Annual Report 2011 Bahrain Economic Development Board Bahrain Economic Development Board P.O

Annual Report 2011 Bahrain Economic Development Board Bahrain Economic Development Board P.O. Box 11299, Manama, Kingdom of Bahrain T: +973 17 58 99 99, F: +973 17 58 99 00 www.bahrainedb.com

His Royal Highness, Prince His Majesty King His Royal Highness, Prince Khalifa bin Salman Hamad bin Isa Salman bin Hamad Al Khalifa Al Khalifa Al Khalifa

The Prime Minister of The King of the Kingdom The Crown Prince the Kingdom of Bahrain of Bahrain & Deputy Supreme Commander

Contents

2 3 4 6 8

Mission Chairman’s Board of Chief Profil and Vision Statement Directors Executive’s Report 10 14 20 24 30

On the Road to Recovery Attracting and Executive Bahrain Economic Benchmarking Major Reform Nurturing Foreign Management Review Bahrain Initiatives Direct Investment 35 38 42 44 46

Bahrain - Among the best to Live, Towards Work and do Flying the Flag Spreading the Organisational Moving Business Abroad Message at Home Excellence Forward Annual Report 2011 Bahrain Economic Development Board 2_3 At AGlance initiatives thatwilldirectlybenefit allcitizensoftheKingdom for transformingBahrain’s Economic Vision 2030intorealitythrough theimplementationofactionable Al Khalifa, theCrownPrinceandChairman oftheEconomicDevelopmentBoard, theEDBisresponsible logistics, healthcare, andeducationtraining. UndertheguidanceofHRHPrinceSalmanbin Hamad These includefinancialservices, downstreamindustries, tourism, businessandprofessionalservices, is focusingonanumberoftargeteconomicsectorsinwhich theKingdomofferssignificantstrengths. and timelymanner. Inlinewithitsresponsibilityforattractinginwardinvestment intoBahrain, theEDB sound projectmanagementtoensurethatallagreedreform initiatives areimplementedinaneffective stakeholders tounderstandandadoptthechangesnecessary forprogress.Inaddition, theEDBprovides Vision 2030, andtodevelopkeystrategiesforgrowth. The Boardalsoactsasafacilitator, helpingall The roleoftheEDBistoprovideleadershipbyunitingall Bahrain’s stakeholdersundertheEconomic enduring prosperityforallBahrainicitizens and direct investmentintotheKingdom,inorderto providegreateropportunities strategy oftheKingdomBahrain,andforcreating therightclimatetoattract andoverseeingtheeconomicdevelopment overall responsibilityforformulating The EconomicDevelopmentBoard(EDB)isadynamicpublicagencywithan Profile

. Bahrain. we do. professional andinnovativeinallthat private sectors, and bybeingpassionate, working inpartnershipwiththepublicand location. We willaccomplishthesegoals by Gulf’s mostwelcomingbusiness-friendly for ourcitizens, and tomakeBahrainthe standards bycreatinggreateropportunities We arededicatedtoraisingliving Vision the globalmarketplace. investment, and enablesustocompetein business environment, encouragesinward advancement ofamodernandliberalised by developingastrategythatsupportsthe To growanddiversifyBahrain’s economy Mission Annual Report 2011 Bahrain Economic Development Board 4_5 Development Board Chairman oftheEconomic Supreme Commander Crown PrinceandDeputy Hamad Al-Khalifa HRH PrinceSalmanbin Statement Chairman’s significant andenduring. the reformprogramme,hasbeenboth embedding institutionstohelpdeliver in attractinginvestmentand diversifying theeconomy; the workofEDBin Over thepastnineyears, for furtherreforms. to addresspoliticalandsocialissueslaytheframework engaging activelyinaseriesofinclusiveanddirectdialogues, the exceptionofMorocco, tohaverespondedeventsby Bahrain alsoremainstheonlycountryinregion, with legitimate inquiryintoitshandlingofthesituation. events of2011tohaveconductedafull, independentand remains theonlycountrywithincontextofregional It isindicativeofBahrain’s commitmenttoreformthat it reform. of Inquiry, thatmetthechallengeincontinuedspiritof National DialogueandtheBahrainIndependentCommission role incontributingtothevitalinitiatives, includingthe our nationachallengeandtheEDBplayedsignificant also haditsimpacthereinBahrain. The issuesitraisedset The unrestthataffectedmanycountriesintheMiddleEast Of course, 2011alsomarkedadifficultperiodfortheregion. underpinned bystrong, dependableregulation. openness ofourbusinessenvironment–an the talentofourpeople, thebenefitsofourlocationand is sustainableandbuildsuponthecountry’s corestrengths: undertaken torealignBahrain’s economyinamannerthat But, theyalsounderlinetheimportanceofnecessarywork economic successesachievedtodate. These arenosmallachievementsandvividlyillustratethe decreased fromaround15percent(2006)tojust3.6cent. 40 percent, realwagesby62percentandunemployment Perhaps mostimportantly, Bahrainiemploymentgrewby than halfofallexportvolumes. total exports, withnon-oilrelatedgoodsaccountingformore exports fromtheserviceindustryaccountfornearlyathirdof too haveseenamoveawayfromoildependence. Today, Bahrain’s exportvolumeshavemorethandoubledandthese as thesectorexpandedby125percent. Alongside this, financial sector’s sharerosefrom19percentto25 from 25percentin2001to132011whilethe dependence; theshareofGDPfromoilsectordropping Over thistime, theeconomy’s focushasmovedaway fromoil country asawholehasbenefitedfrom. cent annually-anunparalleledperiodofprosperitythatthe EDB hasoverseenaneconomythatgrownby6per both significantandenduring. Sinceitsestablishment, the institutions tohelpdeliverthereformprogramme, hasbeen the economy;inattractinginvestmentandembedding Over thepastnineyears, theworkofEDBindiversifying the potentialstilltobeexplored. role, whileacknowledgingthechallengesthatstillexistand Economic DevelopmentBoard(EDB)hasplayedanintegral economic successestodate, successesinwhichthe It isimportanttoremindourselvesofthisprogramme’s reform programme. Majesty KingHamadbinIsa Al-Khalifa’s comprehensive endorsement ofthepeopleBahrain, formallyheraldedHis Charter which, throughtheoverwhelmingdemocratic 2011 markedthetenthanniversaryofNational Action Chairman oftheEconomicDevelopmentBoard Crown PrinceandDeputySupremeCommander HRH PrinceSalmanbinHamadAl-Khalifa higher qualityoflifeforallcitizensBahrain. economy inordertoensuregreaterpersonalprosperityanda wholehearted effortstostrengtheningtheKingdom’s With God’s grace, theEDBwillcontinuetodevoteits Al-Khalifa, thePrimeMinister. guidance ofHisRoyalHighnessPrinceKhalifabinSalman Al-Khalifa, andthesupportofGovernmentunder leadership andvisionofHisMajestyKingHamadbinIsa like toexpressmysincereappreciationfortheenlightened On behalfoftheEconomicDevelopmentBoard, Iwould impact onthelivesofallBahrainis. shaping anenvironmentthatwillhaveatangible, positive Bahrain, whoaresointegraltooureconomicsuccess, while Importantly itwillalsocontinuetocourtinvestorscoming attractiveness ofBahrainasabasetoaccesstheGCCmarket. sustainable growth-whileworkingtoenhancethe transparent regulation, anopenbusinessenvironment, these fundamentals–ahighlyskilledworkforce, stableand Looking ahead, theEDBwillcontinuetoworksupport economic fundamentalscarriedBahrainthroughonceagain. Having withstoodtheglobaleconomicdownturn, ourstrong continued toarriveandBahraindevelop. Throughout 2011, theeconomycontinuedtogrow, companies work oftheEDBwastested.Itatestthatpassed. This year, inchallengingcircumstances, theeconomyand EDB willcontinuetoplayapivotalrole. will informournation’s ongoingdevelopment, inwhichthe Majesty tothereformprogrammeremainsundiminished.It we areenteringanewchapter. The commitmentofHis Now, almosttenyearsonfromtheestablishmentofEDB, Annual Report 2011 Bahrain Economic Development Board 6_7 Minister ofFinance Khalifa HE Sh.AhmedbinMohammedAl Minister ofIndustry&Commerce HE Dr. HasanbinAbdullaFakhro Deputy PrimeMinister Khalifa HE Sh.KhalidbinAbdullaAl Committees Deputy PrimeMinisterforMinisterial HE JawadbinSalemAlArrayed Equestrian andEnduranceFederation President oftheBahrainRoyal of theRoyalCharity Association, Chairman oftheBoard Trustees Khalifa HH Sh.NaserbinHamadAl Wildlife of MarineResources, Environment& Public CommissionfortheProtection Majesty theKing, Presidentofthe Personal RepresentativeofHis Khalifa HH Shk.AbdullabinHamadAl Committees Deputy PrimeMinisterforMinisterial HH Sh.AliBinKhalifaAl Committees Deputy PrimeMinisterforMinisterial Al Khalifa HH Sh.MohammedbinMubarak Members Board ofDirectors The CrownPrince, DeputySupremeCommander Salman BinHamadAlKhalifa His RoyalHighnessPrince Chairman Commerce &Industry Chairman, Bahrain Chamberof HE Dr. EssamAbdullaFakhro Minister ofCabinet Affairs HE KamalbinAhmed Minister ofLabour Hmaidan HE JameelbinMohammed Planning Minister ofMunicipality&Urban HE Dr. JumaAlKaabi Minister ofCulture Khalifa HE Sh.MaibintMohammedAl Minister ofJustice&Islamic Affairs HE Sh.KhalidbinAliAlKhalifa Governor, CentralBankofBahrain HE RasheedMohammedAlMeraj Minister ofHealth Development Minister ofHumanRights&Social Balooshi HE Dr. FatimabintMohammedAl Minister ofElectricity& Water affairs Mirza HE Dr. AbdulHussainbinAli Minister ofEducation HE Dr. MajidbinAliAlNuaimi Bank B.S.C President GulfBusiness, Invescorp Shroogi Mr. MohammedEbrahimAl Investment Holding Managing Director, Harbour Mr. Tariq Jalil AlSaffar Managing Director, Al MaskatiGroup Mr. AdelHussainAlMaskati Aali Co. Executive,Mansoor Al Chief Ahmed Mr. JalalAhmedAlAali Chief ExecutiveOfficer, ArcapitaBank Mr. AtifAhmedAbdulMalek Limited Chairperson, HealthcorpMiddleEast Ms. ElhamAbdullaHassan Company Bahrain MumtalakatHolding Mr. Talal Alzain Chief Executive, NassGroup Mr. SameerAbdullaNass Senior Partner, JawadHabibGroup Mr. JawadHabib 7 Annual Report 2011 Bahrain Economic Development Board 8_9 Chief Executive Al Khalifa Sh. MohammedbinEssa Report Chief Executive’s proactive manner. these challengesinapositiveand economy andtheEDBrespondedto pleased toreportthattheBahrain political upheaval. unprecedented regional market conditions,and economic growth,volatile weakened global The year2011witnessed Iam opportunities, addressingthehousing problemandincreasingthe We willfocusonsustainableeconomicgrowthbycreatingjob national resourcestomeetlocal, regionalandglobalchallenges. parties andtheneedtotakemaximum advantageofBahrain’s from theNationalDialogueincollaboration withallconcerned tangible stepstosupporttheimplementation oftheoutcomes solid basisfortheEDB’s futurestrategyandplans. These include Our achievementsandprogressduring2011haveprovideda transparency. and implementingthehigheststandardsofaccountability processes. We remaincommittedtoadoptingglobalbestpractices, our governanceframework, ICTinfrastructureandinternal capabilities duringtheyear, withparticularfocusonenhancing we continuedtodevelopourbusiness, financeandadministrative As anorganisation, theEDBstrivestoleadbyexample. Accordingly, to onlinecommunicationsviasocialmedianetworks. media activitiesrangingfrompressreleases, radioand TV coverage, keynote industryconferences, sportingandculturalevents; employees andmembersofthediplomaticcorps;hosting presentations togroupsasdiversestudents, publicsector active andpositiveparticipationbyallstakeholders. This involved understanding ofBahrain’s Economic Vision 2030, andinspire its nationalcommunicationsprogrammetopromotegreater Throughout 2011, theEconomic DevelopmentBoardmaintained tournament forthe2011European Tour Schedule.. the firsttimeinKingdom. Thisprestigiouseventwasthekick-off success thisyearwasthestagingof Volvo Golf Championshipfor the hostingofmajorinternationaleventsinBahrain. A notable As wellasflyingtheflagabroad, theEDBalsocontinuedtosponsor Fund, andthe World Bank. meetings ofthe World Economic Forum, theInternationalMonetary participate inkeynoteglobalconferencesandforums, including In addition, theEDBledpublic andprivatesectordelegationsto enduring attractionsofBahrainthroughinformedmediacoverage. to Bahrainforinternationaljournalistshighlighttheuniqueand influencers. Alongsidethis, theEDBorganisedfamiliarisationtrips Germany andItaly, directlyengagingFDIdecision-makersand figures fromtheBahrainbusinesscommunityinUSA, UK, France, the EDBhasconductedinternationalroadshowswithleading Sowing theseedsforfutureinvestmentandenhancingtradelinks, by theendofyear, a3percentannualincrease. the numberoffinancialinstitutionscontinuetoincrease, totalling415 India; andgloballawfirmDLAPiper. Inthefinancialsector, wesaw asset managers, NotzStucki;CanaraBankandJBFIndustriesfrom established operationsinBahrain, includingBASF; Geneva-based companies, primarilyinthebankingandmanufacturingsectors, attracting over$300millionofnewforeigninvestment.Over20 year, supportedbytargetedmediacampaigns, resultedintheEDB Successful internationalbusinessdevelopmentactivitiesduringthe Heritage Foundation in theMiddleEast, and12thintheworld, accordingtotheUS-based one example, Bahrainremainsthemostliberalbusinessenvironment doing business, globalcompetitivenessandICTreadiness. As just global indicesincludingeconomicfreedom, financialdevelopment, confirmation tooktheformofimprovedrankingsforBahraininmajor transport andcommunications, andminingquarrying. Additional growth wasachievedinthekeysectorsoffinance, manufacturing, and itsfundamentalsunaffected.Inparticular, significantannual encouraging trendillustratesthattheeconomywasstable, resilient final quartercomparedwiththesameperiodayearearlier. This previous levelsinthethirdquarter, andgrewby3.2percentinthe After asharpfallinthefirstquarterofyear, outputreturnedto grow through2011, andreached2.2percentgrowthbyyearend. Even duringachallengingperiod, Bahrain’s economycontinuedto Economic Strategy. line withBahrain’s Economic Vision 2030andthesecondNational educational, healthcareandhousingservices.Suchobjectivesarein new foreigndirectinvestment, andprovidecitizenswithenhanced initiatives togrowanddiversifytheKingdom’s economy, encourage Throughout theyear, theEDBcontinuedtoimplementahostof Chief Executive Shaikh MohammedbinEssaAl-Khalifa commitment duringthischallengingyear. the managementandstaffofEDBfortheirdedication for theirpositivecooperation.Ialsogivemyheartfeltthanksto and guidance, andourpartnersinthepublicprivatesectors like tothanktheBoardofDirectorsfortheircontinuedconfidence and ChairmanoftheEconomicDevelopmentBoard.Iwouldalso Highness PrinceSalmanbinHamad Al-Khalifa, theCrownPrince inspired leadershipandunwaveringencouragementfromHisRoyal Our progressduring2011wouldnothavebeenpossiblewithoutthe Salman Al-Khalifa, thePrimeMinister, inpursuitofthesegoals. under thewiseleadershipofHisRoyalHighnessPrinceKhalifabin bin Isa Al-Khalifa’s reformprogrammeandworktheGovernment In short, wewillcontinuetocontributeHisMajestyKingHamad dedicated totheserviceofBahrainanditspeople. citizens andfuturegenerations.Everythingwedowillalwaysbe continued economicgrowthanddevelopmentforthebenefitofour will continuetobuildonthesestrengthsensuretheKingdom’s open businessenvironmentandavibrant, cosmopolitanlifestyle. We a strongregulatoryframework, ahighly-skilledlocalworkforce, an in attractingforeigninvestment, havenotchanged. These include Bahrain’s economicfundamentals, whichhaveprovedsosuccessful the region’s financialhub. investment inkeygrowthsectors, andconsolidateBahrain’s statusas the Kingdom’s economicdiversity, attractfurtherforeigndirect of comprehensiveandintegratedeconomicpoliciestoenhance average householdincome. Inparticular, wewillsupporttheadoption Annual Report 2011 Bahrain Economic Development Board 10_11 Management Executive Chief LegalAdvisor 2.Yousif Khalaf Special Projects Deputy ChiefExecutive 1. AusamahAlAbsi Infrastructure Reform Director 4. Business Development Director 3. Mariam Jumaan Vivian Jamal Global Communications Director 6. Education Reform Director 5. Rania AlShirawi Geoffery Hanckok 2 3 1 5 4 6 10 7 11 12 8 13 14 9 Corporate Services Executive Director 9. Senior LegalAdvisor 8. National Communications Director 7. Hayam AlAwadhi Dr. JameelAlAlawi Isa Abdulrahman Projects Director 12. Global Marketing Director 11. International AdvisortoCE 10. Rana Faqihi Rima AlKilani Stephen Harrison Financial Services Business Development Director 14. Communications Global Marketing& Executive Director 13. Boyed Winton Stephanie Wong Annual Report 2011 Bahrain Economic Development Board 12_13 environment and a vibrant,cosmopolitanlifestyle. a highly-skilledlocal workforce,anopenbusiness changed. Theseincludeastrongregulatory framework, so successfulinattractingforeign investment, havenot Bahrain’s economicfundamentals, whichhaveproved Everything wedowillalwaysbededicatedtotheserviceofBahrainanditspeople. Kingdom’s continuedeconomicgrowthanddevelopmentforthebenefitofourcitizensfuture generations. environment andavibrant, cosmopolitanlifestyle. We willcontinuetobuildonthesestrengthsensurethe not changed. These includeastrongregulatoryframework, ahighly-skilledlocalworkforce, anopenbusiness Bahrain’s economicfundamentals, whichhaveprovedsosuccessfulinattractingforeigninvestment, have generations. Everythingwedowill alwaysbededicated We willcontinuetobuildonthese strengthstoensure development forthebenefitofourcitizensandfuture the Kingdom’s continuedeconomic growthand to theserviceofBahrainanditspeople. Annual Report 2011 Bahrain Economic Development Board 14_13 USD300 Million over $300millionofnewforeigninvestment. supported bytargetedmediacampaigns, resultedintheEDBattracting Successful internationalbusinessdevelopmentactivitiesduringtheyear, 12.6% prices andafallinnon-oilimportsduetoreductiondomesticdemand. or 12.6%ofGDPin2011. This unusuallylargesurpluswasdrivenbyhighoil The Current Account experiencedalargesurplusofBD1.2bn(USD3.2bn), in thepreviousyear. final quarterof2011comparedwiththesameperiod quarter oftheyear.Outputgrewby3.2percentin output growthreturnedtopreviouslevelsinthethird March. Afterasharpfallinthefirstquarter,real by theunrestinKingdomduringFebruaryand Bahrain’s Bahrain EconomicReview On theRoadtoRecovery Operations Review economic growthduring2011wasaffected Source:CIO output) at3.2%. included Governmentat5.6%, Manufacturingat3.9%,Finance2.6%,andMiningQuarrying (comprisingmainlycrudeoil significant sinceitisalargesector accountingforalmost10%ofGDP.Otherlargesectors that experiencedencouraginggrowth The fastestgrowingsectorin2011 wasTransportandCommunicationwith11%growthfor theyear.Thisisparticularly manufacturing, miningandquarrying,finance. A numberofkeysectorsachievedsignificantgrowthduringtheyear,includingtransportandcommunications,government, Bahrain EconomicReview earlier. February andMarch,outputreturnedtopreviouslevelsinQ3,grewby3.2%Q4comparedwiththesameperioda year faster thanexpectedinthesecondhalfofyear.AfterasharpfallQ12011duetounrestKingdomduring Bahrain’s annualrealoutputgrowthreducedto2.2%in2011comparedwith4.5%2010.However,theeconomyrecovered Bahrain quarterlyrealGDPgrowth2009-2011 -15% -10% Source:CIO Growth ofrealGDPbysectorin2011 -3% -2% -1% 10% 15% -5% 1% 2% 3% 4% 5% 6% 0% 5% Quarterly

Trans.&Comm Q1

Elect. & water Q2 2008

Soc.&Per.Srvc Y-o-Y Q3

FISM

Government Q4

Other Q1

Manufacturing Q2 Mining &

Quarrying 2009

Finance Q3

GDP Q4

Trade same periodayearearlier. of 2011comparedwiththe by 3.2percentintheQ3 Bahrin's annualoutputgrew 3.2% Q1

Agriculture

Import DuQes Q2 2010

ConstrucQon Q3

Real Est.& Business Act. Q4

Hotels & Rest. -25% -20% -15% 10% 15% 20% 25% -5% Output growthbyquarterYoY 0% 5% -20% -15% -10% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Consumer PriceIndex(2006=100) Private employment growthfrompreviousquarter Private employmentgrowthfrompreviousquarter 10% Bahrain's WorldwideRankings2011 Current accountas%ofGDP 115 114 113 112 111 110 109 108 107 106 -5% 10% 12% 14% 16% 18% 100 120 140 0% 5% 0% 2% 4% 6% 8% 20 40 60 80 0 Q1 Hotels &Rest. Construction Rank

Jan Q2

12 Oct

Economic 2010 13.8% Freedom 2006 2010 Mar Q3 Nov Q1 Q4 2009

24 May Financial Development Dec

Jul Q1 30/138 15.7% 2007 Q2 Jan Real Est.&Bus.Act. Trade ICT Sep 2011 readiness Bahraini

Nov Q3 Feb 32

Logistics Jan Q4

Performance Mar Q2 10.2% 2008 Mar

38 Apr Doing May

Business 2010

May Jul Non-Bahraini Annual Report 2011 2011 Global 37 Bahrain Economic Development Board 16_15 2.9% Competitveness 2009 Sep Jun 2010. number ofBahrainisemployed inthepublicsectoralsoexperiencedanoverallfallof1%by theendof2011comparedto in thelastthreequartersof2011, employmentattheendofyearremained1%lowerthan 2010forBahrainis.The quarterly reportfromtheSIO.The fallinemploymentwasfeltsimilarlybymalesandfemales. Whileemploymentgrew Bahraini privatesectoremployment fellby12,653(orover15%)inQ12011,accordingtorevised numbersintheQ4 Employment andwages Activities down9.2%comparedtothesameperiod. Construction outputinQ42011wasdown11.4%fromthesame quarterayearearlier,withRealEstateandBusiness The Constructionsectorperformedpoorlythroughout2011,although itwitnessedaslightimprovementinQ3. positive comparedtothesameperiodin2010.AsofQ42011, Tradewasdown1.3%fromQ4inthepreviousyear. While TradesectoroutputfellinQ1andQ2during2011compared topreviousquarters,growthremainedweakbut lower thanthesamequarterin2010. recovered somewhatinthethreeconsecutivequarters,output remainedatitslowestlevelsincemid-2009,andwas7% The HotelsandRestaurantssectorwashithardinQ12011,falling by22%fromthepreviousquarter.Whilesector The sectorsofHotelsandRestaurants;Construction;RealEstateBusinessActivitiesallcontractedin2011. insurance andretailbanking. increase forcivilservantsinQ32011.TheFinancesectoralsowitnessedrobustgrowth,predominantlytheareasof Government outputexperiencedlargegrowthinthesecondhalfof2011,whichincludedasignificant13%wage production levelofaround30,000barrelsperdaypriorto2009. which aimstoincreaseoilproductionmorethan100,000barrelsperdayinthecomingyearsfromprevious earlier. ThisgrowthispartoftheplanneddevelopmentandexpansionBahrainFieldbyTatweerPetroleum, Mining andQuarrying(predominantlycrudeoilproduction)grewby6.5%inQ42011fromthesameperiodayear Growth ofthissectorinQ42011was8.1%higherthanthesameperiodayearearlier,and3.9%2010overall. Manufacturing outputfellby3%inQ12011comparedtothepreviousquarter,butrecoveredfollowingquarters. Bahrain EconomicReview On theRoadtoRecovery Operations Review Source:CIO Output growthbyquarter 10% 12% 14% 16% 0% 2% 4% 6% 8%

Nov Q3 40/139 Jul & Travel

Tourism Jan Q1 Finance Mining &Quarrying Aug Mar Q2 3.5% 2010 2010 42 HDI May Sep Q3 2011 ‐ largesectorsYoY Jul Q4

46 Oct Corruption

Perception Q4 Sep Q1 12.6% 2011 Nov Government Manufacturing Q2

51 Nov 2011

EDI 2012 Dec Jan Q3 Q4 Source:CIO -25% -20% -15% 10% 15% 20% 25% -5% Output growthbyquarterYoY 0% 5% -20% -15% -10% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Consumer PriceIndex(2006=100) Private employment growthfrompreviousquarter Private employmentgrowthfrompreviousquarter 10% Bahrain's WorldwideRankings2011 Current accountas%ofGDP 115 114 113 112 111 110 109 108 107 106 -5% 10% 12% 14% 16% 18% 100 120 140 0% 5% 0% 2% 4% 6% 8% 20 40 60 80 0 Q1 Hotels &Rest. Construction Rank

Jan Q2

12 Oct

Economic 2010 13.8% Freedom 2006 2010 Mar Q3 Nov Q1 Q4 2009

24 May Financial Development Dec

Jul Q1 30/138 15.7% 2007 Q2 Jan Real Est.&Bus.Act. Trade ICT Sep 2011 readiness Bahraini

Nov Q3 Feb 32

Logistics Jan Q4

Performance Mar Q2 10.2% 2008 Mar

38 Apr Doing May

Business 2010

May

Jul Non-Bahraini 2011 Global 37 2.9% Competitveness 2009 Sep Jun -25% -20% -15% Output growthbyquarter 10% 12% 14% 16% 10% 15% 20% 25% -25% -20% -15% -5% Output growthbyquarterYoY 0% 2% 4% 6% 8% 10% 15% 20% 25% 0% 5% -5% Output growthbyquarterYoY Q3

Nov 0% 5% 40/139 Labour, didnotwitnessanymajorchangein2011despitethe significantfallinemploymentthefirstquarterofyear. public sectorwages.Publicwagegrowthinotherquarterswas negligible.Theunemploymentrate,asstatedbytheMinistryof Public sectorwagesforBahrainisgrewbycloseto13%inQ3 2011,followingthemandatesetbyNationalDialoguetoincrease quarters. quarters showedfallingprivatesectorBahrainiwages,whichalsocoincideswiththeemploymentpatternincorresponding was feltmostlybyworkersearninglessthantheaveragewage,causingwagetoincrease.Thefollowingthree the negativeemploymentgrowthinthatquarter,largeincreaseaveragewagesuggestsfall The largeQ1increaseinwagescoincideswiththedropemployment.Givenunusually and 2011. Averagewagegrowthfornon-Bahrainisremainednegativeby0.5% wage thensawaslightfallinthefollowingthreequarters,resultingtotalgrowthprivatesectorBahrainiwagesof4% for Private sectorwagesinQ12011grewby9.4%forBahrainisand3.5%non-Bahrainis.TheBahrainiprivateaverage by theyear-end. workers). However,Non-Bahrainiemploymentwitnessedmorerobustgrowthinthefollowingquarters,leadingtoa3% Non-Bahraini privatesectoremploymentfellfasterthanBahrainiinQ12011byalmost18%(notincludingdomestic -20% -15% -10% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Consumer PriceIndex(2006=100) Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter Growth ofrealGDPbysectorin2011 10% Source:MoL Source:CIO Bahrain's WorldwideRankings2011 Current accountas%ofGDP Jul 115 114 113 112 111 110 109 108 107 106 -20% -15% -10% -5% 10% 12% 14% 16% 18% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 100 120 140 Consumer Price Index (2006=100) Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter 10% 0% 5% Bahrain's WorldwideRankings2011 Current accountas%ofGDP 115 114 113 112 111 110 109 108 107 106 -5% 10% 12% 14% 16% 18% 100 120 140 0% 2% 4% 6% 8% & Travel 20 40 60 80 0% 5% 0% 2% 4% 6% 8% 20 40 60 80 0 Q1 Q1 0 Tourism Jan Q1 Finance Mining &Quarrying Hotels &Rest. Construction Aug Hotels &Rest. Construction Rank

Jan Q2 Q2 Rank Q2 12 Mar Jan Oct 12 3.5% 2010 Economic Oct 2010 2010 42 2010

Economic 13.8% 2006 Freedom 13.8% HDI Freedom 2006 2010 Mar Q3 Q3

Sep 2010 May Mar Q3 2011 Nov

Nov Q1 Q1 ‐ largesectorsYoY Q4 2009

24 May Q4 Q4 2009 24 Financial Jul May 46 Financial Oct Corruption Development Development Dec Dec

Perception Q4 Q1

Jul Q1 Sep Jul Q1 12.6% 2011 Nov 30/138 15.7% 30/138 2007 15.7% Government Manufacturing 2007 Q2 Jan Real Est.&Bus.Act. Trade

Sep Q2 Q2 ICT Sep Jan Real Est.&Bus.Act. Trade 51 ICT Nov 2011 2011 Bahraini readiness 2011 Bahraini

EDI readiness 2012 Dec Q3

Nov Q3 Nov Q3 Jan Feb Feb 32 32 Q4 Q4 Logistics Logistics Jan Jan Q4 Performance Mar Q2 Performance Mar Q2 10.2% 2008 10.2% 2008 Mar Mar

38 Apr

38 Apr Doing Doing May

Business May 2010 Business 2010 May

Jul May Non-Bahraini

Jul Non-Bahraini 2011 2011 37 Global 37 Global 2.9% Competitveness 2009 Sep 2.9% Competitveness 2009 Sep Jun Jun Output growthbyquarter 10% 12% 14% 16% Output growthbyquarter 10% 12% 14% 16% 0% 2% 4% 6% 8% 0% 2% 4% 6% 8% Nov Q3 40/139 Nov Q3 40/139 Jul & Travel Jul & Travel 13% servants inQ32011. 13% wageincreaseforcivil which includedasignificant in thesecondhalfof2011, experienced largegrowth Government output Tourism Q1 Tourism Jan Q1 Jan Finance Mining &Quarrying Finance Mining &Quarrying Aug Aug Q2

Mar Q2 3.5% 2010

Mar 2010 3.5% 42 2010 2010 42 HDI HDI Sep Q3

May Sep Q3 May 2011 2011 ‐ largesectorsYoY ‐ largesectorsYoY Q4

Jul Q4 46 Jul Oct

46 Oct Corruption Corruption

Perception Q4 Q1

Perception Q4 Sep Q1 Sep12.6% 2011 12.6% Nov 2011 Nov Government Manufacturing Government Manufacturing Q2 Q2 51 Nov 51

Nov 2011 2011

EDI 2012

EDI 2012 Dec Dec Q3 Jan Jan Q3 Q4 Q4 Annual Report 2011 Bahrain Economic Development Board 18_17 -25% -20% -15% -25% -20% -15% 10% 15% 20% 25% 10% 15% 20% 25% -5% -5% Output growthbyquarterYoY Output growthbyquarterYoY 0% 5% 0% 5% -20% -15% -10% -20% -15% -10% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Consumer PriceIndex(2006=100) Consumer PriceIndex(2006=100) Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter large surpluswasdrivenbyhighoilpricesandafallinnon-oilimportsduetoreductiondomesticdemand. The CurrentAccountexperiencedalargesurplusofBD1.2bn(USD3.2bn),or12.6%GDPin2011.Thisunusually Current Account 3.2% and5.2%respectivelyinJanuary2012comparedtoayearearlier. and ‘transport’–whichrepresent21%12%ofCPIweightrespectively.Boththesesectorshaveseenincreases Recovery oftheCPItopre-unrestlevelsinOctoberwasledbysecondandthirdlargestsubcategories–‘food’ March andbyanadditional5%inDecember2011,whichwas19%lowerJanuary2012thanitayearearlier. represents 24%ofCPIweight,thelargestamongIndex’ssubcomponents.Pricesthiscategoryfellby14%in The drivingforcebehindthefallinpricesMarch2011was“housing,water,electricityandgas”category,which remained subduedbeyondMarch,returningtopre-unrestlevelsinOctober2011. The ConsumerPriceIndex(CPI)fellby2.1%inMarch2011comparedtothesamequarterayearearlier.Overallprices Inflation Bahrain EconomicReview On theRoadtoRecovery Operations Review 10% 10% Bahrain's Worldwide Rankings2011 Current accountas%ofGDP Bahrain's WorldwideRankings2011 Current accountas%ofGDP 115 114 113 112 111 110 109 108 107 106 115 114 113 112 111 110 109 108 107 106 -5% -5% 10% 12% 14% 16% 18% 10% 12% 14% 16% 18% 100 120 140 100 120 140 Source:CBB, CIO Source:CIO 0% 5% 0% 5% 0% 2% 4% 6% 8% 0% 2% 4% 6% 8% 20 40 60 80 20 40 60 80 0 0 Q1 Q1 Hotels &Rest. Construction Hotels &Rest. Construction Rank Rank

Jan Jan Q2 Q2

12 12 Oct Oct

Economic Economic 2010 2010 13.8% 13.8% Freedom Freedom 2006 2006 2010 2010 Mar Mar Q3 Q3 Nov Nov Q1 Q1 Q4 Q4 2009 2009

24 24 May May Financial Financial Development Development Dec Dec

Jul Jul Q1 Q1 30/138 30/138 15.7% 15.7% 2007 2007 Q2 Q2 Jan Jan Real Est.&Bus.Act. Trade Real Est.&Bus.Act. Trade ICT ICT Sep Sep 2011 2011 readiness readiness Bahraini Bahraini

Nov Nov Q3 Q3 Feb Feb 32 32

Logistics Logistics Jan Jan Q4 Q4 Q2 Performance Performance Mar Mar Q2 10.2% 10.2% 2008 2008 Mar Mar

38 38 Apr Apr Doing Doing May May

Business Business 2010 2010

May May

Jul Jul Non-Bahraini Non-Bahraini 2011 2011 Global 37 Global 37 2.9% 2.9% Competitveness Competitveness 2009 2009 Sep Sep Jun Jun Output growthbyquarter Output growthbyquarter 10% 12% 14% 16% 10% 12% 14% 16% 0% 2% 4% 6% 8% 0% 2% 4% 6% 8% Q3 Nov Nov Q3 40/139 40/139 Jul Jul & Travel & Travel

Tourism Tourism Jan Jan Q1 Q1 Finance Mining &Quarrying Finance Mining &Quarrying Aug Aug Mar Mar Q2 Q2 3.5% 3.5% 2010 2010 2010 2010 42 42 HDI HDI

Sep Sep Q3 Q3 May May 2011 2011 ‐ largesectorsYoY ‐ largesectorsYoY Jul Jul Q4 Q4

46 46 Oct Oct Corruption Corruption Q4 Perception Perception Q4 Sep Sep Q1 Q1 12.6% 12.6% 2011 2011 Nov Nov Government Manufacturing Government Manufacturing Q2 Q2

51 51 Nov Nov 2011 2011

EDI EDI 2012 2012 Dec Dec Jan Jan Q3 Q3 Q4 Q4 -25% -20% -15% 10% 15% 20% 25% -5% Output growthbyquarterYoY 0% 5% increase inpropertymortgages,whichaccountedfor31%ofpersonalloansthisperiod. steady ataround80%.PersonalloanssurgedinQ32011,growingby22%.Thiswasalmostentirelyaccountedforan81% jumped inMarch2011,andremainedhightotheendofyear,withsharecurrencyheldoutsidebanksremaining deposits, whichdippedtowardstheendof2011,butbegantogrowagaininJanuary2012.Similarly,currencycirculation Local currencyasashareoftotalheldinbanksfell,althoughthiswasmostlyresultsurgeforeigncurrency Financial -20% -15% -10% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Consumer PriceIndex(2006=100) Private employmentgrowthfrompreviousquarter Private employmentgrowthfrompreviousquarter 10% Bahrain's WorldwideRankings2011 Current accountas%ofGDP 115 114 113 112 111 110 109 108 107 106 -5% 10% 12% 14% 16% 18% 100 120 140 0% 5% 0% 2% 4% 6% 8% 20 40 60 80 0 Q1 Hotels &Rest. Construction Rank

Jan Q2

12 Oct

Economic 2010 13.8% Freedom 2006 2010 Mar Q3 Nov Q1 Q4 2009

24 May Financial Development Dec

Jul Q1 30/138 15.7% 2007 Q2 Jan Real Est.&Bus.Act. Trade ICT Sep 2011

readiness Bahraini

Nov Q3 Feb 32

Logistics Jan Q4

Performance Mar Q2 10.2% 2008 Mar

38 Apr Doing May

Business 2010

May

Jul Non-Bahraini 10% ofGDP. a largesectoraccountingforalmost is particularlysignificantsinceit with 11%growthfortheyear. This was Transport andCommunication The fastestgrowingsectorin2011 2011 Global 37 2.9% Competitveness 2009 Sep Jun Output growthbyquarter 10% 12% 14% 16% 0% 2% 4% 6% 8%

Nov Q3 40/139 Jul & Travel

Tourism Jan Q1 Finance Mining &Quarrying Aug Mar Q2 3.5% 2010 2010 42 HDI May Sep Q3 2011 ‐ largesectorsYoY Jul Q4

46 Oct Corruption

Perception Q4 Sep Q1 12.6% 2011 Nov Government Manufacturing Q2

51 Nov 2011

EDI 2012 Dec Jan Q3 Q4 Annual Report 2011 Bahrain Economic Development Board 20_21 indices, theKingdomimproveditsrankingorremainedonparwith2010. competiveness, travelandtourism,corruptionperception.Inthemajorityof areas suchaseconomicfreedom,financialdevelopment,doingbusiness,global In 2011,Bahraincontinuedtoperformwellinmajorglobalindicescoveringkey Global Rankings Benchmarking Bahrain Operations Review International FinanceCorporation International published byTheWorld Bankand the 2011DoingBusinessReport worldwide and4thregionallyby Bahrain wasranked38th cooperation withINSEAD World in EconomicForum 2011,producedbythe Report TechnologyGlobal Information Bahrain wasranked30thinThe above theglobalaverage. economic freedomrankingiswell the topregionalspot,andits year thattheKingdomhastaken This isthe18thconsecutive 100 120 140

financial servicesmovedupfrom42ndto36thplace. and financialservicesimprovedthreeplacesto11th,whilenon-banking financial sectorliberalisation,and17thincorporategovernance.Banking 1st overallinthetaxsub-pillar,2nd bankingsystemstability,15th from 2010),andmaintainedits2ndplacetheGulf.TheKingdomranks Economic Forum,Bahrainwasranked24thworldwide(downoneplace In the2011FinancialDevelopmentReport IndexpublishedbyWorld Financial Development efficient regulatoryenvironment. openness toglobalcommerceissustainedbyitscompetitiveand be afinancialhubfordynamiceconomicactivity;whiletheKingdom’s above theglobalaverage.AccordingtoIndex,Bahraincontinues taken thetopregionalspot,anditseconomicfreedomrankingiswell MENA region.Thisisthe18thconsecutiveyearthatKingdomhas economy intheworld(downtwoplacesfrom2010),and1st Foundation andtheWallStreetJournal,rankedBahrain12thfreest The 2011annualIndexofEconomicFreedompublishedbytheHeritage Economic Freedom

Bahrain's WorldwideRankings2011 20 40 60 80

0 ﻟﻠﻤﻌﻠﻮﻣﺎت

51 اﻟﻜﺘﺮوﻧﻲ Rank اﻟﺘﺒﺎدل

Economic 12

Freedom اﻟﻔﺴﺎد

46 ﻣﻜﺎﻓﺤﺔ

Financial 24

Development اﻟﺒﺸﺮﻳﺔ

42 138/30 اﻟﺘﻨﻤﻴﺔ

ICT

139/40 readiness واﻟﺴﻴﺎﺣﺔ اﻟﺴﻔﺮ 32

Logistics

Performance اﻟﻌﺎﻟﻤﻴﺔ 37 اﻟﺘﻨﺎﻓﺴﻴﺔ 38

Doing ا ﻋﻤﺎل

38 Business ﻣﺰاوﻟﺔ 37

Global اﻟﻠﻮﺟﺴﺘﻲ

32 Competitveness 139/40 ا داء

اﻟﺘﺼﻨﻴﻒ اﻟﻌﺎﻟﻤﻲ ﻟﻠﺒﺤﺮﻳﻦ 2011

Travel & 30/138 واﻻﺗﺼﺎﻻت

Tourism اﻟﻤﻌﻠﻮﻣﺎت ﺗﻜﻨﻮﻟﻮﺟﻴﺎ

HDI اﻟﻤﺎﻟﻴﺔ

24 اﻟﺘﻨﻤﻴﺔ 46

Corruption اﻟﺘﺼﻨﻴﻒ

Perception اﻻﻗﺘﺼﺎدﻳﺔ

12 اﻟﺤﺮﻳﺔ 51 EDI 0 20 40 60 80 100 120 140 World BankandInternationalFinance Business Reportpublishedby The and 4thregionallybythe2011 Doing Bahrain wasranked38thworldwide Doing Business tracking andtracing,timeliness. infrastructure, logisticscompetence, 2nd intheGCC,performingwell efficient countryintheworldand Bank, rankedBahrainthe32ndmost (LPI), whichispublishedbyTheWorld The 2011LogisticsPerformanceIndex Logistics Performance government efficiency(12th). e-participation (11th),andincreased basic servicestocitizens(11th),high significantly expandedoutreachof resulted infirst-classe-services(8th), ICT diffusion(ranked14th)hasalso government visionandleadershipin (29th forindividualusage).Thestrong converted tohighpenetrationrates ICT (15th),anaspectthathasalready of preparednessitscitizenstouse environment (9th),andthehighdegree strengths inthequalityofitsmarket Kingdom displayednotablecompetitive Forum incooperationwithINSEAD.The produced bytheWorldEconomic Information TechnologyReport2011, Bahrain wasranked30thinTheGlobal Technology Information &Communications ranked 24thworldwide Economic Forum, Bahrainwas published bythe World Development Report Index In the2011Financial the worldforthirdsuccessive year, as the37thmostcompetitivecountry in In 2011,Bahrainmaintainedits ranking Global Competitiveness Taken toIssueaConstruction Permit. and continuedtoperformwellinTime Contracts, andResolvingInsolvency; Trading acrossBorders,Enforcing a numberofspecificareas,including Kingdom improveditsperformancein enforcement across183economies.The business regulationsandtheir Corporation. TheReportmeasures Economy Networked ReadinessIndex2011* 2. Qatar 1. UAE 4. KSA 3. Bahrain 5. Oman 6. Kuwait • • • * TheNetworkedReadinessIndex(NRI)examineshowpreparedcountriesareto Actual usageofthelatestinformationandcommunicationtechnologies available. businesses andgovernments–tousebenefitfromICT Readiness ofthethreekeystakeholdergroupsinasociety–individuals, General business,regulatoryandinfrastructureenvironmentforICT use ICTeffectivelyonthreedimensions: 138 economies by the World EconomicForum. Competitiveness Index(GCI)published year, accordingtotheGlobal in theworldforthirdsuccessive as the37thmostcompetitivecountry In 2011, Bahrainmaintaineditsranking 2011 2011 rank 25 24 33 30 41 75 compared with2010. and primaryeducation(up5places) efficiency (up14places),and health training (up16places), labourmarket pillars, includinghighereducation and improvement inseveralofthe Index’s and innovation.TheKingdomshowed efficiency, businesssophistication, health, education,labourmarket infrastructure, macroeconomicstability, 12 pillarsofcompetitiveness,covering Economic Forum.TheGCI isbasedon Index (GCI)publishedbytheWorld according totheGlobalCompetitiveness 133 economies 2010 rank 30 23 38 29 50 76 +5 +5 +9 +1 -1 -1 Change ↘ ↘ ↗ ↗ ↗ ↗ Annual Report 2011 Bahrain Economic Development Board 22_23 rankings withthoseofpreviously is misleadingtocomparevalues and 39 outof169countries.However, it rank ofBahrain’sHDIfor2010was increase ofabout0.7percent.The 24 percentoranaverageannual from 0.651to0.806,anincreaseof 2011, Bahrain’sHDIvalueincreased of 187countries.Between1980and positioning thecountryat42ndout HDI valuefor2011was0.806, decent standardofliving.Bahrain’s life, accesstoknowledge,anda development: alongandhealthy three basicdimensionsofhuman assessing long-termprogressin The HDIisasummarymeasurefor ranks for187countries. Development Index(HDI)valuesand HDR presentsthe2011Human Development’ countries.The2011 the categoryof‘VeryHighHuman Kingdom continuestofeaturein Development Programme.The published bytheUnitedNations Human DevelopmentReport(HDR) out of187countriesinthe2011 Bahrain occupiedthe42ndposition Human Development infrastructure. tourism businessenvironmentand was ranked20thfortraveland sub-categories ofthereport,Bahrain in theGCC.Amongvarious the 2ndmostcompetitivecountry The Kingdomretaineditsrankingas the previousreportpublishedin2009. worldwide in2011,uponeplaceon Forum, rankedBahrain40th produced bytheWorldEconomic Competitiveness Report,whichis The TravelandTourism Travel &Tourism Benchmarking Bahrain Operations Review 2011 2010 2005 2000 1995 1990 1985 1980 indicators andnewmethodology Bahrain’s HDItrendsbasedonconsistenttimeseriesdata,newcomponent comparability aspossible,theHDI To ensureasmuchcross-country GCC region. HDI remainsthe3rdhighestin countries wereunavailable.Bahrain’s Index, whenkeyindicatorsformany countries includedinthe2010 a significantincreasefromthe169 ranked inthe2011HDIrepresents has increasedThe187countries countries includedintheHDI,which changed, aswellthenumberof underlying dataandmethodologyhas published reports,becausethe GCC Rank 1 2 3 4 5 6 expectancy at birth Life 75.1 74.9 74.3 73.7 73.0 72.3 71.3 69.6 schooling Expected years of Economy UAE Qatar Bahrain KSA Kuwait 187 economies Oman 13.4 13.4 13.4 13.4 13.6 13.5 13.1 10.0 Means years displayed inthetablebelow. recalculated HDIsfrom1980to2011, in HDIs,the2011reportincludes To allowforassessmentofprogress indicators bythemandatedagencies. of revisionsdonetothecomponent the 2010HDR)becauseofanumber to thoseinpastreports(including this year’sreportarenotcomparable earlier, theHDIvaluesandranksin (UIS) andtheWorldBank.Asstated the UNESCOInstituteforStatistics data fromtheUNPopulationDivision, is basedprimarilyoninternational of schooling 9.4 9.4 9.0 8.3 7.2 6.0 5.2 4.1 (2005 PPP$) 2011 rank 30 37 42 56 63 89 GNI per capita 28,169 27,874 27,102 22,715 21,302 19,302 21,224 31,987 value 0.806 0.805 0.795 0.773 0.750 0.721 0.700 0.651 HDI Bahrain’s HDIindicatorsfor2011relativetoselectedcountriesandgroups components oftheHDI. well inhealthandeducation,twomain The Kingdomcontinuedtoperform HDIs ranked37thand30threspectively. the UnitedArabEmirates,whichhave rank andpopulationsizeareQatar are closetoBahraininthe2011HDI Countries fromtheArabStatesthat 0.641 forcountriesintheArabStates. group, andabovetheaverageof the ‘VeryHighHumanDevelopment’ the averageof0.889forcountriesin Bahrain’s 2011HDIof0.806isbelow increasing theirHDIs. different degreesofprogresstoward United ArabEmiratesexperienced 1980 and2011Bahrain,Qatar,the instance, duringtheperiodbetween assessed relativetoothercountries.For Long-term progresscanbeusefully countries Assessing progressrelativetoother Bahrain Qatar Emirates United Arab Arab States Very highHDI value report publishedin2009. up oneplaceontheprevious Bahrain 40thworldwidein2011, World EconomicForum, ranked which isproducedbythe Competitiveness Report, and TourismThe Travel 0.806 0.831 0.846 0.641 0.889 HDI 12th (up5places)forthequalityofport for efficiencyofcustomadministration; Kingdom ranks12th(upthreeplaces) and thebusinessenvironment.The and communicationsinfrastructure, access, borderadministration,transport which measures fourareas:market includes theEnablingTradeIndex, Enabling TradeReport.Thisreport World EconomicForum’sGlobal and 5thintheMENAregionby Bahrain wasranked30thworldwide Global EnablingTrade Gulf toimproveitsrankings. Kingdom wastheonlycountryin and 3rdintheGCC(uponeplace).The Bahrain 46thglobally(uptwoplaces) International, ranked Index, publishedbyTransparency The 2011CorruptionPerception Corruption Perception rank HDI 42 37 30 - - expectancy at birth Life 75.1 78.4 76.5 70.5 80.0 schooling Expected years of 13.4 12.0 13.3 10.2 15.9 places to33rd. improving itsglobalrankingbyseven to exportgoodsfrom14 11days, to reducethenumberofdaysittakes framework. TheKingdomwasalsoable transparent andefficientinstitutional to 10thworldwide,drivenmainlybyits for regulatoryenvironmentby15places addition, Bahrainimproveditsranking for airtransportportinfrastructure.In infrastructure; and17th(upthreeplaces) schooling years of Mean 11.3 9.4 7.3 9.3 5.9 (PPP US$) GNI per 107,721 capita 28,169 59,993 33,352 8,554 Annual Report 2011 Bahrain Economic Development Board 24_25 health andhousing. was madeincontinuingBahrain’smajorreformprogrammeseducation, aligning initiativeswiththe2011-2012Budget.During2011,furtherprogress NES 2011-2014continuesthejourney,respondingtolatestchallengesand towards realisingtheaspirationsofBahrain’sEconomicVision2030.Thesecond Launched in2009,thefirstNationalEconomicStrategy(NES)startedjourney Implementing TheSecondNationalEconomicStrategy Major ReformInitiatives Operations Review more teachingtimethanbefore. Bahrain nowreceive25percent schoolsin Students insecondary bestpractice. and international Mathematics andScienceStudy) TIMSS (Trends inInternational aligned totherequirementsof hasbeenrevisedand curriculum The existingmathematics of examinationsforyear12. programme, withtheintroduction the nationalexaminations continued toimplement During 2011,theQAAET 6. 5. 4. 3. 2. 1. term improvementoftheschoolsystem: Education ReformBoardin2011.Itidentifiessixkeyareasfor thelong- The finaldraftofBahrain’sSchoolAgendawasapprovedby the Bahrain’s SchoolAgenda Education ReformBoardtwice-yearlyonprogress. responsible forimplementationofthestrategy,andreportsto the The newly-reformedHECBoard,ledbyanewGeneralSecretary is information systemtomonitorandevaluateuniversityperformance. research strategy,andthedevelopmentofadata-ledmanagement goals. Inparticular,theseincludetheestablishmentofanational the EducationReformBoard,andconcreteactiononeightstrategic date includesthesuccessfuldevelopmentandapprovalofstrategyby focus fordevelopmentofthesectorovernextfiveyears.Progressto expectations forBahrain’shighereducationsystem,andprovidesthe create high-rankingworldclassuniversities.ItsetsouttheGovernment’s Council (HEC)andlaythefoundationsforchange,Strategyaimsto developed ayearearlier,whichsoughttoreformtheHigherEducation education sector.FollowingonfromtheHigherEducationAgenda develop andimplementastrategicimprovementplanforthehigher The purposeofthisStrategy,whichwaspublishedinMay2010,isto National HigherEducationStrategy improvement, vocationaltraining,andqualifications. initiatives wereimplementedintheareasofhighereducation,schools Kingdom’s educationalreformprogramme.Anumberofkey Excellent progresswasachievedduring2011inadvancingthe Education century classrooms development to ensurethatteachersarefully equippedtoteachin21st Providing extensiveandrelevant continuousschoolsprofessional Ensuring thatthesystemrecruits thebestpossibleteachercandidates Enhancing schoolleadership Improving theMinistryofEducation’s performance Reforming thecurriculumand improving studentoutcomes Increasing teachingtimeandaddressingpoorperformance clear movement betweencourses,and ‘level’ intheframework,which enables will placeallqualificationsat the correct 2010 andfundedbyTamkeen in 2011.It first withintheGCC,wasdeveloped in This initiative,whichisconsidered the (BQF) Bahrain QualificationsFramework linked toaqualificationsframework. country tohaveoccupationalstandards This stepmakesBahrainthefirstGCC successful implementationoftheBQF. standards thatareessentialforthe on theimplementationofoccupational HCVT hasmadesubstantialprogress the needsofadiversifiedeconomy.The highly skilledworkforceabletomeet system providestheKingdomwitha that Bahrain’seducationandtraining will createablueprintforensuring ‘Bahrain’s EmployabilityAgenda’,it Board intheautumnof2012.Nowtitled submission totheEducationReform Agenda iscurrentlybeingpreparedfor complementary. Thefinaldraftofthis vocational educationandtrainingare proposals forhighereducationand Training (HCVT),toensurethat and theHighCouncilforVocational Qualifications Framework(BQF) with developmentsintheBahrain paid tothealignmentofstrategy consultation. Particularattentionwas refined in2011followingsubstantial draft in2010,thisAgendawasfurther Following thepublicationoffirst Agenda Vocational EducationandTraining Arabic Literacystrategy. of wholecurriculumreformincludingan strategy, andcommenceddevelopment has launchedanationalnumeracy extended; andtheMinistryofEducation the Secondaryschooldayhasbeen agenda. Mostnotably,thelengthof achieved intheimplementationof Significant progresshasalreadybeen universities. high-ranking worldclass the Strategyaimstocreate lay thefoundationsforchange, Education Council(HEC)and sought toreformtheHigher developed ayearearlier, which The HigherEducation Agenda and focusedmonitoring visits. conducted aseriesoffollow-up reviews a newreviewframework,and has institutions, theQAAEThasestablished made byunderperformingschools and progress towardsimprovement isbeing institutions. Inordertoensure that improve underperformingschoolsand to putinplaceconcreteactions licensing bodiesandfundingagencies, been signedbetweentheQAAETand memoranda ofunderstandingshave Specific arrangementsintheformof totalling 12inBusinessand5Law. reviews havealsobeenconducted, universities. Specificprogramme 90 vocationalinstitutes;andall12 schools; 80outofapproximately been conductedforall203public was finalised.Todate,reviewshave review oftheUniversityBahrain During theyear,acomprehensive to privateschoolsintheKingdom. programme ofassessmentsandreviews 2011, theAuthorityextendedits examinations foryear12.InMarch programme, withtheintroductionof implement thenationalexaminations During 2011,theQAAETcontinuedto Education &Training(QAAET) The QualityAssuranceAuthorityfor to beplacedontheBQ. qualification offeredinBahrainwillhave It isplannedthatwithin5years,every and approvalbeganinJanuary2012. phase forqualificationdevelopment & Training(QAAET),andthepilot Assurance AuthorityforEducation been establishedwithintheQuality and associatedpolicies.TheBQFhas in 2011,withapprovaloftheframework first phaseoftheBQFwascompleted accumulation andtransfersystem.The of priorlearning,andaunifiedcredit clear mechanismfortheaccreditation applied. TheBQFwillalsoprovidea each qualificationtypeareagreedand ensures thatcommonstandardsfor roll-out oftheprogramme. full-time trainingtoensureasuccessful been identified,andtheyhave received 6. Atotalof30Bahrainicoaches have school mathcurriculumforgrades1to lesson plansfortheentireprimary have writtenatotalof1,000prescriptive best practice.Ateamof12experts and ScienceStudy)international (Trends inInternationalMathematics aligned totherequirementsofTIMSS curriculum hasbeenrevisedand matter. Theexistingmathematics has beendevelopedtoaddressthis the NationalSchoolNumeracyStrategy functionally innumerate.Accordingly, of Bahraini14year-oldsdeemedtobe averages, withmorethan50percent are verylowcomparedtointernational literacy andnumeracylevelsinBahrain International studieshaveshownthat National SchoolNumeracyStrategy than before. receive 25percentmoreteachingtime in secondaryschoolsBahrainnow increasing toover900peryear.Students resulted inthenumberofschoolhours way examinationsareconducted,has school day,inadditiontochangingthe 635 hoursperyear.Lengtheningthe Previously, Bahrainischoolsofferedonly and 1000hoursofinstructionperyear. OECD average,whichisbetween900 similar amountofschoolingtothe in ordertogiveBahrainistudentsa the schoolyear.Thisstepwastaken 300 additionalhoursofinstructionto teaching, hasaddedapproximately examination preparationdaysto in additiontothere-assigningof time hasbeenaddedperdaywhich, additional 45minutesofinstructional secondary schoolswasextended.An During 2011,theschooldayofall Extension oftheSchoolDay Annual Report 2011 Bahrain Economic Development Board 26_27 Health tosetpriorityinitiatives. This EDB andofficialsattheMinistry of discussions wereheldbetween the healthcare system,extensive Following thisassessmentofthe coverage, governanceanddelivery. 2005, coveredfourareas:funding, on athoroughstudyconductedin The diagnosticstudy,whichbuilds international healthcaresystems. comparison withregionaland Bahrain’s healthcaresystemin the strengthsandchallengesof study whichidentifiedandexamined Agenda beganwithadiagnostic The developmentprocessofthe identified. implementation oftheinitiatives 2011, stepsweretakentobegin the secondhalfof2010.During initiatives, wasdevelopedduring system througharangeofreform performance ofBahrain’shealthcare strategic directionforimprovingthe set outstheMinistryofHealth’s Bahrain’s HealthcareAgenda,which Bahrain’s HealthcareAgenda Health being plannedforEnglishliteracy. based uponthenumeracymodel,is literacy strategy,asimilarstrategy of 2012.TocomplementtheArabic teachers isplannedfortheautumn the Arabicsyntaxandgrammarof language. Specifictrainingtoimprove that studentsareimmersedinthe ha ratherthanlocaldialecttoensure foreign languageclasses)usingfos- all teachers(withtheexceptionof of theexistingcurriculum,willsee strategy, whichincludesarevision develop high-levelliteracyskills.The to ensurethatyoungBahrainis began in2011andisdesigned Development ofanArabicstrategy National SchoolLiteracyStrategy Major ReformInitiatives Operations Review (NHRA). Healthcare RegulatoryAuthority healthcare regulator,theNational newly establishedindependent with thestandardstobesetby the Accreditation Canada,andcomplying of MinistryHealthfacilitiesby to maintainingtheaccreditation sector, particularlywithrespect developments toreformthehealth Agenda buildsonrecent Furthermore, Bahrain’sHealthcare • • • • • • Bahrain’s healthsector: six strategicobjectivestoreform Agenda. TheAgendafocuseson specified inBahrain’sHealthcare Development Boardtothereforms of HealthandtheBahrainEconomic Government officialsattheMinistry documentation ofbuy-inbysenior The actionsaboveledtothe 2011-2012. of Health’sbudgetsubmissionfor Strategy 2011-2014,andtheMinistry but alsowiththeNationalEconomic officials attheMinistryofHealth, study andperspectivesofsenior recommendations ofthediagnostic are alignedwithnotonlythe Agenda. Thesereforminitiatives development ofBahrain’sHealthcare set ofreforminitiativestoguidethe in turnledtoanagreementona sustainability Ensuring healthservice governance Health’s roleinpolicymakingand Enhancing theMinistryof healthcare services, Providing accessforeveryoneto Putting qualityfirst, health system Integrating servicesthroughoutthe prevention through healthpromotionand Sustaining thepopulation’shealth • • • • • • • initiatives: the MinistryofHealthforseveralkey Economic DevelopmentBoardand were developedjointlybythe During 2011,implementationplans been initiated. prepare forimplementationhave Accordingly, preliminarystepsto for implementationprogress. each initiativeandbeaccountable within theMinistrywhowillsponsor Health hasidentifiedseniorofficials of theinitiatives,Ministry accountability forimplementation above strategicobjectives.Toensure initiatives underlyingeachofthe are committedtofulfillingthereform Officials attheMinistryofHealth healthcare system. series ofchangestoreformBahrain’s national levelinordertointroducea stakeholders intakingactionata a basistoencouragenumberof HRH theCrownPrince,hasformed Executive Committeechairedby the EconomicDevelopmentBoard senior Governmentofficialswithin was approvedinDecember2010by Bahrain’s HealthcareAgenda,which private sector Establishing partnershipswith the Authority the NationalHealthRegulatory Supporting theestablishment of international bestpractice Salmaniya MedicalComplex’swith Aligning thegovernanceof role inpolicymaking Enhancing theMinistryofHealth’s complies withNHRArequirements Ensuing theMinistryofHealth institutions the MinistryofHealthandother Integrating servicesbetween Ministry ofHealth Integrating serviceswithinthe with implementation plannedtostartin of Housingwasdevelopedin2011, A newsix-yearstrategyforthe Ministry New HousingStrategy three years. units isplannedtobecompletedwithin in theyear.Constructionofhousing agreement isexpectedtobesignedlater signed inJanuary2012,andthefinancial concession agreementwasofficially Town, AlBuhair,andLawzi.The different locationsatNorthBahrainNew and 1,000affordablehomesinthree to build3,110socialhousingunits agreement withBahrain-basedNaseej approved alandmarkBD208million for socialhousing.In2011,theMinistry incomes, andreducethewaitinglist homes forcitizensonlow-to-medium- plans toaddresstheneedfor50,000 as partoftheMinistryHousing’s in theGCC),waslaunched2010 housing project(andthefirstofitskind Partnership (PPP)socialandaffordable The Bahrain’sfirstPublic-Private- & AffordableHousing Public-Private-Partnership forSocial 2011. key initiativeswereimplementedduring waiting listforhousing.Anumberof affordable homes,andtoshorteningthe providing Bahrainicitizenswith The Governmentiscommittedto Housing rise inmedicalcosts. health professionals,andtheexpected and agingpopulation,theshortageof communicable diseases,thegrowing as theincreasingincidenceofnon- opportunity toaddresschallengessuch Agenda initiativesprovidesan Implementing Bahrain’sHealthcare • model Adopting anewhealthcarefinancing private sector. greater participationbythe sustainable manner, andwith planned anddeliveredina developments areeffectively help ensurethatfuturehousing Ministry asapolicy-maker;and will strengthentheroleof The newHousingStrategy by relevantentitiesincludingCouncil of on draftlawsandregulationsproposed In addition,theEDBprovidesopinion amending existinglawsandregulations. government agenciesinreviewing and in coordinationwithministries and investment inBahrain;andworks related tobusiness,economyand reviewing newlawsandregulations The EDBassistsindraftingand Legal FrameworkandGovernance China. investors fromtheGCC,Turkeyand property developers,aswellpotential Attendees includedlocalandregional opportunity forbusinessnetworking. housing PPP,aswellprovidingan as Bahrain’sfirstsocialandaffordable forum discussedkeydevelopmentssuch area ofsocialhousinginBahrain.The has beenaccomplishedtodateinthe of Housing,toshowcasetheworkthat 2011, incollaborationwiththeMinistry The EDBorganisedaHousingForumin Social HousingForum based financingsystem. from apublic-sectorbasedtomarket- for thecitizensofBahrain,bymoving and affordablehousingfinancesystem objective isthecreationofasustainable secondary financialmarkets.Akey encompassing boththeprimaryand complete mortgagefinancesystem purpose oftheMGSistocreatea study wasre-initiatedin2011.The A MortgageGuaranteeSystem(MGS) Mortgage GuaranteeSystem participation bytheprivatesector. sustainable manner,andwithgreater effectively plannedanddeliveredina that futurehousingdevelopmentsare as apolicy-maker;andhelpensure will strengthentheroleofMinistry early 2012.ThenewHousingStrategy • • • • • the following: Key achievementsduring2011include Representatives andShuraCouncil.

first issuedin2008 Bahrain LegislationsCDwhich was Commencing theupdateof to internationalbusinesstransactions aims atunifyingtherulesapplicable the InternationalSaleofGoods, which and theConventiononContractsfor enhancing thebusinessenvironment; Apostille Convention,whichaimsat Following upontheenactmentof - - - - such as: to business,economyandinvestment, assisting indrafting,newbillsrelated Providing legalopinionon,and - - - - - These draftbillsincludethefollowing: drafted byEDBwithconcernedbodies. Following uptheissuanceofbills - - - - Kingdom, suchas: economy andinvestmentinthe regulations relatedtobusiness, Drafting andreviewinglaws of BuiltRealEstate Draft LawregulatingOff-PlanSale Tourism Authority Draft LawestablishingBahrain Chamber ofCommerceandIndustry Draft LawwithrespecttoBahrain Transactions Law Draft LawamendingElectronic owned lands Draft regulationonleasingstate- Corruption inthePrivateSectorLaw Computer CrimesLaw Data ProtectionLaw Competition Law Draft LawonLeaseofPremises Draft LawonArbitration Draft LawonConflictofLaws Companies Law Draft LawamendingCommercial Annual Report 2011 Bahrain Economic Development Board 28_29 ranks for187countries Development Index(HDI)valuesand HDR presentsthe2011Human Development’ countries. The 2011 in thecategoryof ‘Very High Human The Kingdomcontinuestofeature 42 position 187 countries. Development Index (HDI)valuesandranksfor The 2011HDRpresents the2011Human ‘Very HighHumanDevelopment’countries. continues tofeatureinthecategoryof Development Programme.TheKingdom Report (HDR)publishedbytheUnited Nations countries inthe2011HumanDevelopment Bahrain occupied the42ndpositionoutof187 between 900and1000hoursofinstructionperyear. Bahraini studentsasimilaramountofschoolingtotheOECD average,whichis of instructionwasaddedtotheschoolyear.Thissteptaken inordertogive During 2011andthefirstsemesterof2012,approximately300 additionalhours Annual Report 2011 Bahrain Economic Development Board 30_31 Kingdom’s economy,andgeneratearound850jobsoverthenextthreeyears. and security.TheyareexpectedtocontributecloseUS$300millionthe financial services,legaloilandgas,chemicals,plastics,firesafety of Bahrainin2011.Thesecompaniesareengagedkeysectorsincluding successful inattracting18foreigncompaniestosetupbusinesstheKingdom Through aconcentratedbusinessdevelopmentprogramme,theEDBwas Business Development Foreign DirectInvestment Attracting andNurturing Operations Review the Kingdom. Security tosetupoperationsin Technology andUTCFire& Industries, RMA,Swinton such asBASF, DLAPiper, JBF several leadingglobalcompanies Was acatalystthatencouraged established business environment. fundamentals andwell- Bahrain’s soundeconomic India, ChinaandKorea. UK, Germany, France,Belgium, global geographiesspanningthe direct marketingcampaignsinkey In 2011,theteamconductedeight the teamconducted researchintokeysectors suchasaluminium,steel, attract newforeign directinvestment(FDI)to theKingdom.Inaddition, sector stakeholderstoidentify waysofworkingcloselytogetherto issues. Theteamalsointeracted withvariouskeyprivateandpublic expansion plans,andofferedassistance totackleanybusiness-related and wereaskedaboutthecurrent statusoftheiroperationsand businesses inBahrain.Atotal of 400companieswerecontacted, through makingdirectcontact withvariousestablishedforeign During theyear,teamexpandeditsannualAftercareprogramme operations intheKingdom. Industries, RMA,SwintonTechnologyandUTCFire&Security tosetup several leadingglobalcompaniessuchasBASF,DLAPiper, JBF environment. Thissolidfoundationwasacatalystthatencouraged Bahrain’s soundeconomicfundamentalsandwell-established business economy, foreigninvestorsvisitingBahrainwerefirst-hand witnesses to in 2012.Despitetheeffectsofunfortunateincidents2011 onthe demonstrated seriousinterest,orareinprogressoffinalising registration to secure4newinvestmentsBahrain.Afurther9companies have India, ChinaandKorea.With83meetingsintotal,theteammanaged key globalgeographiesspanningtheUK,Germany,France,Belgium, In 2011,theteamconductedeightdirectmarketingcampaignsin business andinvestmentenvironment. who contacttheEDBdirectlytoseekinformationaboutKingdom’s basis, theteaminteractswithcompanieseitheronvisitstoBahrain,or relationships generatedbyEDB’sinternationaloffices.Onareactive targeted directmarketingcampaignsandroadshows,through sectors. Theteaminteractsproactivelywithforeigncompaniesvia approach totargetingforeigncompaniesintheservicesandindustry The Services&Industryteamadoptsbothaproactiveandreactive Services &Industry Relations. & Industry,FinancialServices,InternationalRelationsandInvestor of dedicatedspecialistteamscoveringkeyareassuchasServices The EDBconductsitsbusinessdevelopmentactivitiesthroughanumber Business DevelopmentActivities were alsoconducted inDubai,Dublin, interviews. Directmarketingcampaigns of NorthAmerica),seminars,and media ABANA (theArabBankersAssociation individual companies,anevent with The visitalsoinvolvedmeetings with the annualIMF/WorldBankmeetings. Chicago. Theroadshowcoincidedwith in WashingtonDC,NewYork,and Investcorp, totheUnitedStates,taking (CBB) andtheCEOsofCitibank Governor oftheCentralBankBahrain financial servicessectorincludingthe comprising keyindividualsfromthe was afinancialservicesroadshow, and conferences.Akeyhighlight and participationinexhibitions several directmarketingcampaigns, initiatives, includingaroadshow, a numberofoverseasmarketing During 2011,theteamimplemented public andprivatesectors. initiatives incollaborationwiththe the industrywithinBahrainthrough Bahrain. Theteamalsoworkstodevelop foreign financialinstitutionstolocatein services sectorabroad,andattracting on promotingBahrain’sfinancial The FinancialServicesteamfocuses Financial Services for Investment. ultimately identifiedkeyopportunities the localvaluechainofeachsector,and research notedglobaltrends,identified plastics, chemicalsandICT.This safety andsecurity. gas, chemicals, plastics, andfire services, legalservices, oiland in keysectorsincludingfinancial These companiesareengaged Kingdom ofBahrainin2011. to setupbusinessinthe attracting 18foreigncompanies the EDBwassuccessfulin development programme, Through aconcertedbusiness Conferences, the teaminitiatedthe in partnershipwithEuromoney can networkandshareideas.Secondly, and createanenvironmentwhere firms which istodevelopthefinancial sector specific workinggroups,theaim of Bahrain. In2011,theteamset up sector- external industryparticipantsto and developthesector,bringing creating forumsforlocalfirmstomeet The teamalsohasaninwardfocuson and DeloitteCorporateFinance. AMP CapitalInvestors,CanaraBank, up operationsinBahrain.Theseinclude prestigious financialservicesfirmstoset contributed toattractinganumberof These variousmarketinginitiatives robust financialandeconomiccondition. major ratingagenciesaboutBahrain’s trip alsoinvolvedpresentationstoallthe operating environmentinBahrain.This and support,theadvantageous of theEDB’songoingcommitment operations inBahraintoassurethem the seniormanagementoffirmswith and NewYork.Thedelegationvisited the CEOofEDBtoLondon,Paris trip withtheGovernorofCBBand participated inadedicatedretention February andMarch,theteamalso Following theunrestinBahrainduring sector firms. senior managementofglobalfinancial and Paris,wheretheteammetwith Hong Kong,Taiwan,London,NewYork network andshareideas. environment wherefirmscan financial sectorandcreatean aim ofwhichistodevelopthe specific workinggroups, the In 2011, theteamsetupsector- 2011 obtain feedbackofwherethefirms programme fornext50.Theaim isto largest entities,andanannual call bi-annual callprogrammeforthe 30 based inBahrain.Thisconsists ofa for internationalfinancialinstitutions Relationship Managementprogramme established acomprehensive Also duringtheyear,team growth withinthissegment. finance firmstofurtherencourage existing processoflicensingcorporate industry andtheCBBonrevising as ajurisdiction;andworkingwith structures andBahrain’sattractiveness Law toincreaseboththeuptakeoftrust updating theexistingFinancialTrusts structures forprivateequityfunds; general partner/limitedpartnerfund cell companylegislation;introducing authorisation; developingprotected consistency offundregistrationand These includeimprovingthespeedand the industryandEDBlegalteam. working inclosecollaborationwith initiated bytheteamduringyear, the financialsectorinBahrainwere A numberofprojectstoenhance financial serviceshub. credentials asaleadingregional Bahrain, andtoreinforcetheKingdom’s significant publicityandcoveragefor This conferenceisexpectedtogenerate which willtakeplaceinMarch2012. first GCCPrivateBankingConference, Annual Report 2011 Bahrain Economic Development Board 32_33 sides. between interestedpartiesfrom both generated fortybusinessmeetings seminars inIstanbulandAnkara, and countries, includedtwobusiness solidified tradetiesbetweenthetwo of Turkey.Thishistoricvisit,which Development Board,totheRepublic and ChairmanoftheEconomic Hamad Al-Khalifa,theCrownPrince Royal HighnessPrinceSalmanBin delegation thataccompaniedHis of meetingsforanofficialbusiness the EDBdevelopedaprogramme In additiontotheseroadshows, Meetings Cities Country 2011 CEO oftheEDB. Mohammed BinEssaAlKhalifa,the The mainguestspeakerwasSheikh economic andpoliticaldevelopments. Bahrain toupdatethemonthelatest the teamheldaneventforbanksin Bahrain AssociationofBanks(BAB), Additionally, inassociationwiththe CBB andEDBseniormanagement. annual reportthatwassenttothe 200. Thefindingswerecollatedinan total interviewsamountingtoover of interviewswitheachfirm, team conductedtwotothreerounds even moreattractivejurisdiction.The & EDBcanimproveBahrainasan and alsoidentifyinghowtheCBB understanding theirplansforBahrain, believe themarketisheading, Foreign DirectInvestment Attracting andNurturing Operations Review 57 Phoenix USA February 45 New York Baltimore Washington USA June 135 Minneapolis Long Beach Los Angeles USA October • • • three coreresponsibilities: Relations teamin2011.Thehas The EDBexpandeditsInvestor Investor Relations • Roadshow strategyaimedat: of BahrainthoughanewEDB plan fortheinternationalpromotion worked onredevelopingthe2010 international presence,theteam In additiontomanagingtheEDB’s and Austria. focused onGermany,Switzerland, in Europewithanewresource The EDBalsoexpandeditspresence Japan, India,China,andtheUSA. presence, whichcoversEurope, aim ofmanagingEDB’sinternational was establishedin2011withthe A newInternationalRelationsteam International Relations operations fortargetedsectors Surveying andperformingaftercare established foreigninvestments and ensurebusinesscontinuityfor and follow-upstoretrieverequests Managing governmentrelations their businessoperations establishment procedurestobegin Assisting foreigninvestorsinthe Promoting Bahrain 57 Birmingham London Manchester UK October 155 Rome Milan Italy November regulators. and expeditingprocesseswith key companies withlegalformation interaction wasaimedatassisting service andindustrysectors.This new companiesthatspannedvarious The teamalsointeractedwith48 effort tomaintaintheirlocalpresence. faced byregisteredcompaniesinan effort intacklingaround152issues addition, theteamplacedextensive legal presenceof18companies.In facilitated theestablishmentand During 2011,theteamsuccessfully Roadshows in2011: markets. TheEBDconductedseven EDB visitedanumberofkeyglobal business groupswithwhomthe Bahrain tobringtogetherprestigious business societiesandNGOsin Chamber ofCommerce&Industry, the EDBworkedwithBahrain To bringthe2011Strategytofruition, • • Kingdom joint ventureprojectsforthe markets, andthroughidentifying expansion opportunitiesinglobal private Bahrainibusinessesthough Developing newopportunitiesfor opportunities forforeigninvestors Highlighting keyinvestment 71 Paris France November 123 Munich Dusseldorf Essen Berlin Germany November operation, whichisexpectedto make and trainingofBahrainisforthe new and theEDBtosupportemployment signed anagreementwithTamkeen operational bytheendof2012.BASF tons, theplantisplannedtobefully an annualcapacityof16,000metric largest ofitskindintheworld,with (CSB). Consideredtobeoneofthe customer specificantioxidantblends the plantwillmanufacturearangeof investment intheMiddleEasttodate, Constituting thecompany’slargest International InvestmentPark(BIIP). manufacturing plantattheBahrain took thedecisiontoestablishanew The Germanchemicalsgiant,BASF, BASF billion. portfolios, worthoverAustralian$124.8 equities, multi-managerandmulti-asset infrastructure, fixedincome,active international investorsinrealestate, for Australian,NewZealandand AMP Capitalmanagesinvestments with over50years’experience. Pacific’s largestinvestmentmanagers, Middle East.ThecompanyisoneofAsia as thelocationofitsfirstofficein In 2011,AMPCapitalchoseBahrain AMP CapitalInvestors over thenextthreeyears. economy, andgeneratearound850jobs US$300 milliontotheKingdom’s expected tocontributeapproximately and firesafetysecurity.Theyare services, oilandgas,chemicals,plastics, sectors includingfinancialservices,legal These companiesareengagedinkey in theKingdomofBahrain2011. 18 foreigncompaniestosetupbusiness The EDBwassuccessfulinattracting New ForeignDirectInvestment China, andtheUSA. covers Europe, Japan, India, international presence, which with theaimofmanagingEDB’s team wasestablishedin2011 A newInternationalRelations with operationsinEurope,Australia, headquartered intheUnitedStates and A leadingoilandgasservices company Enerflex ambitious internationalgrowthplans. the MiddleEastwithclientswhohave long-standing relationshipsthroughout leisure, andhealthcare.DLAPiperhas real estate,construction,tourism, government relations,privateequity, and technology,employment,global and gas,banking,intellectualproperty a widerangeofindustriesincludingoil and publicsectororganisationsacross service businesslawadviceforprivate practitioners inBahrainprovidefull- offices ineveryGCCcountry.Thefirm’s it theonlyinternationallawfirmwith full-service officeinearly2011,making its operationsinBahrainbyopeninga countries, DLAPiperdecidedtoexpand with 4,200lawyersand77officesin31 The world'slargestgloballawfirm, DLA Piper representative officeinSharjah,UAE. has ajointventureinMoscowand and Shanghai.Inaddition,thebank overseas branchesintheUK, HongKong 3,400 branchesacrossIndiaaswell was foundedin1906,andhasover Government ofIndia,CanaraBank region. Withamajorityholdingbythe for thebank’sexpansionplansin corporations, andwillalsobethebase will offerarangeofproductsforIndian location intheGCC.Thenewbranch which isitsfirstfullyoperational banking branchinBahrain2011, Canara Bankopenedawholesale Canara Bank economic diversification. a significantcontributiontoBahrain’s world’s largesttransferagent. Computershare ofAustralia–the joint venturebetweenKarvyand Hyderabad, India,KCPLisa50:50 and mutualfunds.Headquarteredin over 900issuers,includingbanks,PSUs 67 millioninvestoraccountsspread the companycurrentlyservicesover With aworkforceofover2,500people, and amongthetopfiveinworld. market. KCPLisIndia’slargestregistrar and officiallyenteredtheMiddleEastern in BahrainSharesRegistryCompany, Limited (KCPL)acquiredamajoritystake In 2011,KarvyComputersharePrivate Karvy Computershare 9,000 tonsinthefirstphase. an estimatedproductioncapacityof be completedinearly2013.Itwillhave will create300newjobs,isexpectedto Construction ofthenewfacility,which and foodpackagingmaterials. in themanufacturingofelectronics, Bahrain toproducepolyesterfilmused a US$200millionplasticsfactoryin of US$1.5billion.JBFisconstructing people, andwithsalesrevenuesin2011 Mumbai, employingmorethan2,500 a publiclylistedcompanybasedin Founded in1982,JBFIndustriesis JBF Industries engineering andfabricationservices. strategy, andwillengagelocal Bahrainis aspartofitsoperational The companyisinvestingintraining to targetfurtherregionalexpansion. use itsoperationalpresenceinBahrain with TatweerPetroleum.Enerflexwill following theawardofaservicecontract established anofficeintheKingdom Asia andtheMiddleEast,Enerflexhas Annual Report 2011 Bahrain Economic Development Board 34_35 export around95percentofoutput. to generateover100newjobs,and gas sector.Theplantisexpected and t-pipefittingsfortheoil pipeline inspectiongauge(PIG)traps, square metrefacilitywillproduce expected forlate2012.The10,000 November 2011,withcompletion International InvestmentParkin manufacturing plantattheBahrain construction ofanewBD2.3million Middle Eastsubsidiarycommenced across theglobe.Thecompany’snew Europe andrepresentativeoffices equipment, withthreeplantsin leading manufacturersofpipeline has growntobecomeoneofthe in 1969,RMAPipelineEquipment Established inRheinau,Germany RMA MiddleEast Foreign DirectInvestment Attracting andNurturing Operations Review aerospace industries.Thecompany globally inthebuildingand to morethanonemillioncustomers technology productsandservices security solutionsaswellhigh which providesfiresafetyand United TechnologiesCorporation, UTC Fire&Securityisabusinessof Headquartered inConnecticut,US, UTC Fire&Security ongoing systemssupport. installation, commissioningand clients acrosstheGCC,providing Technology MiddleEastwillservice in Bahrainduring2011.Swinton established itsregionalheadquarters system solutionsandservices, flow meteringcomputer/control leading globalsupplierofoilandgas UK-based SwintonTechnology,a Swinton Technology logistics functions. service, sales,technicalsupportand the region,localisingcustomer the securityproductsbusinessin because Bahrainservesasahubfor centre. Thisdecisionwasmade a business-to-businessservice range ofsecurityproductsfrom convenient andeasyaccesstoa shop toprovidecustomerswith 2009, whenitopenedaProExpress UTC hasoperatedinBahrainsince users andconsultantsintheregion. employees, businesspartners,end training forprofessionals,Bahraini skills forfireandsecurityproduct will provideworld-classprofessional approximately 6,000squarefeet.It centre inBahrain2011,occupying established astate-of-the-arttraining Rankings Work anddoBusiness|Global Bahrain -AmongthebesttoLive, United NationsDevelopmentProgramme Report (HDR) Human Development Human Development 42 The WorldBank Index Logistics Performance 32 12 Journal and theWallStreet The HeritageFoundation in theworld Freest economy th nd nd 24 Transparency International Index Corruption Perception Corruption Perception 46 Corporation. International Finance The WorldBankand Doing Business 38 Forum The WorldEconomic Financial Development

th th th

Report. Global EnablingTrade World EconomicForum’s Global EnablingTrade 30 Index Global Competitiveness Country Most Competitive 37 with INSEAD in cooperation Economic Forum The World Technology Communications Information & 29 th th th 36 _37 Bahrain Economic Development Board

EDB was successful in attracting 18 foreign US $ 300 m companies to set up business in the Kingdom of Bahrain in 2011. These companies are Newly attracted foreign companies engaged in key sectors including financial are expected to contribute close to US$300 million to the Kingdom’s services, legal services, oil and gas, chemicals, economy, Newly attracted foreign companies are expected to create around 850 jobs over the plastics, and fire safety and security. They are next three years. expected to contribute close to US$300 million to the Kingdom’s economy, and generate around 850 jobs over the next three years. Annual Report 2011 Bahrain Economic Development Board 38_39 advantages asaninvestmentandbusinessdestination. investment (FDI)decisionmakersandinfluencers,toensurethattheyunderstandBahrain’s The EDBseekstocreateapositivepredispositiontowardsBahrainbyseniorforeigndirect shows andinvitingbusinessdelegationsmediarepresentativestovisittheKingdom. Bahrain asanattractivedestinationforforeigninvestmentbyconductinginternationalroad Throughout 2011,theEDBmaintaineditsimportantroleofincreasingglobalawareness GLOBAL COMMUNICATIONS Flying theFlagAbroad Operations Review business destination. advantages asaninvestmentand they understandBahrain’s and influencers,toensurethat investment (FDI)decisionmakers Bahrain byseniorforeigndirect positive predispositiontowards The EDBseekstocreatea visitors. and international growing numberoflocal,regional 100 exhibitorsandattractinga MENA region,featuringover the mainboatingeventsin show hasdevelopedintooneof November 2011.Thisfour-day at AmwajIslandsduring (BSSI)washeld International The thirdBahrainBoatShow political changesshapingtheMENAregion. Mohammed’s panel,duringwhichheshedlightontheeconomic and into Davos2011.Inadditiontalkingpointswereprovidedfor Shaikh for thedurationofCNN’scoverageevent,offeringviewers insight CNBC Arabia.TheEDBalsosponsoredaseriesofvignetteswhich aired and HERashidAlMaraj,GovernoroftheCentralBankBahrain (CBB)– Washington PostandtheNewYorkTimes/InternationalHeraldTribune; Executive oftheEDB–CNBCArabia,Europe,BBCCNN, by theEDBincluded:ShaikhMohammedbinEssaAlKhalifa,Chief this prestigiousinternationalevent.Interviewsandcoverageorganised coordinated andsupportedmediainterviewstoraiseBahrain’sprofileat World EconomicForumatDavos,Switzerland,inJanuary2011.TheEDB A highlevelBahraindelegationattendedthe41stannualmeetingof World EconomicForum-Davos the Kingdom,suchasBahrainBoatShowInternational. Relations. Inaddition,theEDBcontinuedtosponsormajoreventsheldin 10th InternationalEntrepreneurshipForum,andtheCouncilonForeign Conference and18thWorldIslamicBankinginBahrain,the International inMonaco,WorldIslamicCapitalMarkets&Funds East inJordan,IMF/WorldBankmeetingstheUS,FundsForum events duringtheyear.TheseincludedWEFDavos,Middle The EDBattendedandaddressedanumberofkeyinternationalbusiness Major Events to setupbusinessintheKingdom. attracting andsupportingnew investors sophisticated ICTinfrastructurein to promotetheroleofBahrain’s The EDBtookthisopportunity professionals fromover135countries. exhibitors; andmorethan136,000ICT over 3,500internationalandregional business networkingeventattracts This keyannualtradefacilitationand Authority andBahrainPolytechnic. the TelecommunicationRegulatory with anexhibitionstandalongside Technology WeekheldinDubai,UAE, The EDBparticipatedintheGITEX GITEX TechnologyWeek sailing, scubadiving,andfishing. plus leisurelyaquaticactivitiessuchas mega-yachts tomarinetechnologies, Exhibits rangedfromthelatestluxury local, regionalandinternationalvisitors. and attractingagrowingnumberof region, featuringover100exhibitors of themainboatingeventsinMENA four-day showhasdevelopedintoone Islands duringNovember2011.This International (BSSI)washeldatAmwaj The thirdBahrainBoatShow Bahrain BoatShowInternational prestigious internationalevent. raise Bahrain’s profileatthis supported mediainterviewsto The EDBcoordinatedand Switzerland, inJanuary2011. Economic Forum atDavos, annual meetingofthe World delegation attendedthe41st A highlevelBahraini and HEShaikhMohammedbin Essa Rashid AlMaraj,Governorofthe CBB, A dedicatedmissionheadedby HE Retention andRatingsMission Milan &RomeinItaly. Munich inGermany;ParisFrance;and visited: Berlin,Dusseldorf,Essenand seven citiesinthreecountrieswere outskirts ofManchester.InEurope, Science andInnovationParkonthe concluded withavisittotheDaresbury by BirminghamandManchester, show commencedinLondon,followed Minneapolis. TheUnitedKingdomroad Phoenix, LosAngeles,LongBeachand Washington DC,NewYork,Chicago, The USroadshowtookinthecitiesof interviews. cooperation, andalsotookpartinmedia to examineopportunitiesofjoint representatives fromselectedsectors meetings withofficialsandcorporate investment destination.Delegatesheld value propositionasadesirable UK andEurope,topromoteBahrain’s public andprivatesectorvisitingtheUS, with high-leveldelegationsfromthe international roadshowsduring2011, comprehensive programmeof The EDBorganisedanother International RoadShows investment destination. Bahrain’s valuepropositionasadesirable the US, UKandEurope, topromote from thepublicandprivatesectorvisiting during 2011, withhigh-leveldelegations programme ofinternationalroadshows The EDBorganisedanothercomprehensive 2011 Caijing Magazine. Times, InternationalBusiness Daily and Review, IslamicGlobe,MEED, Global The PostMagazine,MENAInsurance Financial Adviser,TheAsianBanker, Times, TheNational,Euronews,FT publications includingtheFinancial coverage wasgeneratedinleading a destinationforinvestment.Positive and theKingdom’sattractivenessas Bahrain’s economicopportunities, fully demonstratethebreadthof and eventsthatweretailoredto with afullscheduleofinterviews coverage. Journalistswereprovided makers throughinformedmedia image ofBahrainforFDIdecision- journalists inordertocreateapositive trips wereorganisedfor29international During 2011,incomingfamiliarisation Journalists’ Familiarisation Media Relations financial andeconomiccondition. rating agenciesaboutBahrain’srobust also madepresentationstoallmajor environment inBahrain.Themission and theadvantageousoperating on theongoingcommitment,support operations inBahrain,toemphasize the seniormanagementoffirmswith York, wheremeetingswereheldwith EDB, visitedLondon,ParisandNew Al Khalifa,ChiefExecutiveofthe Annual Report 2011 Bahrain Economic Development Board 40_41 adjusted toincludeappropriate EDB’s plannedPRprogrammewas and influence.Accordingly,the level todeliverevengreatertraction economic PRcampaigntothenext performance ofBahrain’sglobal The eventwasaimedattakingthe Japan, SingaporeandMiddleEast. Germany, France,China,India, agencies fromtheUSA,UK, for internationalpublicrelations workshop inBahrainduring2011 The EDBorganisedaspecial Agencies Workshop forInternationalPR Public Relations swiftly andeffectively. in ordertorebutandcorrectcoverage engagement withtherelevantmedia Kingdom washandledbydirect misrepresentative reportingonthe and theeconomy.Inaccurateor for newscoverageaboutBahrain across thetargettedcoreterritories to monitortieronepublications Throughout 2011,theEDBcontinued Media Monitoring Flying theFlagAbroad Operations Review 130 speechesandtalkingpoints. During theyear,EDBdraftedover invitations tointernationaljournalists. of specificbriefingmaterialsand support, includingthepreparation institutions weregivenfullPR the EDBandothergovernment financial andlifestyleeventsinvolving was represented.Inaddition,allkey international eventsatwhichBahrain global indices,andcoverageofmajor data, thelatestrankingofBahrainin the Kingdom,quarterlyeconomic companies settingupbusinessin media. Thesecoverednew press releasestotheinternational During 2011,theEDBdistributed86 Press Material investment destination. enduring strengthsasanattractive Bahrain’s economicresilienceandits prospective investorsbyhighlighting provided reassurancetocurrentand prominence internationally,and Kingdom’s economicstoryachieved activities toensurethatthe Asia Pacific. influencers intheUS,Europeand direct investment(FDI)advisorsand through interviewswithkeyforeign qualitative researchconducted advertising campaign,basedon EDB iscurrentlydevelopinganew German andfourinChinese.The were producedinEnglish,five A totalofeightadvertisements introduced towardstheendof2010. Device” printcampaignthatwas the secondphaseof“Fact to aironCNNandCNBC,following from thepreviousyearcontinued endorsement televisioncommercials During 2011,thethirdparty Advertising opportunities presentinBahrain. a detailedinsightintotheeconomic messaging frameworkandprovide and constantlyupdatedtoreflectthe briefing materialswascreatedin2011, visits. Moreover,awiderangeof support EDBroadshowsandbusiness English, German,FrenchandItalianto exhibition materialwereproducedin marketing activities.Brochuresand to supportbusinessdevelopmentand The EDBprovidedrelevantcollateral Collateral versions. Chinese andJapaneselanguage produced inFrench,German, in Bahrainweretranslatedand have setuptheirbusinesses conducted withcompanieswho existing casestudiespreviously Japanese ‘microsite’websites, German, French,Chineseand Following thelaunchof companies. associations andGermanmember in Bahrain,otherembassies,chamber distributed totheGermanembassy show toGermany,inadditionbeing publication wasusedduringEDB’sroad to establishthemselvesinBahrain.The guide forGermancompanieslooking EDB developedaBahrainbusiness German ChamberofCommerce,the In cooperationwithGhorfa,theArab- Companies Business GuideforGerman microsites in2011. language versionsforuploadingontothe French, German,ChineseandJapanese Young, weretranslatedandproducedin Paribas, AmericanExpressandErnst& in Bahrain,suchasDHL,Kraft,BNP who havesetuptheirbusinesses previously conductedwithcompanies websites in2010,existingcasestudies Chinese andJapanese‘microsite’ Following thelaunchofGerman,French, Website Updates Annual Report 2011 Bahrain Economic Development Board 42_43 enhance thequalityandeffectivenessofGovernmentcommunications. EDB OnlineNewsroomandTwitter.Inaddition,thecontinueditseffortsto This includedthefullactivationofdigitalcommunicationschannelssuchas of theEconomicDevelopmentBoardtostakeholders,bothathomeandabroad. was onproactivelycommunicatingthenumerousactivitiesandachievements The mainfocusoftheEDB’snationalcommunicationsactivitiesduring2011 NATIONAL COMMUNICATIONS Message atHome Spreading the Operations Review Kingdom. competing forthefirsttimein stars fromtheEuropeanCircuit the EuropeanTour Schedule,with inBahrainon tournament starting Tour unveiledanewseason- In 2011,Volvo andtheEuropean templates. andanewtheme artwork, with enhancedbrandingand branding andawarenessefforts The EDBcontinueditsVision 2030 • • • the following: Presentations bytheEDBonBahrain’sEconomicVision2030 included Vision 2030Presentations was organisedincooperationwiththeMinistryofHousing. schools. Inaddition,theEDBsupportedSocialHousingForum, which new Vision2030videowascompletedfordistributiontoallelementary enhanced brandingandartwork,anewthemetemplates. A The EDBcontinueditsVision2030brandingandawareness efforts with Vision 2030Branding&Awareness • • • • • in 2011,including: The EDBachievedfullactivationofitsdigitalcommunicationschannels Online Communications&SocialMedia • • • following outcomes: The EDBachievedhighermediaexposureduring2011,withthe Media Activities programme organised bytheMinistryofForeign Affairs Wives ofdiplomatsinvolvedin theJusoororientationandtraining Programme organisedbytheBahrain InstituteofPublicAdministration Public sectoremployeesattending theGovernmentInduction International ScholarshipSummer Programme New studentsparticipatingin the HRHCrownPrince’s 10,000 uploadviewsweremadeonYouTube Over 4,000followersregisteredonTwitter Over 14,000‘Likes’wererecordedonFacebook 7 issuesoftheTanmiyaeNewsletterwerepublished is thefirstofitskindamongGovernmententitiesinBahrain Over 125,000visitswererecordedtotheEDBOnlineNewsroom,which UK Roadshow:41publishednewsitems,plus12TVspots U.S. RoadShow:36publishednewsitems,plus12TVspots together withgreaterTVandRadiocoverage Local pressreleases:53releasesissuedontheEDB’sinitiatives, over 50countries. than 1,200high-leveldelegatesfrom year. Theeventwasattendedbymore Bahrain in2011forthe18thconsecutive world. TheannualWIBCwasheldin and finance leadersanywhereinthe significant gatheringofIslamicbanking recognized asthelargestandmost (WIBC) hasbecomeinternationally The WorldIslamicBankingConference World IslamicBankingConference from sportsandlifestylepublications. with CNNInternationalandjournalists Club, plusleadinggolfpersonalities, International CircuitandRoyalGolf spokespersons fromtheEDB,Bahrain event, interviewswerearrangedfor time intheKingdom.Duringthisunique European Circuitcompetingforthefirst Tour Schedule,withstarsfromthe tournament inBahrainontheEuropean Tour unveiledanewseason-starting In 2011,VolvoandtheEuropean Volvo GolfChampionship Events time intheKingdom. Circuit competingforthefirst with starsfromtheEuropean on theEuropean Tour Schedule, starting tournamentinBahrain Tour unveiledanewseason- In 2011, Volvo andtheEuropean network, andshareknowledge, Government Communicatorscan Special Seminarsthroughwhich Network: Government Communication Strategy Frameworkwasintroduced. The GovernmentCommunication processes: Instilling bestpractices,policiesand initiatives: of theGovernment through thefollowing communications acrossdifferentareas during 2011toinstitutionalisenational The EDBcontinuedtotakeactivesteps Communications Enhancing Government other attractions. jewellery, accessories,photography,and market featuredcreativeart,handicrafts, attracts localsandtouristsalike.The district inBlock338Adliya,which located inBahrain’spopularrestaurant during thewintermonthsof2011,was event, whichwasheldtwiceaweek entrepreneurs. Thisinnovativeoutdoor upcoming Bahrainiartists,designersand to promotingthetalentsandskillsof Bahrain’s firstoutdoormarketdedicated by AlRiwaqArtSpace,Market338is Sponsored bytheEDB,andorganised Market 338 • • • competencies: Building capabilitiesand invited internationalspeakers. of specialcasestudies,togetherwith conducted. Theseinvolvedanumber experiences andchallenges,were spokespersons provided forofficialBahraini Professional mediatrainingwas conducted duringtheyear competencies courseswere Over 200specificcommunications standards –andawardedbyEdexcel accredited diploma–level7byBritish Relations, whichisaninternationally- Advanced DiplomainPublic in theInternationalProfessional communicators havebeenenrolled To date,37Government Annual Report 2011 Bahrain Economic Development Board 44_45 agencies inBahrain. to beaperformancerolemodelforGovernmentinstitutionsandpublicsector leadership roleasacatalystforchange.ThissupportstheBoard’saspiration the EDB’sorganisationalcapabilityandoperationaleffectiveness,its During 2011,anumberofmeasureswereimplementedtofurtherenhance Corporate Services Excellence Towards Organisational Operations Review Women’. Award forEmpoweringBahraini Sabeeka BintIbrahimAlKhalifa’s by receiptofthe‘HRHPrincess wasrecognised opportunities The EDB’s commitmenttoequal Plans. individual PersonalDevelopment of which wereidentifiedaspart and developmentofitsstaff, highest priorityonthetraining The EDBcontinuedtoplacethe discussed andcommunicated to all. Annual StaffForumwherebythe OperationalPlansfortheyearwere Bahraini Women’.Toensurea clearunifiedvision,EDBconductedan ‘HRH PrincessSabeekaBintIbrahimAlKhalifa’sAwardforEmpowering commitment toequalopportunitieswasrecognisedbyreceipt ofthe and 17.7percentoftheexecutivemanagementteam.TheEDB’s end of2011,Bahrainisconstituted84.62percentthetotal workforce, performed toensureappropriatebenchmarkingacrosstheboard. Atthe standardisation wascompletedforallgrades;andasalarystudy was Recognition Schemewasimplemented;aJobDescriptionstructure and a HumanResourcesPolicyManualwasintroduced;revamp ofthe progression opportunitiesforBahraininationals.Towardsthis end, The EDBiscommittedtoprovidingrewardingemploymentand career Productivity Improvement. Feedback, PresentationSkills,CustomerCare,ProblemSolving,ICDLand programmes forgeneralstaffincludedLeadingSelf,HowtoReceive Skills andHandlingPerformanceworkshopswereconducted.Other Line Management,EffectiveLeadership,AdvancedPresentation development, variouscoursessuchasCoachingforManagers,First technical andspecialisedskills.Withaconcentrationonmanagement workshops wereconductedwhichaimedtoenhanceemployees’soft, through bothgenericandtailoredsessions.Aseriesofcourses hours oftrainingwereprovided,whichaveraged80peremployee, individual PersonalDevelopmentPlans.Duringtheyear,over9,000 training anddevelopmentofitsstaff,whichwereidentifiedaspart Accordingly, theEDBcontinuedtoplacehighestpriorityon added services. highest levelsofcustomersatisfactionthroughthedeliveryvalue- them toperformthebestoftheirabilities,andtherebyachieve to investingintheskillsandknowledgeofitspeople.Thiswillenable In linewithitsresponsibilitytoleadbyexample,theEDBiscommitted People stages oftheprocess.Otherprocess ability totrackrequestsatdifferent and accelerateapprovalthrough the to eliminatetheuseofmanual forms, workflow systemwasimplemented advanced environmentally-friendly and improvementofitsprocesses,an As partoftheEDB’scontinuousreview Processes Solution. introduction ofanInternetAcceleration browsing facilitiesthroughthe environment, andenhancedinternet systems toensureaconsistentICT System, thestandardisationofall contemporary UnifiedCommunications initiatives includedtheinstallationofa prior todeployment.OtherICT modifications orsystemsintroductions all ICTproceduresandtestanynew environment wasdevelopedtoreplicate Also duringtheyear,anewtest current andfutureICTrequirements. data backupsysteminordertofulfill EDB’s backuppolicyofensuringafull storage technologies.Thissupportsthe cutting-edge virtualisationanddata infrastructure wasimplemented,using adaptable andeco-friendlyICTserver the EDB.Duringyear,astable, technology (ICT)isakeypriorityof information andcommunications The utilisationofstate-of-the-art Technology Development Plans. part ofindividualPersonal which wereidentifiedas and developmentofitsstaff, highest priorityonthetraining EDB continuedtoplacethe 25,000; initiating anannualpurchasing purchases betweenBD10,000 andBD an InternalTenderingCommittee for Financial Statements;introducing Standards fortheproductionof 2010 with InternationalFinancialReporting the MinistryofFinance;compliance through regularreimbursementfrom proper fundmanagement;cashstability covers accountabilityandtransparency; standards ofcorporategovernance.This its commitmenttoadoptthehighest Throughout 2011,theEDBmaintained Governance and productivity. effective monitoringofstaffattendance intranet wasenhancedtoenable registered vendors;andtheEDB’s for contractingserviceswithofficially comply withGovernmentregulations & CommercetoenabletheEDB database oftheMinistryIndustry with theCommercialRegistration(CR) System wasrestructuredandintegrated timely replenishment;thePurchasing Administration stockitemsandfacilitate was introducedtokeeptrackofall In addition,anInventorySystem leave. Expense Claims,TrainingandAnnual but notlimitedtoBusinessTravel, and Financeproceduralforms,including of HumanResources,Administration restructuring andautomatinganumber improvements during2011included Marathon Relay,andmanymore. games, participationinthe2011Bahrain activities suchasmale/femalesoccer Day celebrations;togetherwithother the annualdesertcamp,andLabour Ramadan Ghabga,Eidgatherings, Committee alsoorganisedthetraditional employees andtheirfamilies.TheSocial social andentertainmentoccasionsfor the managementteam;andtoprovide interaction amongtheemployeeswith organised tostrengthensocial of successfulsocialeventswere activities. Duringtheyear,anumber ‘family’ throughtheSocialCommittee healthy environmentfortheEDB EDB encouragesandpromotesa Social Activities regulations. compliance withBahrainTenderBoard plan toproperlymanagepurchases;and Annual Report 2011 Bahrain Economic Development Board 46_47 citizens inlinewiththeEconomicVision2030. to provideamoreprosperousandstablefutureforall growth andsocialdevelopmentoftheKingdominorder Executive Planfor2012toguidethecontinuedeconomic The EconomicDevelopmentBoardhasdevelopedan Moving Forward Health Agenda. the strategicobjectivesofnew implement initiativestosupport ofHealth(MOH)to Ministry EDBwillworkcloselywiththe the averagehouseholdincome. housing problem,andincreasing addressingthe job opportunities, throughcreating the short-term, a balancedeconomicgrowthin EDB willfocusonmaintaining the housingwaitinglist. Bahraini citizens,andtoshorten provide moreaffordablehomesfor in 2012,withtheprioritybeingto newly developedsix-yearstrategy of Housinginimplementingits theMinistry The EDBwillsupport Bahrain, theBahrainTeachersCollege,andPolytechnic. and enhancetheroleofMinistryEducation,University of Qualifications Framework,andtheNationalSchoolNumeracy Strategy; the QualityAssuranceAuthorityforEducationandTraining, theBahrain and VocationalEducation&Training;supportmajorinitiatives suchas to implementthethreemajorAgendasforSchools,HigherEducation Strategy. Accordingly,theEconomicDevelopmentBoardwill continue Bahrain’s EconomicVision2030andthesecondNational Education hasacriticalroletoplayinachievingtheobjectives of Bahrain’s majorreformprogrammesineducation,healthandhousing. The ExecutivePlanalsohighlightstheimportanceofcontinuing the region’sfinancialhub. investment inkeygrowthsectors,andconsolidateBahrain’sstatusas enhance theKingdom’seconomicdiversity,attractfurtherforeigndirect the adoptionofcomprehensiveandintegratedeconomicpoliciesto and increasingtheaveragehouseholdincome.ThePlanprioritises through creatingjobopportunities,addressingthehousingproblem, focus onmaintainingabalancedeconomicgrowthintheshort-term, result ofthesocialandpoliticalunrestearlierinyear,EDBwill Following thedeclineinBahrain’seconomicgrowth2011asa benefits wheretheyaremostneeded. state subsidiesofbasiccommoditiesandservicestomaximisetheir resources tomeetlocal,regionalandglobalchallenges,byredirecting recognises theneedtotakemaximumadvantageofBahrain’snational the NationalDialogueincollaborationwithallconcernedparties.It The Plancontainstangiblestepstoimplementtheconsensusof Regulatory Authority newly-established nationalHealthcare the ongoingdevelopmentof At thesametime,EDBwillsupport between MOHandotherinstitutions. Ministry, andcoordinatingservices maker, integratingserviceswithinthe enhancing theMinistry’sroleasapolicy the newHealthAgenda.Theseinclude to supportthestrategicobjectivesof Health (MOH)toimplementinitiatives will workcloselywiththeMinistryof In theareaofhealthcare,EDB housing shortage. will helptoaddresstheKingdom’s housing unitsoverthenextthreeyears, the constructionofover4,000new partnership (PPP)project,whichinvolves and affordablehousingpublic-private- list. Thesecondphaseofthesocial and toshortenthehousingwaiting affordable homesforBahrainicitizens, with theprioritybeingtoprovidemore developed six-yearstrategyin2012, Housing inimplementingitsnewly The EDBwillsupporttheMinistryof Bahrain. audiences, bothinandoutside and providebetterreachto the EDB’s onlinepresence, launched inordertoenhance and iPadapplicationswillbe Recently-developed iPhone programmes. Alsoin2012,therecently- national andglobalcommunications activities willbesupportedbyintegrated Garden Show.TheseandallotherEDB Show InternationalandtheBahrain International AirShow,BahrainBoat 1 Gulf Air BahrainGrandPrix, Conference; togetherwiththeFormula and thefirstGCCPrivateBanking World IslamicBankingConference, Markets andFundsConference,the 2012 includetheWorldIslamicCapital to investinBahrain.Plannedeventsfor attract morecompaniesandinstitutions marketing campaignsandroadshowsto a scheduleforinternationaldirect The ExecutivePlanalsoincludes advancement oftheKingdom. on mattersrelatedtotheeconomic EDB planstodraftfurtherlegislation identify areasforimprovement.The and investment-relatedlegislationto continue itsreviewofcertainbusiness enact thelawsitdraftedlastyear,and Development Boardwillactivelyseekto During 2012,theEconomic improvement. related legislationtoidentifyareasfor of certainbusinessandinvestment- it draftedlastyear, andcontinueitsreview Board willactivelyseektoenactthelaws During 2012, theEconomicDevelopment 2012 responsive service. stakeholders withaprofessionaland efficient operations,andprovideall productivity, maintaineffectiveand internal processes,inorderimprove enhance itsICTinfrastructureand skills andcapabilitiesofitsstaff, Board willcontinuetodevelopthe Finally, theEconomicDevelopment outside Bahrain. better reachtoaudiences,bothinand the EDB’sonlinepresence,andprovide will belaunchedinordertoenhance developed iPhoneandiPadapplications