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 At A Glance _3 2 Annual Report 2011 Bahrain Economic Development Board Profile Vision Mission The Economic Development Board (EDB) is a dynamic public agency with an We are dedicated to raising living To grow and diversify Bahrain’s economy overall responsibility for formulating and overseeing the economic development standards by creating greater opportunities by developing a strategy that supports the strategy of the Kingdom of Bahrain, and for creating the right climate to attract for our citizens, and to make Bahrain the advancement of a modern and liberalised direct investment into the Kingdom, in order to provide greater opportunities and Gulf’s most welcoming business-friendly business environment, encourages inward enduring prosperity for all Bahraini citizens. location. We will accomplish these goals by investment, and enables us to compete in working in partnership with the public and the global marketplace. The role of the EDB is to provide leadership by uniting all of Bahrain’s stakeholders under the Economic private sectors, and by being passionate, Vision 2030, and to develop key strategies for growth. The Board also acts as a facilitator, helping all professional and innovative in all that stakeholders to understand and adopt the changes necessary for progress. In addition, the EDB provides we do. sound project management to ensure that all agreed reform initiatives are implemented in an effective and timely manner. In line with its responsibility for attracting inward investment into Bahrain, the EDB is focusing on a number of target economic sectors in which the Kingdom offers significant strengths. These include financial services, downstream industries, tourism, business and professional services, logistics, healthcare, and education and training. Under the guidance of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince and Chairman of the Economic Development Board, the EDB is responsible for transforming Bahrain’s Economic Vision 2030 into reality through the implementation of actionable initiatives that will directly benefit all citizens of the Kingdom ofBahrain. _5 2011 marked the tenth anniversary of the National Action Now, almost ten years on from the establishment of the EDB, 4 Chairman’s Over the past nine years, Charter which, through the overwhelming democratic we are entering a new chapter. The commitment of His Statement endorsement of the people of Bahrain, formally heralded His Majesty to the reform programme remains undiminished. It the work of the EDB in Majesty King Hamad bin Isa Al-Khalifa’s comprehensive will inform our nation’s ongoing development, in which the reform programme. EDB will continue to play a pivotal role. diversifying the economy; It is important to remind ourselves of this programme’s This year, in challenging circumstances, the economy and the economic successes to date, successes in which the work of the EDB was tested. It was a test that was passed. in attracting investment and in Economic Development Board (EDB) has played an integral Throughout 2011, the economy continued to grow, companies role, while acknowledging the challenges that still exist and continued to arrive and Bahrain continued to develop. Annual Report 2011 embedding institutions to help deliver the potential still to be explored. Having withstood the global economic downturn, our strong economic fundamentals carried Bahrain through once again. Over the past nine years, the work of the EDB in diversifying the reform programme, has been both the economy; in attracting investment and in embedding Looking ahead, the EDB will continue to work to support institutions to help deliver the reform programme, has been these fundamentals – a highly skilled workforce, stable and significant and enduring. both significant and enduring. Since its establishment, the transparent regulation, an open business environment, EDB has overseen an economy that has grown by 6 per sustainable growth - while working to enhance the Bahrain Economic Development Board cent annually - an unparalleled period of prosperity that the attractiveness of Bahrain as a base to access the GCC market. country as a whole has benefited from. Importantly it will also continue to court investors coming to Bahrain, who are so integral to our economic success, while Over this time, the economy’s focus has moved away from oil shaping an environment that will have a tangible, positive dependence; the share of GDP from the oil sector dropping impact on the lives of all Bahrainis. from 25 per cent in 2001 to 13 per cent in 2011 while the financial sector’s share rose from 19 per cent to 25 per cent On behalf of the Economic Development Board, I would as the sector expanded by 125 per cent. Alongside this, like to express my sincere appreciation for the enlightened Bahrain’s export volumes have more than doubled and these leadership and vision of His Majesty King Hamad bin Isa too have seen a move away from oil dependence. Today, Al-Khalifa, and the support of the Government under the exports from the service industry account for nearly a third of guidance of His Royal Highness Prince Khalifa bin Salman total exports, with non-oil related goods accounting for more Al-Khalifa, the Prime Minister. than half of all export volumes. With God’s grace, the EDB will continue to devote its Perhaps most importantly, Bahraini employment grew by wholehearted efforts to strengthening the Kingdom’s 40 per cent, real wages by 62 per cent and unemployment economy in order to ensure greater personal prosperity and a decreased from around 15 per cent (2006) to just 3.6 per cent. higher quality of life for all citizens of Bahrain. These are no small achievements and vividly illustrate the economic successes achieved to date. But, they also underline the importance of the necessary work undertaken to realign Bahrain’s economy in a manner that is sustainable and builds upon the country’s core strengths: the talent of our people, the benefits of our location and the HRH Prince Salman bin Hamad Al-Khalifa openness of our business environment – an environment Crown Prince and Deputy Supreme Commander underpinned by strong, dependable regulation. Chairman of the Economic Development Board Of course, 2011 also marked a difficult period for the region. The unrest that affected many countries in the Middle East also had its impact here in Bahrain. The issues it raised set our nation a challenge and the EDB played a significant role in contributing to the vital initiatives, including the National Dialogue and the Bahrain Independent Commission of Inquiry, that met the challenge in the continued spirit of reform. It is indicative of Bahrain’s commitment to reform that it remains the only country within the context of the regional HRH Prince Salman bin events of 2011 to have conducted a full, independent and Hamad Al-Khalifa legitimate inquiry into its handling of the situation. Crown Prince and Deputy Bahrain also remains the only country in the region, with Supreme Commander the exception of Morocco, to have responded to events by Chairman of the Economic engaging actively in a series of inclusive and direct dialogues, Development Board to address political and social issues and to lay the framework for further reforms. Board of Directors _7 7 6 Annual Report 2011 CHAIRMAN His Royal Highness Prince Salman Bin Hamad Al Khalifa Bahrain Economic Development Board The Crown Prince, Deputy Supreme Commander MEMBERS HH Sh. Mohammed bin Mubarak HE Dr. Majid bin Ali Al Nuaimi Mr. Jawad Habib Jawad Al Khalifa Minister of Education Senior Partner, Jawad Habib Group Deputy Prime Minister for Ministerial Committees HE Dr. Abdul Hussain bin Ali Mr. Sameer Abdulla Nass Mirza Chief Executive, Nass Group HH Sh. Ali Bin Khalifa Al Khalifa Minister of Electricity & Water affairs Deputy Prime Minister for Ministerial Mr. Talal Alzain Committees HE Dr. Fatima bint Mohammed Al Bahrain Mumtalakat Holding Balooshi Company HH Shk. Abdulla bin Hamad Al Minister of Human Rights & Social Khalifa Development Ms. Elham Abdulla Hassan Personal Representative of His Chairperson, Healthcorp Middle East Majesty the King, President of the Minister of Health Limited Public Commission for the Protection HE Rasheed Mohammed Al Meraj of Marine Resources, Environment & Mr. Atif Ahmed Abdul Malek Wildlife Governor, Central Bank of Bahrain Chief Executive Officer, Arcapita Bank HH Sh. Naser bin Hamad Al HE Sh. Khalid bin Ali Al Khalifa Mr. Jalal Ahmed Al Aali Khalifa Minister of Justice & Islamic Affairs Chief Executive, Ahmed Mansoor Al Chairman of the Board of Trustees Aali Co. HE Sh. Mai bint Mohammed Al of the Royal Charity Association, Khalifa Mr. Adel Hussain Al Maskati President of the Bahrain Royal Minister of Culture Equestrian and Endurance Federation Managing Director, Al Maskati Group HE Dr. Juma Al Kaabi HE Jawad bin Salem Al Arrayed Mr. Tariq Jalil Al Saffar Minister of Municipality & Urban Deputy Prime Minister for Ministerial Managing Director, Harbour Planning Committees Investment Holding HE Jameel bin Mohammed HE Sh.