mobile broadband market
development. The report
also stated that regulatory
obligations that had been
dropped against Batelco,
the national telecommunica-
tions provider, had resulted
in significant enhancements
to DSL broadband offers in
Bahrain.
Batelco Bahrain CEO,
Ms Muna Al Hashemi com-
ments, Over the past ten
years, Arab Gulf states have
made it an explicit aim to
transform their economies
into knowledge economies.
In the World Economic Fo-
rums latest Global Network
Readiness report, Bahrain
was ranked 28th out of 139
countries in terms of overall
network readiness in 2016.
With 92.7 per cent of its
population of over 1.3 mil-
lion having an internet con-
nection, Bahrain is the most
connected country in the
Middle East.
The fourth NTP contains
the guidelines for the tele-
communications sector over
the next three years, and is
based on eight main themes.
In addition to the high-speed
broadband, these themes in-
clude consolidating sustain-
able competition in mobile
telecommunications and
developing networks and
systems to deliver the best
services. The plan also aims
to strengthen cyber security,
improve international con-
nectivity, facilitate access
to internet applications and
services and keep regula-
tions at par with those in
place internationally.
Since liberalisation, the
development of telecom-
munications services has
seen rapid growth in Bah-
rain, and is now a major
component of the national
economy, says Telecom-
munications Regulatory
Authority (TRA) Gen-
eral Director Mohammed
Bubashait. Under the new
plan, TRA will ensure that
a suitable regulatory frame-
work and systems are in
place in order to facilitate
the evolution of environ-
ment-friendly wireless net-
works that continuously
support the future services
and respond to the needs of
consumers and investors.
Mr Bubashait says the sec-
tor registered a compound
annual growth rate of 4.6
per cent between 2010
and 2015. This growth is
expected to continue with
the implementation of the
fourth NTP, which aims to
enhance the ability of the
kingdom and its citizens to
achieve a range of societal
growth and economic diver-
sification objectives.
Evolving as the regions
ICT powerhouse
Ultimately, the fourth NTP
envisions consolidating Bah-
thanks to the governments to experience streamlined optic cable links to the rest
forward-thinking regula- and seamless connectivity of the Gulf.
tory framework, progres- around the clock. We have Looking forward, many
sive policymaking and lib- already launched the regions new opportunities are aris-
eral, supportive business first digital solutions rooted ing in government-led pro-
environment. The leaders in that very insightto con- curement in fields such as
of Bahrain have positioned nect all aspects of life un- transport and infrastructure
the country as the Middle der one network, be it your projects, e-government, and
Easts most liberal informa- home, your cars, your health health and education. Bah-
tion, communications and and even your kids. rains financial services is
technology market, making Bahrain is well placed to also a major consumer of IT
it the perfect business envi- become the tech hub of the services, and will continue
ronment that offers a stra- region. The telecommunica- to offer tech companies new
tegic geographic position at tions sector currently em- opportunities. Bahrain cur-
the heart of the Gulf, he ploys 3,200 people, with rently leads the Arab world
comments. Bahrainis representing 68 for business-to-consumer
Moving forward, we be- per cent. Bahrain offers an e-commerce, and the sec-
lieve that this era is one that ideal location for technol- tor is yet another potential
requires high levels of cross ogy companies to access the opportunity for companies.
industry collaboration. Sec- fast-growing Middle East and The sector is expected to
tors such as telecom, bank- GCC markets. Its location in grow in the GCC by 40 per
ing, health and education the centre of the region, with cent over the next three
must collaborate together a direct road link to Saudi years, to reach an estimated
and push one another to Arabia, the regions largest value of around 33 billion.
new heights. We are contin- market, offers companies a In the MENA region as a
such as the 2012 partner- Mr Al Wetaid adds that uously exploring new ways base in a liberal, supportive whole, the sectors value
ship between US tech group VIVA has experienced phe- to improve our offerings and business environment. Bah- is expected to increase
Moving Thinspace and local firm
Mantech to deploy cloud-
nomenal growth in record-
breaking time in Bahrain,
provide technologies which
would allow our customers
rain boasts a deregulated
telecoms market, with fibre
to around 165 billion by
2020.
forward, computing technology to
we believe business clients in the region
are helping to advance the
that this era countrys goal of becoming
is one that the premier ICT hub.
Others include the 2014
requires alliance between Kalaam Tel-
high levels ecom and Indian telecoms gi-
ant Bharti Airtel to establish
of cross in- a direct interconnection with
dustry col- Airtels point-of-presence
in the UK and access to its
laboration. network, and the 2015 ven-
sectors ture between the UKs BT
Group and VIVA, a subsidiary
such as tel- of Saudi Telecom, to launch
a global internet protocol
ecom, bank- exchange interoperability
ing, health hub in Bahrain. Using an IP-
based network-to-network
and educa- interface, this technology al-
tion must lows for separate mobile and
fixed networks to exchange
collaborate traffic and will enhance the
together services of mobile and fixed
providers across the region.
and push It should also lead to signifi-
one anoth- cantly lower prices for 4G
services. The deployment of
er to new the IP exchange in Bahrain
heights made it just the fourth host
in the world, along with Mi-
ami, London and Singapore.
Ulaiyan M. Al Wetaid, Ulaiyan M.Al Wetaid, CEO
CEO, VIVA Bahrain
of Viva Bahrain, says, Bah-
rain is known as the most
competitive and productive
rains role as a regional hub telecommunications mar-
for information and commu- ket in the region which has
nication technology, similar respectively helped it gain
to its current status as a global recognition. It is a
financial centre. There are three-layer market that has
already over 200 ICT firms been aggressively deploying
in the country, ranging from the latest technologies to
multinational giants such as ensure customers can access
Cisco, Zain, HP, Microsoft and experience the worlds
and Tata Consultancy Servic- emerging ICT developments
es to niche service provid- and take part in the digital
ers and start-ups. Initiatives evolution.
8 BAHRAIN TUESdAy, MARCH 28, 2017