Working with government to drive Bahrain's financial services strategy forward and help build a competitive and efficient business environment, the Financial Services Department has collaborated with key financial services stakeholders.
A final draft of the Limited Partnership Law has been developed in conjunction with the CBB increasing the sophistication of legal structures allowed in Bahrain.
These measures were taken in order to ensure prospective international partners have access to the information they need.
Our aim is to also develop quality new conferences which are focused on content and networking as opposed to being purely commercial. We partnered successfully with Euromoney Conferences, bringing them to Bahrain for the first time in 2012, with the launch of the Euromoney Private Banking Conference.
Accordingly, between 2012 and 2013 we relaunched the Bahrain Economic Quarterly, published the very first Bahrain Economic Yearbook (in 2013)
The team of investment officers work to ensure comprehensive information is provided to new and potential business interests. This includes support in finding companies for possible joint ventures and other forms of cooperation
Now, by virtue of the Apostille Convention, a document issued in a country which is a party to the convention can be certified for legal purposes in any other country that is a party to the convention - which stood at 105 countries by the end of 2013
These trends continued to grow in 2013 as the EDB managed to attract further intelligent investments in key sectors while exploring the expansion of existing businesses.
The legal team also spearheaded the development of a draft law on the Conflict of Laws designed to provide more certainty on determining the applicable law in disputes that involve more than one jurisdiction especially in the absence within contracts of an express choice of the governing law
The department's review of the economic reforms was published in the 2013 Arab World Competiveness Report, issued by the World Economic Forum.
Meeting on a quarterly basis, this partnership allows for further reliable demographic analysis and sector-level research as well as building awareness of economic concerns. Thus, the resultant strategy will ensure national economic alignment between the different public bodies and efficient planning.
the team structure was modified internally in order to improve delivery while key steps were taken to support our stakeholders and audiences. These included the organisation of regular sector roundtable discussions designed to collate information on the latest sectoral developments
The success of the 2012 edition was unprecedented as over 60,000 attendees and spectators were recorded. Designed to embrace and exchange culture in all its forms.
Underpinning our work has been our philosophy that 'excellence is the gradual result of always striving to do better.'
By far, the majority of articles generated were printed in national publications, including the Indian Economic Times, The China Economic Daily, Handelsblatt and the UK Financial Times, while 39.4% appeared in specialized trade publications.
Building a conducive business environment
Working with government to drive Bahrain's financial services strategy forward and help build a competitive and efficient business environment, the Financial Services Department has collaborated with key financial services stakeholders such as the Central Bank of Bahrain (CBB), the Bahrain Association of Banks (BAB) and the Bahrain Insurance Association (BIA) to further develop local industry. Creators of the Kingdom's first Financial Services Strategy (in association with the CBB), the focus areas, which are subject to continuous review and update, for the coming years are in line with Vision 2030. This cooperation has also led to the establishment of a new licence category for corporate finance firms as well as the development of a number of draft laws to support further growth in line with sector needs and the wider investment community. Along similar lines, the team are also undertaking a study examining the prospects of introducing a new independent Financial Advisor (IFA) regime in the Kingdom, and which will be reviewed in partnership with the CBB.
Enabling corporate growth
Alongside local partners, most notably the CBB, the Financial Services and Legal Departments have worked to introduce new legal structures devised to foster and further develop the asset management and financial services sectors. A final draft of the Limited Partnership Law has been developed in conjunction with the CBB increasing the sophistication of legal structures allowed in Bahrain. This structure would be available for the business of collective investment undertakings, private investment undertakings and other financial services that the Central Bank may determine.
Similarly, a Protected Cell Company Law is being drafted by the legal team in close cooperation with the CBBintroducing a new legal structure into the Kingdom which should increase Bahrain's regional competitiveness in the financial services sector. This new structure would be available for the business of private investment undertakings, collective investment undertakings, securitization, insurance captives and any other financial services that the Central Bank may determine.
In addition, the legal team is currently working with the CBB on revamping Bahrain's Financial Trusts Law to encourage further growth in the financial services sector and the number of trusts domiciled in Bahrain. These developments in legislation foster a more conducive business environment and answer the needs of the financial services sector to further foster its growth and competitiveness.
Encouraging informed decision-making
While we strive to promote business, we recognise the importance of making informed decisions, and as a result, the Financial Services team continues to cooperate with KPMG who produced an updated version of the 'Cost of Doing Business in Bahrain for Financial Services.' Likewise, the team also worked with Deloitte on the production of the Global Takaful Report, which reflected positively on the industry in Bahrain. Additionally, the team sits on the editorial board of the Bahrain Banker magazine which is published on a quarterly basis. These measures were taken in order to ensure prospective international partners have access to the information they need. We are also pursuing a regulatory comparative study, which compares Bahrain's regulatory regime to select regional and global jurisdictions including the DIFC, QFC, Saudi Arabia, FSA in the UK and MAS in Singapore. This study will eventually be expanded to a comprehensive study of the overall financial services sector in Bahrain analysing its key strengths and weaknesses which in turn will drive the future strategy for the sector.
Dedicated learning and networking
The best opportunity to meet with industry leaders and be exposed to new ideas and sectors is through conferences and their associated spaces or forums for knowledge exchange.Our Financial Services team participated in over 50 conferences, direct marketing campaigns and roadshows in the world's financial capitals. Our aim is to also develop quality new conferences which are focused on content and networking as opposed to being purely commercial. We partnered successfully with Euromoney Conferences, bringing them to Bahrain for the first time in 2012, with the launch of the Euromoney Private Banking Conference. This was the first private banking conference for Euromoney and in the region. This was further developed in 2013 to cover a wide array of economic sectors as the Euromoney Bahrain Conference. By meeting with key industry players, participants learned about new investment opportunities and benefited from the networking opportunities provided.
Research and planning
Committed to helping formulate evidence-based policies in order to achieve inclusive growth for the benefit of the people of Bahrain, the EDB Economic Planning & Development department oversees the collection of accurate and relevant data while conducting informed analysis. To this end, the macroeconomic and sectoral research overseen by our team furthers our understanding of the dynamics of the Bahrain economy and helps identify investment opportunities and partners. Accordingly, between 2012 and 2013 we relaunched the Bahrain Economic Quarterly, published the very first Bahrain Economic Yearbook (in 2013) in addition to a series of White Papers which evaluated the Bahrain opportunity for prospective investors and partners and provided informed and objective research on both the macro and micro levels.Similarly, the in-depth sectoral consultations identified key growth industries including ICT, logistics and financial services ' potential opportunities for well-paid employment of Bahrainis and economic development.
Facilitating business needs
FBuilding Bahrain's relationships with foreign partners has been a key objective of our Business Development department who have worked consistently to communicate the country's competitive advantages for each priority sector and assist investors by facilitating access to natural resources, commercial and industrial properties, commercial registration and related processes as well as advocating on behalf of international investors on critical policy issues related to the business environment with local government. The team of investment officers work to ensure comprehensive information is provided to new and potential business interests. This includes support in finding companies for possible joint ventures and other forms of cooperation. Some of our new and vested clients in 2012 and 2013, from amongst a total of 63 new companies which have registered in Bahrain during that period, have been Thomson Reuters Global Islamic Centre of Excellence, Julius Baer,Takaud, HDI-Gerling,Davis and Mills, Olayan Kimberly-Clark, Royal Bahrain Hospital, and United Parcel Service (UPS).
Empowering international navigation
Recognising the importance of international exchanges in business, our Legal team oversaw in 2012 and 2013 the enactment of two laws approving Bahrain's accession to two international conventions that are of great significance to the business community. The first law approved Bahrain's accession to the Apostille Convention and the second law approved Bahrain's accession to the Convention on Contracts for the International Sale of Goods.These are regarded as asignificant accomplishment for investors and the kingdom's economy. Now, by virtue of the Apostille Convention, a document issued in a country which is a party to the convention can be certified for legal purposes in any other country that is a party to the convention - which stood at 105 countries by the end of 2013.By virtue of the Convention on Contracts for the International Sale of Goods Contracts, unless parties to a contract agree otherwise, contracts for the international sale of goods would be governed by provisions that are laid down in a very widely used international convention familiar to the business community across the developed world which should help to further facilitate cross-border trade.
Promoting investment
The work of our Business Development teams has been varied in promoting investment opportunities through the widest channels possible, from supporting Bahrain embassies in their business functions and overseas visits by senior members of government, to leading trade delegations and shows. By expanding our internal team and hiring US and China country managers in 2012, the department was further enabled to support local and international business, organising direct marketing campaigns (DMCs) to Germany, Belgium and the Netherlands, conducting detailed in-house studies in important sectors ' plastics/chemicals, food, aluminium, steel and ICT ' and overseeing intensive DMCs to further attract investors from the GCC region.
These trends continued to grow in 2013 as the EDB managed to attract further intelligent investments in key sectors while exploring the expansion of existing businesses. The Business Development department also created a newsletter template ensuring that stakeholders were regularly updated about recent and current sector developments and opportunities. Roadshows and visits by senior members of government were organised to China, Japan, India and Germany and an ICT study was commissioned to identify growth opportunities in the sector.
Fostering Bahrain's business-friendly environment
The Legal department works closely with national stakeholders and reviews business related laws and regulations in force in Bahrain to ensure that they are as business-friendly as possible. In 2012 and 2013 this included draftinga law developed in cooperation with the Ministry of Industry and Commerce, introducing and amending certain provisions of the Company Law. These are designed to reduce many of the restrictions on foreign investors, allow new companies to be established more easily, allow virtual meetings of a company's board of directors (with the exception of listed companies), enhance provisions related to directors' liabilities and provide for a more robust corporate governance. In addition, a draft law on arbitration has been developed, which is largely based on the UNCITRAL Model Law on International Commercial Arbitration.The legal team also spearheaded the development of a draft law on the Conflict of Laws designed to provide more certainty on determining the applicable law in disputes that involve more than one jurisdiction especially in the absence within contracts of an express choice of the governing law.
Global Ranking Project
Furthering Bahrain's performance and competitiveness in key international indices, our Economic Planning & Development Department analysed the country's performance in 18 important international indices (amongst which were the Heritage Foundation Index of Economic Freedom, World Bank Doing Business Report, the Fraser Institute Economic Freedom Report, the United Nations Development Program Human Development Report and the World Economic Forum Global Competiveness Report) and recommended a strategy and priorities to enhance Bahrain's standing. The department's review of the economic reforms was published in the 2013 Arab World Competiveness Report, issued by the World Economic Forum.Overall, the Global Ranking Project overseen by the team helps to benchmark Bahrain globally, with an expanded focus on policy input, improving both the business environment and removing barriers to economic growth.
Strategising for economic prosperity
A key aspect to the operations of our Economic Planning & Development team is the collaboration with different stakeholders and government departments in order to draft the government economic strategy. To this end, the team has been engaging on a regular basis over the past two years with the relevant entities and has successfully revived the Inter-agency Forecasting Group ' composed of representatives from the EDB, Central Bank of Bahrain, Ministry of Finance, Ministry of Works, the Central Informatics Organisation and the National Oil and Gas Authority.Meeting on a quarterly basis, this partnership allows for further reliable demographic analysis and sector-level research as well as building awareness of economic concerns. Thus, the resultant strategy will ensure national economic alignment between the different public bodies and efficient planning.
Professional partner
Our Business Development team continues to play a critical role with public and private sector entities within the Kingdom as well as foreign investors by partnering with all interested parties in order to ensure the smooth operation of foreign direct investment and business relationships. As such, the team structure was modified internally in order to improve delivery while key steps were taken to support our stakeholders and audiences. These included the organisation of regular sector roundtable discussions designed to collate information on the latest sectoral developments; supporting the relevant governmental or semi-governmental stakeholders in addition to private sector stakeholders to ensure that projects reach completion; and reviewing issues raised by investors which relate to business operations and continuity within Bahrain with the relevant entities until resolution.
Orchestrating National Events
Continuing our support for national growth and creativity, the EDB sponsored and helped organise the annual Spring of Culture in 2012 and 2013 alongside the Bahrain Ministry of Culture. The comprehensive cultural programmes of the festival in its seventh and eighth editions were also supported by the Shaikh Ebrahim bin Mohammed Al Khalifa Centre for Culture and Research and a number of local art galleries.The success of the 2012 edition was unprecedented as over 60,000 attendees and spectators were recorded. Designed to embrace and exchange culture in all its forms from different parts of the world, this national festival reflects the EDB's commitment to the development and progress of Bahrain, and reinforces economic growth and prosperity through creative dialogue.
Feasting the Mind
Pursuant to its tradition of cultural reflection and presentation in the Spring of Culture, the EDB invited Latin music icon, Julio Iglesias to entertain audiences in 2012. Then in 2013,renowned Iraqi singer and composer, Kadhem Al-Saher and French-Armenian singer and songwriter,
Charles Aznavourwere invited to performamongst a roster of notable names and stimulating events. The festival catered to all tastes and demographic groups with family events, children's programmes, theatrical and visual presentations as well as a wide range of concerts.
Arabic-language and English-language activities from the Lebanese theatrical show, Sneezing Firas, and Australia's unique circus festival, Tom Tom Crew and Tap Dogs were organised for Bahrain's multi-ethnic communitywhile concerts by the likes of celebratedBlues and Jazz singer and musicianMelody Gardot, appealed to all groups.In line with the EDB's environment-friendly policy, the Spring of Culture communication was managed through the festival's dedicated online portal and online ticket sales were facilitated for the first time.
Reflecting opportunity
As the advantages and opportunities for investment in Bahrain have evolved, our Global Communications department has been working to ensure the widest possible audience is aware of the benefits associated with access to the Kingdom's economy and to the wider region. As a result, they have facilitated international media access to abroad range of Bahraini stakeholders including the CBB, ministries, and leading businesses in the country. Over 200 interviews have been organized with key spokes people in different countries including the GCC, China, Germany, United Kingdom and India, 140 press releases distributed globally, and 750 articles in leading publications generated worldwide. By far, the majority of articles generated were printed in national publications, including the Indian Economic Times, The China Economic Daily, Handelsblatt and the UK Financial Times, while 39.4% appeared in specialized trade publications amongst which were EMEA Finance, MENA Insurance Review, the China Securities Journal, Process Worldwide, DVZ and Digit Magazine. Similarly, the interviews organized also included appearances on Sky News, Deutsche Welle, and Bloomberg. With the return of sustained, non-oil-based private sector led growth global audiences are being informed of the attraction of the Bahrain, and by extension, the wider GCC market.
In addition, over forty-five international journalists were hosted by the EDB in Bahrain from diverse regions including India, Singapore, Malaysia, Japan, China, South Korea, Germany, UK and the GCC. The majority of the media representatives were in Bahrain on EDB-organised familiarisation visits to learn about the economic and business environment in the Kingdom, namely the opportunities available to international companies. In addition, a number of journalists were invited by the EDB to Bahrain to attend key events such as the World Islamic Banking Conference (WIBC), Middle East Insurance Forum (MEIF), IGN Convention and UN Public Services Forum.
Overall, the media visits in 2012-2013resulted in more than 500 items of news coverage across key media titles around the world which included Bernama (Malaysian National News Agency), The Malaysian Reserve, Nihon Keizai Shimbun (Japan), China Business News, Digit Magazine (India), Business India, Healthcare Express (India), Banking Frontiers (India), Manufacturing Today, Xinhua News Agency, Caixin Century, MaschinenMarkt (Germany), Process Worldwide, CHE Manager (Germany),Islamic Business & Finance, Reinsurance, The Korea Times, JoongAng Ilbo, Channel News Asia, FT (China) and the 21st Century Business Herald.
Creators of the Kingdom's first Financial Services Strategy (in association with the CBB), the focus areas, which are subject to continuous review and update, for the coming years are in line with Vision 2030.
These developments in legislation foster a more conducive business environment and answer the needs of the financial services sector to further foster its growth and competitiveness.
"Rent is at least 25% cheaper [in comparison with Dubai]. What’s more, the Bahrain Economic Development Board provides us with preferential policies for settling down in Bahrain." Xu Jun, Vice-President Huawei Technologies Middle East Region
We partnered successfully with Euromoney Conferences, bringing them to Bahrain for the first time in 2012, with the launch of the Euromoney Private Banking Conference.
We relaunched the Bahrain Economic Quarterly, published the very first Bahrain Economic Yearbook (in 2013) in addition to a series of White Papers.
"Any ReTakaful business, be it in Sri Lanka, Pakistan or Europe, will operate ReTakaful out of the centre of competence, which is here [Bahrain]… The reason for us setting up in Bahrain was that it provided us with the infrastructure and regulations which will foster the smooth development of ReTakaful." MahomedAkoob, Managing Director Hannover Re (Islamic Business & Finance)
The first law approved Bahrain’s accession to the Apostille Convention and the second law approved Bahrain’s accession to the Convention on Contracts for the International Sale of Goods.
The Business Development department also created a newsletter template ensuring that stakeholders were regularly updated about recent and current sector developments and opportunities.
"You're always welcomed in Bahrain and as an expatriate you experience the best local - expat interaction in the region." SaadOsseiran, Managing Director, CO-CEO Credit Suisse
The United Nations Development Program Human Development Report and the World Economic Forum Global Competiveness Report) and recommended a strategy and priorities to enhance Bahrain's standing.
The team has been engaging on a regular basis over the past two years with the relevant entities and has successfully revived the Inter-agency Forecasting Group composed of representatives from the EDB, Central Bank of Bahrain.
In order to improve delivery while key steps were taken to support our stakeholders and audiences. These included the organisation of regular sector round table discussions .
The comprehensive cultural programmes of the festival in its seventh and eighth editions were also supported by the Shaikh Ebrahim bin Mohammed Al Khalifa Centre for Culture and Research.
The Corporate Services Department has effectively transformed the organisation into a largely paperless and green environment between 2012 and 2013.
"Rapid economic growth in the Middle East offers good opportunities for international companies like APL. Bahrain is an important market for us we have experienced annual growth consistently in our six years here and our port is situated in a strategic location for our vessels, serving trade routes between Asia, theMiddle East and the Subcontinent. With Bahrain's proximity to growth areas such as the Northern Gulf, we can also tap into significant new business opportunities in the region. We are excited to be a part of the Kingdom's growth story." Mohan Ipe, General Manager APL Bahrain
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