Bahrain’s track record is the formula for success, says EDB
Next month’s Formula One (F1) Gulf Air Bahrain Grand Prix (Sunday 26 April) will be a timely reminder of Bahrain’s pole position as a regional business hub, believes Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Kingdom’s Economic Development Board (EDB).
F1 boss Bernie Ecclestone has pointed to Bahrain as an example of the publicity made possible by putting a destination's name to a race. According to Martin Whitaker, Chief Executive Officer of the Bahrain International Circuit, Bahrain was the second most watched circuit on last year’s F1 calendar, helping to raise awareness of the Kingdom as an attractive location for international businesses looking to access the markets of the Gulf. Results on the track also represented a small victory for the Kingdom, whose national investment body Bahrain Mumtalakat Holding Company has a 30 per cent stake in McLaren Group. This season, with investors looking on in the midst of the economic global downturn, it will be Bahrain’s own track record that will drive success, says Shaikh Mohammed.
“Our position as the most established financial centre in the Gulf makes us better placed than many others to weather the current economic climate. We have adopted a very sound fiscal and monetary approach which will help to maintain our platform for growth. We are not complacent – no one is completely immune from the global crisis – but having seen global downturns before, we have the experience to deal with difficult times and are confident we will emerge stronger.”
The benefits of this experience are already becoming evident. Bahrain has so far been less affected by the global economic downturn than some others in the region thanks to measures designed to preserve and grow the prosperity that the Kingdom has been nurturing for many years. These include prudent financial policies, long term strategy of economic diversification and a tried and tested legal and regulatory environment with a commitment to the highest international standards. This approach is now enshrined in Bahrain’s Vision 2030 and National Economic Strategy, both committed to maintaining the optimum business environment that will attract foreign investment and ultimately allow Bahrainis to secure their own prosperous future.
Like Mumtalakat, ranked the most transparent sovereign wealth fund in the Gulf by the independent Sovereign Wealth Fund Institute1, Bahrain places a high priority on openness. The Kingdom is ranked the freest economy in the Middle East by the Heritage Foundation/Wall Street Journal’s 2009 Index of Economic Freedom and 16th in the world – the only country in the MENA region to appear in the world’s top 20. Despite the global downturn, Bahrain is committed to supporting free market principles to ensure businesses can operate competitively and effectively.
Shaikh Mohammed added: “The Bahrain F1 Grand Prix will once again showcase the Kingdom’s attractive business environment for companies looking to access the MENA region. Its strategic location as the gateway to the Gulf, low cost of doing business, strong and highly regarded regulation and minimal red-tape allowing 100 per cent ownership of business assets and real estate – with no corporate or personal income taxes – will continue to attract investment.”
Bahrain is recognised as the most diversified economy in the Gulf, with oil and gas production contributing to only 14 per cent of GDP (2007). On top of a thriving financial services sector, the Kingdom also has strong professional services, logistics and manufacturing sectors. International businesses already in Bahrain include Microsoft, Kraft, BNP Paribas, Ernst & Young, KPMG, FedEx and Standard Chartered Bank.
