STREAMLINING GROWTH AND DEVELOPMENT

Annual Report 2018 bcci.bh His Royal Highness His Majesty His Royal Highness Prince Khalifa bin Salman Al Khalifa King Hamad bin Isa Al Khalifa Prince Salman bin Hamad Al Khalifa

Prime Minister The King of the Kingdom of Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister Table of Contents

Introduction 6

Message from the Chairman 6 CEO’s Message 8 Vision, Mission and Core Values 10 Board of Directors 12

Bahrain Economic Report 14

Bahrain’s Economic Performance 2018 14 Timeline of 2018 16

Board of Directors’ Report 17

Firm steps Towards the right path 17 first year Achievement for the current session 16 Restructuring the committees 24 Foreign exposure 32 Annual Report Introduction Message of the Chairman Annual Report Introduction Message of the Chairman 2018 2018

Message of the Chairman “We vow exerting all efforts to create an ecosystem that fosters the growth and development of Bahrain’s private sector Bahrain Chamber of Commerce and Industry and reinforces the competitiveness and To become the leading voice sustainability of the national economy in line with the leadership’s far-sighted of the business community economic vision”

Dear members of the General Assembly, » We are privileged for the confidence bestowed upon us to lead the region’s first chamber On behalf of myself and the members of the board of directors of the Bahrain Cham- and build on the milestone achievements made since its ber of Commerce and Industry, I am pleased to present you the Annual Report 2018, inception in 1939. covering the first year of the 29th term of the board of directors and shedding a scope light on the achievements made. We are privileged for the confidence bestowed upon us to lead the region’s first cham- ber and build on the milestone achievements made since its inception in 1939. We vow exerting all efforts to create an ecosystem that fosters the growth and development of Bahrain’s private sector and reinforces the competitiveness and sustainability of the national economy in line with the leadership’s far-sighted economic vision. This is an opportunity to pay tribute to the wise leadership of the Kingdom of Bahrain spearheaded by His Majesty King Hamad bin Isa Al Khalifa, the King of the Kingdom of Bahrain, and His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, for empowering the chamber’s standing as a representative of the private sector and a partner in eco- nomic-decisions, and laying the foundation for a robust public-private partnership. The partnership unified the efforts of the government represented by its ministries, authorities, and organizations, to those of the private sector represented by the Bahrain Chamber of Commerce and Industry, and paved the way for the achieve- ment of mutually beneficial outcomes, such as having the Commercial Registration fees reduced. In conclusion, I would like to thank you all and underline your pivotal role to the success of your chamber, and renew our commitment to continue supporting the private sector and advocating its interest.

Sameer Abdulla Nass Chairman

6 7 Annual Report Introduction CEO’s Message Annual Report Introduction CEO’s Message 2018 2018

CEO’s Message

Aiming at achieving the highest levels of partnership between the public and private sectors This is what the Chamber was keen to achieve and work on during the past year, and the success of the decision to reduce the fees of commercial records is one of these achievements. The Chamber’s cooperation with the Ministry of Industry, Commerce Distinguished Members of the Assembly General, and under the guidance of the leadership and the wise directives of His Royal » We will consider the best ways to develop the Chamber’s Highness the Prime Minister affirms the active role it takes and adopts to defend the administrative work, enhance rights of the Chamber’s members. its efficiency and insist on I am pleased to extend my congratulations to the Chairman and members of the Board excellence in providing In this context, I assure you that we at the Bahrain Chamber of Commerce and Industry are services to members. of Directors of Bahrain Chamber of Commerce and Industry (BCCI) for their success in working to provide support to the local private sector through hosting specialized events the elections of the 29th session held last year in March 2018. I extend my sincere grat- and workshops and through the work program of the sectoral and joint committees in itude and appreciation to them for their interest and cooperation with the executive and order to ensure cohesion between the Chamber and its members and the development administrative staff of the Chamber. I also extend my deep appreciation to all the em- of these commercial sectors. ployees at the Chamber for their great efforts over the past period. The Bahraini private sector is on the threshold of an important new phase, and it is an ambitious vision aimed The Chamber is committed to serving the interests of the business community and has at achieving the highest levels of partnership between the public and private sectors. continuously worked on bolstering international relations to identify new opportunities and assist in improving their trade prospects and development outside In this regard, we worked during the previous phase with the administrative staff of the the Kingdom, and to help them face heightened international competition and ease their Chamber to prepare our executive plan to be in line with the next phase of economic participation in relevant regional and global events. growth and sustainability and to be consistent with the vision of the Board of Directors. This led us to study the internal and external environment of the Chamber and to monitor Today, we aim to meet the needs of the Bahraini business community that believes that the mechanisms of the administrative, technical and legal systems and how they relate the Bahrain Chamber of Commerce and Industry is its first destination to express its to and harmonize with the external environment represented in the list of members and concerns to and discuss its issues with. Consequently, the Chamber can present these regulators and legislators and external relations. issues to the decision makers in relevant governmental bodies and institutions in the Kingdom. The executive management aspires to maintain continued trust between the We are pleased to assure the members of the General Assembly that we have launched Chamber and its associates. a series of initiatives that will be implemented within a specific time frame and through clear, measurable and controlled mechanisms to achieve the desired results, aiming In conclusion, we are confident that these efforts will be reflected in day to day activities at consolidating the principle of sustainable development that is in line with Bahrain during the coming period with the blessing of the wise leadership, the guidance of the Economic Vision 2030. distinguished Board of Directors, and the efforts of our qualified staff. From this perspective, we will consider the best ways to develop the Chamber’s ad- ministrative work, enhance its efficiency and insist on excellence in providing services to members. We will also invest in information technology, and develop the Chamber’s automated system to simplify various procedures that will save time and cost and elevate the quality of providing services. The Chamber’s role has been activated with regards to finding work mechanisms that aim to protect the interests of its members. This includes participating in decision-making with the government through conducting economic studies and research to serve members’ interests and to eliminate the obstacles they face to elevate their work, and to contribute to the enactment of legislation and laws Shaker Ibrahim Al Shater adapted to the requirements of the public interest. Chief Executive Officer

8 9 Annual Report Introduction Vision, Mission Annual Report Introduction Vision, Mission 2018 and Core Values 2018 and Core Values

Vision, Mission and Core Values Core Values

Since its inception in 1939, the Bahrain Chamber of Commerce and Industry (BCCI) played a prominent role in shaping the national and creating a vigorous private sector. Bold Transparent It has kept abreast of the fast-paced economic and social developments, and con- At BCCI we recognize the challenges we We are committed to our members and solidated its efforts to stimulate the growth and expansion of the private sector and face in the private sector. This requires us to are keen to win the confidence and re- empower its role in the economic development of the country alongside the public be bold, to take action, and make decisions. spect of the commercial market in what sector. We must deal with challenges, and respond we do. to change to achieve positive results. The confidence bestowed upon the chamber by the wise leadership reinforced its influence on economic decisions and streamlined its endeavor to create an attractive ecosystem that fosters the flourish of businesses. In addition, the growing base of its members contributed to reinstating its standing as the sole representative of the private sector and an advocate of its interest.

Committed Loyal

Is essential for each of us to be able to We work for one institution, BCCI. Not for Mission Vision deal with the challenges we all face now a specific person or entity. We are com- To represent the private sector To become the leading voice of the and in the future. mitted to the faithfulness of BCCI and its and play an influential role in business community, and an influential members. protecting its interest partner in economic decision-making

Positioning Statement Value Proposition

Our members deserve an efficient re- An organization driven by talented com- sponsive organization. One that can mitted staff focused at providing the best assist them to grow, succeed, and services and help for the present and Innovative inclusive protect their interests. the future Today is the main engine of strong econ- We serve all of our members regardless Tagline omies and leading institutions in the of size, sectors, gender and sect. The world, and we need to embrace it and challenges that confront us unite us. Your business Partner work on change in the BCCI.

10 11 Annual Report Introduction Board of Directors Annual Report Introduction Board of Directors 2018 2018

Board of Directors

Sameer Abdulla Nass Khalid Mohamed Najibi Mohamed Abduljabbar Sh. Hend Bint Salman Jameel Yusuf Ramez Mohamed Chairman First Vice-Chairman Alkooheji Al Khalifa Al Ghanah Al Awadhi Second Vice-Chairman Board Member Board Member Board Member

Aaref Ahmed Hejres Waleed Ebrahim Kanoo Basim Mohamed Al Saie Dr. Waheeb Ahmed Al Abdulhakeem Ahmed Abdulla Binhindi Treasurer Vice-Treasurer Executive Committee Khaja Ebrahim Al Shemari Board Member Member Board Member Board Member

Mohamed Farooq Al Moayyed Abdulhussain Khalil Khalid Rashed Sonya Mohamed Janahi Batool Mohamed Dadabai Ahmed Sabah Al Saloom Executive Committee Dewani Al Zayani Board Member Board Member Board Member Member Board Member Board Member

12 13 Annual Report Bahrain Economic Economic Performance Annual Report Bahrain Economic Economic Performance 2018 Report 2018 Report

Bahrain’s Economic Performance 2018

Significant Economic Achievements According to

International Standards in the internationally Middle East In terms of economic on favorable business freedom, as for 2019 3 environment index 54 Heritage Index Economic growth rate It is with pride that we reflect on the Domestic Product, achieved a 2.4% The non-oil sector (GDP), the non-financial projects’ share of Communication Technology (ICT) sector. amounted to vibrant economic performance of growth. Additionally, according to Meed achieved a growth of the GDP is 68.5%. 45% of that is attributed According to a report published by KPMG, Bahrain during 2018, which reinstates Projects, the total value of infrastructure to the private sector representing various Bahrain is among the most competitive % Bahrain’s economic standing in the projects in Bahrain reached about 87 business activities in manufacturing, and productive countries. Bahrain was region and reflects the high level of billion USD, growing annually at 3.8%. % construction, trade, hospitality and ranked 44th in the 2017-2018 Global 1.09 coordination between the public and MENA region growth is expected to restaurants, transportation and Competitiveness Report published by Bahrain succeeded in attracting reach 3% within 2019 according to the 2.4which constitutes more than , real-estate and the World Economic Forum, climbing 4 » private sector. » 76 foreign companies with a 80% of the Kingdom’s Gross latest report issued by the Economic business services. On the other hand, the ranks from the 2016-2017 report. total investment of 810 million This performance is attributed to the Domestic Product US dollars Development Board. financial sector represents 16.14% of the In terms of economic freedom, Bahrain’s Kingdom of Bahrain’s Economic Vision GDP according to Bahrain Information As for the Bahrain Information and score is 66.4, and it ranks 5th regionally 2030, which paired with the bundle and e-Government Authority’s report e-Government Authority statistics and 54th internationally according to the of reforms and initiatives that aim to on Fourth Quarter of 2018 National on annual growth rates of the non-oil 2019 Heritage Index. reinforce the resilience and vitality of the Accounts. economy pave the way for sustainable sector, the third and fourth quarters of growth and development. 2018 witnessed a positive performance, The World ranked Bahrain third with a 0.34% growth for the personal in the Middle East and 62nd globally for In 2018, Bahrain’s economy achieved and social services sector, 0.81% for ease of doing business, up four ranks notable progress, particularly the construction sector, 0.72% for the from the year before. Bahrain has considering the moderate oil prices financial sector, 12.67% for government also made notable reforms, including and the growth of the non-oil sector. services, and %0.39 for business and the protection of minority investors by The economic growth rate amounted real-estate. In addition, the trade balance reinforcing the role of shareholders in to 1.09% up to the end of the third deficit amounted to 2.8 billion Bahraini major decisions, and reducing the time quarter, according to Bahrain Economic dinars in 2018, with total imports of 5.6 needed for imports by upgrading the Quarterly report issued by the Economic billion BHD and exports of 2.8 billion single-window system. Development Board. BHD. Moreover, Bahrain’s economic perfor- The non-oil sector, which constitutes As for the contribution of the private mance was driven by a number of grow- more than 80% of the Kingdom’s Gross sector to the ing sectors including the Information and

14 15 Annual Report Bahrain Economic Economic Performance Annual Report Board of Directors’ Firm steps 2018 Report 2018 Report Towards the right path

Timeline of 2018 The fast-paced economic, political, and social chang- es coupled with the economic challenges facing the region and the world have largely influenced the priorities of the board of directors of the Bahrain Chamber of Commerce and Industry. Board of Directors’ Report

Firm steps Towards the right path

Since the outset of the 29th term of revitalizing the markets and encourag- the board of directors of the Bahrain ing the adoption of latest technologies, Chamber of Commerce and Industry, an attracting and invigorating ambitious target-specific work strate- trade to diversify sources of income, and gy was created with the principal goal solidifying the chamber’s standing as a of revamping the chamber, keeping it representative of the private sector. abreast of economic changes, and meet- The board of directors has exerted stren- ing the aspirations of the members and uous efforts to resolve issues of concern the business community. The board’s 2018 The open meeting on the impact to the private sector, and succeeded in » Approve the new Commercial of the new CR fees » strategy was formulated following thor- Jun Oct Registration fees reaching tangible results. It is commit- ough analysis of the chamber’s genuine ted to continuing with the same asser- role and tasks, coupled with close moni- tiveness to meet the aspirations of the toring of most recent economic changes 2Board of Directors’ Elections for the » Form the Committees’ Steering Group Launch of a promotional private sector. 29th session » » and challenges facing the private sector. Name committees’ heads program to introduce investment Mar Board of Directors first meeting Jul » Nov » Amendment of law on overtime calculation opportunities in Bahrain Below are some of accomplishments of Postponement of the implementation of » The board’s strategy focuses on four » the board of directors during the first Commercial Registration (CR) fees areas, namely revising the business Form the consulting council year of its term. » and investment laws and legislations, » Launch a Live Chat feature on the official » Organize a series of sector-specific Apr » The General Assembly Meeting Aug website Dec workshops regarding VAT » Organize training courses to develop » Launch the Members’ Complaints Unit employees’ skills

» Restructure the sector committees May and reducing them to 10 Sep » Launch BCCI’s Best Idea Award » Accepting all members’ candidacy applications 2019 » The Ramadan Majlis

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The elections of the 29th Liaison with the wise board of directors leadership

» Meeting His Majesty The King

» BCCI Board of Directors Elections for the 29th session » Meeting HRH Prime Minister » Meeting HRH Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister

The elections process for the 29th board Commerce and Industry, and the conditions The board of directors had the honor the chamber’s keenness on working of directors of the Bahrain Chamber of and procedures approved by the Elections of meeting the wise leadership and in line with the leadership’s ambitious Commerce and Industry (BCCI) was com- Committee. It was held in the presence of addressing the concerns of the private and far-sighted economic vision. menced on Saturday 10th March 2018 at all members of the Elections Committee, sector directly. Those meetings consti- 8:00 a.m. and according to Resolution no. the representative of the Ministry of Indus- tuted a viable opportunity to reinstate (156) for the year 2013 of the executive law try, Commerce, and Tourism, and observ- issued by decree law no. (48) for the year ers from Bahrain Transparency Society. 2012 with regard to Bahrain Chamber of

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Meetings of the board of directors

Board of Directors Meetings 7 » The first BCCI Board of Directors meeting In addition to 4 extraordinary meetings During the period covered by this re- mulling means of overcoming them • Consolidating the chamber’s tie with its members. • Reinstating the chamber’s mission through the various Identifying the hurdles curbing the port, the board of directors held a to- in cooperation with the concerned of- media channels. Emphasizing the role of the chamber in drawing up progress of of the various sectors of tal of 7 meetings in addition to 4 ex- ficials and organizations, as well as • the national economy and mulling economic policies, and enhancing cooperation with Revamping coordination with the legislative and ex- means of overcoming them. traordinary meetings. These meetings through the chamber’s sector commit- • centered on identifying the hurdles tees. Below, some of key topics dis- ministries and other official bodies. ecutive branches of the government, as well as the relevant civil society organizations. curbing the progress of the various cussed during the board meetings: • Empowering the chamber’s committees in their en- sectors of the national economy and deavor to revitalize the sectors they represent, and • Upgrading the services of the chamber and aspiring monitoring their progress. to transform it into a smart organization. • Interacting with the business community, identifying its obstacles, and convening relevant bodies to probe solutions.

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Strengthening the executive Bolstering liaison with body of the chamber the members

» BCCI executives and administrative staff » Field Trips to several commercial markets (Riffa Souq) Knowing the pivotal role of the employees of any organization in translating its vision into tangible outcomes, Knowing the fundamental role of the members in empowering the chamber the board of directors has intensified its efforts to upgrade the performance of the employees of the chamber and streamlining its endeavors that aim at enhancing the vitality of the national at all levels. The board created a comprehensive employees’ development plan with specific Key Performance economy and diversifying sources of income, the board was keen on sustaining Indicators (KPIs) to measure their progress objectively. The development plan emphasized on the following: transparent and unbounded communication with its members by holding regu- lar meetings and functions. These meetings constitute a platform for the mem- • Altering the work culture and reinstating key values • Aiding the organization with top qualified national bers to communicate their issues, raise their concerns, and make proposals and such as competitiveness, productivity, and sustain- cadre and updating the internal regulations to spur suggestions. Below are some of these meetings: ability. In addition to offering motivation incentives. the development process. • The Ramadan Majlis, which witnessed • An open meeting on the impact of the • Upgrading the administrative and technical systems, • Adhering to international standards in evaluating the wide participation from members of new Commercial Registration fees and developing the chamber’s sources of income. performance of the employees. the business community. • The regular sector-focused consulta- • Offering academic and professional training to the The General Assembly Meeting held on tive meetings employees in a bid to uplift their performance and in- • 22nd April 2018 vigorate their productivity to match the developmental philosophy of the board. In addition to eliciting members’ view point in market-related matters via electronic questionnaires, and allowing all members to apply for committee membership.

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Main Committees Membership Structure

The Board of Directors shall determine the chairmanship of each committee, Chairman provided that it has expertise in the com- petence of the committee.

Each Committee shall, at its first Restructuring meeting, elect a Vice Chairman to Vice the committees replace the chairman in his absence. Chairman

The members of the committees shall be chosen according to specific criteria to be competent in the work of the committee, » Committees has been reduced In a bid to match the leadership’s vision stressing on diversifying sourc- taking into account the fair representation to 10 out of 24 committee Members of the membership of each committee based previously 9 es of income and ensuring the sustainable growth of the national econo- » A total of 700 applications for on its competences. committee membership were my, the board of directors has taken strides to revamp and empower its received, of which 90 were sector committees, as summarized in the bulletin points below: approved

1. Restructuring the sector committees 5. Accepting all members’ candidacy The members of the committees and reducing their number to only 10, applications for committee membership. are chosen to include two female representing the most vital and promis- members and two members of 6. Setting objective selection criteria for ing non-oil sectors. the small and medium enterprises the heads of the committees. (unless otherwise required). Members7 2 2. Allowing the permanent committees Advisor 7. Forming a coordination team respon- to create their own taskforces as need sible for streamlining cooperation among Each committee has the right to appoint advisors arises. the 10 committees, monitoring and eval- from ministries, governmental or private bodies 3. Restricting the period of committee uating the committees, and preparing or institutions concerned with the sector, or membership to two years. quarterly reports on the committees’ per- those with experience in the sector itself. formance. The coordination team has as 4. Monitoring the performance of the its members the heads of all the commit- committees and ensuring their adher- tees, two board members, and the Chief ence to their action plans in line with the Executive Officer. board’s overall vision and strategy. 2 2 The permanent committees have been formed to be Members Female comprehensive in all the basic, vital and non-oil sectors, Small and medium- Members which affect the economic environment directly. The sized enterprises main role of all these committees has been determined. Each committee can form a task force as needed after presenting it to the coordination group for submission to the Board of Directors.

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8. Holding an annual meeting to deliber- • Identifying the challenges and hurdles ate about all the proposals made by the of the sectors they represent. committees and approved by the board. • Making proposals that aim at develop- All Permanent The proposals are to center on invigorat- ing and upgrading the sectors. Committees ing the national economy and steering it Looking into matters raised by the in harmony to the country’s economic • board of directors or the executive vision 2030. 8 weeks before the bureau. General Assembly General Assembly 9. Expanding the responsibilities of the All Committees’ Monthly Fostering coordination between the committees to include: • recommendations to Meetings business sectors and the relevant of- be presented in the Annual conference • Stimulating relations among the busi- ficial bodies. should be prepared nesses of each sector. • Examining the sector-related legisla- Board of Directors • Identifying the issues of concern to tions and making proposals. sectors they represent as well as the 12. A comprehensive term of reference 6 weeks before the hurdles curbing their progress, and Steering General Assembly was prepared, which specifies the scope making proposals that serves to elim- Group The agenda of the of work and responsibilities of each of Committee’s monthly meetings inate them or mitigate their impact. Committees Annual the ten sector committees namely: recommendations shall be conference should submitted to the steering group be prepared Executive Office • Probing means of fostering the com- The Industry and Energy petitiveness of businesses within each • sector. • the Real-estate & Construction Two Board 4 weeks before the Follow up Analyzing the impact of local, regional, the Transportation and Logistics General Assembly Members • • Executive Office and international economic trends and Committees Annual The executive office shall the Health conference agenda changes on the performance of the • review all topics prior sending should be approved by them to the board of directors the Finance, & the board of directors Chief Steering sectors of the national economy. • Evaluate Executive • Submitting a two-year-strategy. • the Food Wealth Officer group • Presenting quarterly reports detailing • the Technology their activities and accomplishments. • the Hospitality & Tourism Committee’s Board of Directors Cooardinate Preparing annual reports on the sec- Board of Directors shall approve chairpersons • • the Commercial Markets (which in- tors they represent. The reports are the topics to be presented in the cludes two sub-committees repre- Annual Conference. to include the performance of the par- senting beauty salons and stalled ticular sector, the contribution of the businesses) committee to the sector’s progress, and the Education Committee. Transportation Real-estate & Industry and and a future plan outlining the mea- • Health 1 day before the and Logistics Construction Energy sures to be taken to develop the sector. 13. A guidebook detailing the commit- General Assembly Hospitality & Finance, Technology Food Wealth Presenting committees Committees Annual Conference Tourism tees’ role and responsibilities, regula- Insurance & Tax 10. Strategic planning workshops were recommendations in All topics will be presented Education Commercial organized for all the committees, in tions and work procedures, and per- the Annual conference in the Annual Conference Committee Markets which they were trained on formulating formance evaluation mechanism was their strategies and setting measurable distributed to the committees to ensure and achievable long-term and short- synergy among the committees and the harmony with the board’s vision. Board of Directors term goals. Hopes of the AGM & Joint Committees Commercial Sector 14. Defining the role and responsibil- Recommendations 11. Specifying the tasks and responsi- bilities of the committees and supporting ities of the heads and members of the Presenting Committees’ achievements included in committees. BCCI annual report. Results and resolutions of the them to achieve their goals, which are: General assembly meeting will be included in the board’s of directors plan for the coming year

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The Consulting Council

» The first Consulting Council meeting

The board of directors of the 29th term has taken an unprecedented step by forming a consulting council which aims at assisting the board in crucial mat- Reinstating the standing of the chamber and ters, taking part in shaping strategic decisions and stances of the chamber, and ensuring its autonomy making proposals. The council, which comprises of leading businessmen and » Updating the chamber’s Following the General Assembly’s deci- The legal team, in coordination with the former chamber heads with hands-on experience, functions as an integral part bylaw by means that sion to authorize the board of directors Ministry of Industry, Commence, and of the board’s decision-making mechanism. empowers the chamber’s standing and reinstate its to take the necessary legal measures to Tourism, proposed some amendments, autonomy. amend and update the chamber’s bylaw, which were endorsed by both the cham- the board of directors formed a legal ber’s board of directors and the Minister team with the chief responsibility of re- of Industry, Commerce, and Tourism. vising and updating the chamber’s bylaw by means that empowers the chamber’s standing and reinstate its autonomy.

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The transition to a smart organization Requesting the amendment of law on overtime calculation

Live Chat Since the outset of its term, the board has also employed technology to en- » communicating with members of directors has set transforming the hance the efficiency of its communication by launching a Live Chat feature on the official website chamber into a smart organization and with its members by launching a Live encouraging its members to adopt tech- Chat feature on its official website and nological advancement and embrace developing a mobile application which E-commerce as a priority. The chamber will be launched soon. » Presenting the amendments to HRH Prime Minister

» protect the rights of both the The board of directors adopted the plea to have this law article amended and pro- Partnering with the members employers and employees and ensure a vigorous work made by large companies to have arti- tect the rights of both the employers and The board of directors believes in the right of the members to shape the trajec- environment cle 54 of the 2012 Private Sector Law on employees and ensure a vigorous work tory of the organization that represents them and influence its actions and deci- the calculation of overtime amended, the environment. sions, hence has exerted all efforts to revamp liaison between the chamber and board joined efforts with relevant bodies its members. In this regard, and in a bid to gain thorough understanding of the ob- stacles facing the members, the board held a number of open meetings in addition to one-on-one meetings with members from across the sectors of the economy. The board also plans to achieve the following in the forthcoming period: Encouraging the expansion of local businesses • Eliciting members’ perspectives and • Perceiving members’ expectations re- » The Bahrain Chamber has In their endeavor to empower local business During the period covered by this report, sought paving the way for proposals on developing the work garding communication with the cham- their expansion to promising and reinforce their presence in the region the Bahrain Chamber received 6 foreign mechanism of the chamber. ber, and probing means to meet their markets. and the world, the Bahrain Chamber has business delegations from , Thailand, • Basing the chamber’s strides to alter aspirations. sought paving the way for their expansion , , and . It also and update its systems and work mech- • Evaluating the responsiveness of the to promising markets. It has in this regard took part in 15 business events in different anism on scientific data. various government bodies to the en- hosted a number of business delegations, countries, and held 22 meetings with dip- and mulled the prospect of venturing in the lomatic envoys. • Looking into the criticism, suggestions, deavors of the chamber. and comments raised by the members. markets of brotherly and friendly countries.

Assigning a taskforce responsible for conducting research Toward the end of 2018, the chamber of employers, workers, and legal pro- established a workforce responsible fessionals with the core responsibility for conducting research to find out of conducting research on the Labor the implications of allowing compa- Market Regulatory Authority (LMRA). nies with foreign capitals to engage in The outcomes and recommendations various business activities at different of both research will be shared with the percentages. The chamber also estab- business community. lished another taskforce comprising

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Cairo Egypt 8th and 15th April 2018 Taking part in the 45th term of the Arab Labor Conference

Argentine Foreign exposure Hosting an Argentine Beirut business delegation Lebanon 9th to 11th July 2018 As part of the chamber’s mission to represent Bahrain’s private sector, promote Participating in a forum the Kingdom of Bahrain, and attract foreign investments, the chamber took part themed “Toward new market in a number of key functions. Below a list of these functions: tools to support persons with disabilities”

• Taking part in the 45th term of the Arab • Visiting the People’s Republic of China Labor Conference, which was held in between 13th and 23rd November 2018 Cairo between 8th and 15th April 2018. and participating in Bahrain-China Busi- The chamber’s delegation was spear- ness Forum. The visit resulted in sign- headed by chairman Mr. Sameer Nass, ing a number of joint agreements that Hong Kong who was elected for the post of deputy aims at fostering business cooperation Hosting a business chairman of employers’ committee of and transferring experience. delegation from Hong Kong Republic the conference. • Taking part in a business forum of Korea • Participating in a forum themed “To- themed “Investment Opportunities in 10th and 13th ward new market tools to support Bahrain”, which was organized by the November 2018 persons with disabilities”, which was U.K-based Diplomat Business Club and Taking part in the Bahraini-Korean held in Beirut from 9th to 11th July held at the Palace of Westminster in Business Forum 2018. The forum was organized by the London in the presence of key Brit- Arab Labor Organization and the Arab ish Members of Parliament, leaders, Organization of Persons with Disabil- officials, and business owners. The ities, and stressed on protecting the event aimed at attracting foreign in- rights of people with disabilities and vestments, highlighting business and reinforcing their integration in the la- partnership opportunities in Bahrain, bor market. Through its participation and reaffirming Bahrain’s image as in this event, the chamber contributed an attractive and friendly business and Thai to rectifying the false image about the investments destination. Hosting a Thai business Kingdom of Bahrain and had the op- delegation • A delegation of members of the Board portunity to highlight Bahrain’s strides of Directors participated in the meet- London to empower, protect, and ensure the United Kingdom ings and events of the Federation of rights of people with disabilities. Taking part in a business forum themed GCC Chambers which were held in “Investment Opportunities in Bahrain” • Visiting the Republic of Korea between each of the Kingdom of , 10th and 13th November 2018, and the , the State of taking part in the Bahraini-Korean and the Sultanate of . The Business Forum. The visit also includ- Chamber delegates also participated ed business-to-business meetings, in the meetings of the Union of Arab and on the sidelines, officials from Chambers in Riyadh, Kuwait and Alge- Republic the Bahrain Chamber convened their ria. The Chamber has also formed a del- of China counterparts from Korea Chamber and egation of members of the Consultative Germany th rd probed cooperation in streamlining Council to visit the State of Kuwait and 13 and 23 Hosting a German November 2018 business delegation and stimulating business and trade the Sultanate of Oman. between both friendly countries. participating in Bahrain- China Business Forum

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» During a VAT workshop at Bait Al Tijjar

A total of The Value Added Tax In a bid to raise the awareness of the The workshops centered on the pro- the work frame of the Value-Added-Tax private sector on the implementation cedures for registering in the Taxation (VAT) during the trial phase. The joint 1036attended this event along and implications of the Value-Add- Bureau, the requirements, the proper committee also deliberated about the three days ed-Tax, which was due on 1st January implementation of the tax, and its prob- technical and legal aspects of the tax, 2019, the Bahrain Chamber of Com- able implications. and took into consideration the readi- merce and Industry represented by ness of the private sector. The chamber also established a joint its Finance, Insurance and Tax Com- work committee with the Ministry of Fi- mittee held a series of sector-specific nance, which came in implementation workshops. to the leadership’s directives to review

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Commercial Records Fees CR Fees Options

By Branch By CR

Original BCCI’s Recommendation after Negotiations Recommendation Recommendation

Slashing C.R fees Associated Fees • CR fees: 100 BHD • CR fees: 50 BHD are based on Renewal: 75 BHD 100 BHD fixed fee for 1-3 activities the proposed • • regulation • 100 BHD for every additional activity

Number of CRs that the In manifestation to fruitful public-private partnership, the Bahrain Chamber fees will apply to 78,541 78,541 44,872 of Commerce and Industry succeeded in responding to the pressing demand (of the business community to have the new Commercial Registration (C.R تخفيض الرسوم بنسبة fees reduced. % The success is attributed to the wise However, and following lengthy delibera- directives of the Premier on suspend- tions a consensus was reached, accord- ing the new C.R fees and assigning the ing to which the fees for new Commercial في بعض القطاعات مثل90 chamber to mull possible alternatives, Registrations will be BD 50 with BD 100 القطاع االنشائي coupled with the joint efforts between for up to 3 business activities, beyond the chamber and the Ministry of Industry, which additional BD 100 will be charged The CRs that benefit from the agreement Commerce, and Tourism which resulted for each business activity. in succeeding to reduce the fees to ad- Knowing that %83.24 of total C.Rs in equate levels. Bahrain are involved in running 1 to 3 The Chamber’s initial proposal was to business activities, while the remaining maintain the new fees within the range %16.76 run more than 3 business activi- of neighboring ties, the percentage of businesses bene- (GCC) countries at BD 100 for new Com- fiting from the agreed upon fee structure % % mercial Registrations and BD 75 for the is about %83. renewal of the Commercial Registration. »17 The number of CRs that 83» The CRs that benefit from the agreement between own more than 3 activities Bahrain Chamber of Commerce and Industry and the Ministry of Commerce, Industry, and Tourism (CR owners that own between 1 to 3 activities).

36 37 Annual Report Board of Directors’ first year Achievement Annual Report Board of Directors’ first year Achievement 2018 Report for the current session 2018 Report for the current session

Various Sector Activities: The Chamber has organized and participated in many economic activities, in order Laying the foundation for its to enhance communication with the commercial sector, including but not limited to: comprehensive action plan 14-21 July 2018 eration with the Economic Development The field visit of the committee of com- Board and the Bahrain Exports Center in In 2018, the board of directors laid the foundation for its action plan covering the 29th term. mercial markets to all markets and com- the Ministry of Industry, Trade and Tour- This came following thorough analysis and evaluation of the chamber’s internal systems, mercial centers in the Kingdom, in order to ism for two consecutive years with a qual- work mechanism, and its effectiveness in achieving its goals in line with Bahrain’s economic discuss the problems that face them with ity stamp approved by Bahrain Chamber Vision 2030. The action plan includes a number of programs and initiatives that are to be the concerned authorities in the Kingdom. of Commerce and Industry. pursued within a specific time frame and will be subject to objective evaluation according to 6-4 September 2018 29-30 November 2018 internationally recognized standards and Key Performance Indicators (KPIs). The plan will Cooperation of the Real Estate and Con- Participation of the Health Committee at be exhibited in the next annual report, as it was endorsed by the board at the outset of 2019. struction Committee with the Internation- the Bahrain’s 1st Dermatology, Laser and al Labor Organization (ILO) to organize a Aesthetic Conference in Bahrain. discussion session on the good practices 7-8 December 2018 to protect the interests of workers in the Determining the chamber’s values Participation of the Health Committee in building and construction sector. The board of directors devised and endorsed the cham- the Laser and Cosmetics Dentistry Confer- ber’s values and ethics in synergy to its vision and mis- 2 October 2018 ence and Exhibition. (7-8 December 2018) sion, and by means that aid the chamber’s development Cooperation of the Technology Committee 25-27 December 2018 with the Economic Development Board to march and strengthen its standing as a representative of The Finance, Insurance and Taxation organize (BCCI Summit: Products for the the private sector and an advocate of its interests. Committee’s initiative to organize a se- World Building Technology) ries of awareness raising workshops on 17 October 2018 the implementation of the value added Cooperation of the Technology Committee tax system for nine different sectors in- with the Chamber within the team devel- cluding: financial services, real estate and oping the electronic program used in the construction, and wholesale, both Chamber for accounts and customer ser- industry and tourism sectors (food and vices (BBMS (. The Committee also par- beverage), health, education, transport ticipated in the Mobile Phone Application and insurance. Development Team (BCCI Mobile APP) 24 October 2018 Launching the second edition of the Food Product Award by the Food Wealth Com- mittee. The winner will be announced during the first quarter of 2019. A pro- motional program was approved in coop-

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