His Royal Highness Prince Salman Bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and Chairman of the Economic Development Board (EDB), on June 7, chaired the EDB’s Board of Directors board meeting, at Riffa Palace. During the meeting His Royal Highness advised the board to stay up to date with the investment strategies regionally and globally in order to take advantage of sources and resources the Kingdom has to offer, mainly to achieve economic growth which will in turn promote economic development, and the well-being and prosperity of the citizens.

His Royal Highness outlined, that the next phase of the work of the Economic Development Board requires redirecting its efforts related to investment promotion and economic planning in close cooperation with the Government which comes as part of clear, long-term strategic priorities with its implementation leading to achieve the ultimate goal of sustainability.

The meeting commenced with ratification and review of minutes of the prior Board meeting, after which, Mr. Khalid Al Rumaihi, CE of the Economic Development Board (EDB),  gave a comprehensive presentation over the proposed investment plan of the EDB which included strategic priorities, that will form the guidelines for the Kingdom’s investment promotional plan. The plan will attract investment globally, regionally and from target markets in the coming years. Mr. Al Rumaihi also explained that over the past three months, the EDB had worked on creating a high level plan to determine the investment attraction focus markets, which includes economically vital and competitive sectors.

Furthermore, discussion ensued with regards to the newly proposed organisational structure of the EDB in lieu of the investment promotion plan, whereby talks centered over methodologies to increase the productivity of the EDB as well as the steps required to allow implementation of the investment promotion plan in accordance with the highest possible standards. The CE further explained that the new organisational structure will ensure that the EDB is more capable of economic planning and the promotion of the Kingdom in the target markets, stressing that it will be working with its public and private sector partners to achieve measurable results that will contribute to the sustainability of economic development and diversification, as well as creating employment for Bahrainis. Mr. Al Rumaihi closed the meeting welcoming board of members’ proposals, as well as noted that the new EDB structure will be panned out in the second half of 2015.

The visit, conducted between 4th and 8th May 2015, was scheduled to tie-in with the prestigious Transport Logistic exhibition in Munich, and included a series of meetings with senior officials and businessmen.

During the visit, the delegation met with H.E. Alexander Dobrindt, German Federal Minister of Transport and Digital Infrastructure, H.E. Parliamentary State-Secretary Dorothee Bär, and H.E. State-Secretary Franz Josef Pschierer of the Bavarian Ministry of Economics, Energy, Media and Technology. In addition, the EDB participated in the official opening ceremony of Transport Logistic 2015 where a Bahrain Pavilion showcased the Kingdom’s attractive business environment to German and international investors. Furthermore, Mr. Khalid Al-Rumaihi attended meetings with a number of public officials, including a meeting with H.E. Olaf Lies, Lower Saxonian Minister for Economic and Labour Affairs and Transportation, as well as senior representatives of private sector businesses such as Rhenus SE, Kühne+Nagel AG, Lufthansa Cargo AG, DSV A/S AG, Hellmann GmbH and Dachser Group SE.

The delegation also attended a lunch hosted by Messe München GmbH and, following a meeting with H.E. State-Secretary Pschierer where Mr. Khalid Al-Rumaihi and other members of the Bahrain delegation presented Bahrain’s economic story and key competitive advantages to Bavarian companies and ministry officials, they attended a dinner reception hosted by the Bavarian Ministry of Economics, Energy, Media and Technology which was co-organised by the German Chamber of Commerce and Industry for Saudi-Arabia and Bahrain.

Furthermore, the delegation attended a high-level Bahrain-German Dinner hosted by Mr. Khalid Al-Rumaihi and the German-Arab Friendship Society (DAFG e.V.), which included companies such as Siemens, SMS Meer, BMW, Munich Re, Rohde+Schwarz and RMA, as well as a briefing and business breakfast hosted by DVZ where delegates were given the opportunity to network with their German counterparts and discuss opportunities for further cooperation. A number of B2B meetings were also conducted between representatives from the Bahrain delegation and their German counterparts on the side-lines of the exhibition.

Mr. Al Rumaihi, Chief Executive of the EDB said:

“We have a very strong story to tell. The Gulf has grown rapidly in recent years. It is now a $1.6 trillion market and in spite of the decline in the oil price, it is expected to reach $2 trillion by 2020. The long-term prospects for this growth are underpinned by a number of factors; the population is young, growing and increasingly educated and we are diversifying our economies away from oil and gas.

“The countries of the Gulf are not only more connected to each other than ever before, but they are also increasingly at the centre of global flows of people and goods. As a result, it is hardly surprising that transport and logistics is one of the most important areas of growth in the region and attracting attention from international investors.”

H.E. Hassan Al Majed, Undersecretary of Ports & Maritime Affairs said:

“Strategically located at the heart of the Gulf, Bahrain has long been considered the gateway to the GCC. With the shortest travel time in the region between its seaport, airport, and the logistics processing zones, Bahrain enables more efficient and faster processing of trade goods and some of the lowest operating costs.”

“Bahrain is also connected to the Gulf’s biggest market, Saudi Arabia, by King Fahad causeway. With the second causeway linking Bahrain to Saudi Arabia and a new railway connecting Bahrain to the GCC rail network are also planned, Bahrain is set to be even more connected to its neighbours.”

A large number of German businesses have already established operations in Bahrain as a means of accessing the wider GCC market, including BASF, RMA, SMS Meer, Allianze Global Investors, Hannover Re and Reihnmetall Armacell. Leading German logistics companies with offices or facilities in Bahrain include: DHL, Schmidt Middle East logistics JLT and Talke Logistics.

The delegation’s visit represents the latest in a series of visits by Bahraini officials to Germany. In April, the EDB sponsored the 6th Ghorfa Education & Vocational Training Forum in Berlin, and a delegation led by Bahrain EDB and including officials from the National Institute for Industrial Training (NIIT) and Tamkeen, attended the event. During the visit several meetings were arranged for NIIT and Tamkeen with their German counterparts to discuss possible future partnerships and training programmes. In December, NIIT, signed a Memorandum of Understanding (MOU) with the Education Center of Rheinmetall MAN Military Vehicles in Kassel, Germany, to promote cooperation in the fields of apprenticeship and training.

Most recently, German company Armacell, a world leader in flexible insulation foams for the equipment insulation market and leading provider of engineered foams, announced plans to build a new manufacturing facility in Bahrain. The plant, which will be located at the Bahrain International Investment Park (BIIP), will produce elastomeric rubber insulation for the US$3 billion heating, ventilating, and air conditioning (HVAC) market in the GCC.

Additionally, a Bahraini delegation visited Berlin in 2013 to participate in the 16th Arab German Economic Forum. The Forum, which was held under the patronage of HE Dr Philipp Rosler, the German Federal Minister of Economics and Technology, is organized by the Arab-German Chamber for Commerce and Industry, and the General Union of Arab Chambers of Commerce and was supported by the EDB and BCCI.

The Forum shed light on economic and trade issues, especially in the infrastructure, logistics, information technology, manufacturing and financial services sectors, as well highlighting the role of small and medium enterprises, family businesses, and businesswomen.

The size of trade between Bahrain and the Federal Republic of Germany amounted to over 5 million USD in 2012, with aluminum representing almost 76% of Bahrain’s exports to Germany. At the same time, car and transport vehicles were the main imports by Bahrain, which amounted to around 37% of imports, including machinery, chemical products and food.

Among the many visiting Chinese delegations to Bahrain were the China Arab Council for Investment Promotion (CACIP) and the Guangdong Federation of Industry and Commerce (GFIC).  An official trade delegation representing Hunan province’s  Department of Commerce  also visited Bahrain, resulting in the signing of a memorandum of understanding between the EDB and the Department of Commerce “Hunan”. The agreement aims to promote economic and investment cooperation in many sectors; notably infrastructure, banking and financial services, manufacturing, energy, pharmacy, technology, communications and consumer goods.

The visits highlight the importance and size of the economic and trade ties between Bahrain and China, which reached 1.98 billion US dollars, excluding crude oil in 2014. The highest imports between the two countries in order of ranking are machinery and mechanical appliances followed by metals, while for the same year, chemicals were the most prominent exports.

To strengthen further cooperation, the EDB organised a business visit for Chinese state owned “CITIC” Group, a Chinese state-owned conglomerate whose business lines include full-range financial services, real estate and infrastructure, engineering contracting, energy & resources, manufacturing and others. CITIC Limited is its major business platform which is listed in Hong Kong Stock Exchange. By the end of 2014, CITIC Limited has a total assets value of 5,948 billion HK dollars, with revenue totaling 402 billion HK dollars and net profit standing at 39.8 billion HK dollars. CITIC Group’s ranking has risen in the Fortune Global 500 list of the world’s largest corporations from 194 in 2012 to 160 in 2014.

The EDB’s efforts continued with the organising of a journalist familiarisation trip to promote cooperation with leading Chinese media publications. The EDB hosted a group of journalists representing “The Economic Observer “, “China Economic Herald”, “Asia Pacific Times”, and “Caixin” to promote investment opportunities and to highlight competitive advantages of the Kingdom’s as well as the growing economic relations with the People’s Republic of China.

During the visit, the EDB organised meetings and interviews with members of the private and public sector for the Chinese media delegation, such as Bahrain International Investment Park (BIIP), the Central Bank of Bahrain (CBB), Tamkeen, along with a tour to the site “Dragon City” project with Chinamex officials.The Chinese delegations which visited the Kingdom also reviewed economic advantages of the unique economic and liberal investment climate in Bahrain which gives a chance for international investors to access the GCC market, as well as the EDB’s role in facilitating investment in different sectors. The delegations also met a number of officials in the public and private sector in the Kingdom.

Being an important market, the EDB has early on worked to strengthen and build economic relations with China. In October 2014, the EDB organised a 10 day roadshow to China for a high-level Bahraini delegation. The Roadshow visited four commercial hubs in China; Beijing, Guangdong, Schenzhen, Hong Kong, and resulted in the signing of 13 Memoranda of Understandings with a number of Chinese businesses and organisations, whereby the delegation aimed at enhancing trade and economic relations between the Kingdom and China. The roadshow followed His Majesty King Hamad bin Isa Al Khalifa, King of Bahrain’s visit to China in September 2013 to attend the China Arab States Expo as the first guest of honor.

As part of the EDB’s strategy to attract FDI to Bahrain, and focus on targeted sectors that provide a competitive edge to Bahrain, the EDB established the EDB established an international office in the People’s Republic of China in 2013, which plays an important role in promotion of the Kingdom to China and invitation of delegations to visit the Kingdom.

More than 200 leading prominent angel investors, dynamic start-ups from the MENA region, and members of the local media, gathered in Bahrain for the commencement of the second MENA Angel Investors Summit 2015. The event, was held at the Four Seasons Hotel, and organised by Tenmou, Bahrain’s First ‘Business Angels’, in strategic partnership with the Economic Development Board (EDB).

The high-profile event was officially inaugurated by Mr. Sami Jalal, Chairman of Tenmou. In a fast-paced and exciting agenda, 45 dynamic fast-growth start-ups from Bahrain, Saudi Arabia, UAE, Lebanon, Morocco, Palestine, Egypt, and Jordan, presented their business pitches to the angel investors in attendance in hopes of procuring more funding to take their businesses to the next level.

​The International Institute for Strategic Studies (IISS)’s Bahrain India Forum was held in New Delhi, India. The event, sponsored by the Bahrain Economic Development Board (EDB), evaluated the changing dynamics of Gulf-Asia economic and diplomatic links, and discussed regional demographic and labour market trends and opportunities for Indian businesses to access fast growth in the Gulf, using Bahrain as an example of successful economic diversification.

In 2014, the logistics sector contributed 7% to the Kingdom’s real Gross Domestic Product (GDP) and as per statistics from the Central Informatics Organization (CIO), the annual growth rate of the Transport and Telecommunications industry reached 6.2% in 2014 highlighting the sector’s strong economic performance in recent years.

This growth has been supported by Bahrain’s business environment, which has been recognised for its openness – Bahrain currently ranks 18th freest economy in the world, and first in the MENA region the Heritage Foundation’s Index of Economic Freedom – and is distinguished by its skilled national workforce, low operating and living costs, and competitive taxation system.

This along, with the signing a Free Trade Agreement (FTA) with the United States of America, and through its role as a key player in enabling the GCC countries to sign FTAs with the EU, China, Japan, Iraq, and Australia, means that companies looking to expand into the region, and to trade internationally, are able to take advantage of the competitive advantages of the Kingdom.

In addition to its competitive advantages, the Kingdom constantly looks to developing its industries and diversifying its economy, a process which has led Bahrain to become one of the most diversified economies in the region, with the Oil and Gas sector accounting for a fifth of the Kingdom’s GDP, compared to 44% in 2000. One of the key sectors that have contributed to this change is the logistics sector. Given the Kingdom’s size and proximity to the neighboring GCC countries, many companies, particularly in logistics, choose to base their operations out of Bahrain in order to access the GCC, and with the shortest travel time in the region between its seaport, airport, and the logistics processing zones, Bahrain enables efficient and fast processing of trade goods, offering the best value for money when it comes to operating costs.

There are a number of noteworthy infrastructure facilities in the Kingdom, including the the $360m Khalifa Bin Salman Port, which started operations in April 2009 and has since offered world-class services to shipping lines, freight-forwarders and beneficial cargo owners facilitating growth for the local economy and enhancing supply chains for the Northern Gulf. Built in the northeast of Bahrain, it is only 13 km from Bahrain International Airport and is linked to Saudi Arabia by the King Fahd Causeway and Feeder vessels.

The Khalifa Bin Salman Port has witnessed a great deal of success on account of new services connecting Bahrain to global markets, safety practices, operational excellence.

In a pioneering example of a public-private partnership, The Khalifa bin Salman Port is operated by APM Terminals Bahrain, which has a 25 year concession, and oversees the management and operations of the port.

Bahrain International Airport (BIA) hosts 27 commercial airlines and 11 cargo airlines, and provides sophisticated facilities for logistics operators. Just 13 kms from two other key developments, the Bahrain Logistics Zone (BLZ) and the Khalifa Bin Salman Port, the airport offers access to Bahrain and the wider region. In terms of capacity, 322,734 tonnes of cargo can be carried a year and considerable expansion is in progress.

In January 2011, the BAC signed an agreement with MENA Aerospace to build and operate one of the region’s largest private and general aviation hangar complexes in order to create an expanded cargo handling facility that would triple Bahrain’s international air cargo capacity to one million tonnes a year – comparable to London’s Heathrow Airport – with the ability to handle 27 large cargo planes at any time. According to BIA statistics, around 9 million passengers pass through the airport on average each year.

In January 2014, Bahrain Airport Company signed a BD13 million agreement with Aeroport de Paris Ingénierie (ADPI) who will serve as design and engineering consultant on the Airport Modernisation Programme. This agreement is expected to elevate the airport’s infrastructure and services to a level whereby it can increase the airport’s capacity to 14 million passengers per year.

An agreement was also signed with Chinese Shenzhen CIMC Tinda Co. Ltd to the tune of BD1.2 million for construction of seven new commuter bridges between the airport boarding gates and passenger planes. In January, a BD6.9 million agreement with Hill International to provide project management consultancy services for the Airport Modernisation Programme was also announced.

Salman Industrial City opened in January 2010 and includes several key infrastructure projects in the Hidd area such as the Bahrain International Investment Park (BIIP), Bahrain Investment Wharf, and the Hidd industrial Zone. It is adjacent to the Khalifa bin Salman Port and is serviced by excellent infrastructure. BIIP is host to a number of leading international companies, including Mondelez International, MTQ Corporation, Abahsain Fiberglass, RMA Middle East, BASF, JBF and Siemens.

The Land Transportation Directorate within the Ministry of Transportation and Telecommunications is responsible for public transport in the Kingdom of Bahrain. The Ministry is embarking on several projects that are aimed at improving the public transport system in the Kingdom, and has offered a tender for the appointment of a new operator to run the public transport network which includes the procurement of new buses, which was awarded to a joint venture by National Express and Bahraini conglomerate Ahmed Mansoor Al A’Ali, as well as other projects to modernise bus stations, ticketing systems, information systems, as well as the rehabilitation and development of the existing bus exchanges and depots.

Launched in 2008, Bahrain Logistics Zone (BLZ) is the only dedicated Customs Bonded Area focused on value-added logistics in Bahrain. It is also the Middle East’s first multi-model logistics hub to focus on re-export and value-adding logistics. The Bahrain Logistics Zone, which is in close proximity to the Khalifa bin Salman port, has gained the attention of international logistics players and signed various leasing contracts. It was chosen by Almoayed Wilhelmsen, Aramex, Cargo Partners, Bandar Al-Khaleej-Bitu-Mena, and also Schmidt Middle East Logistics, who in December 2014 announced that building had begun on a $30 million dry bulk logistics hub in Bahrain. The facility will ultimately store around 30,000 metric tonnes of materials.

In terms of infrastructure projects and roads, Bahrain has witnessed in recent years the development and implementation of a number of large-scale projects, and has pledged $694 million in ongoing investment to such projects, which included the reconstruction of the Sitra crossing which was completed in 2011, and the Shaikh Khalifa Bin Salman Highway, adjacent to Mina Salman intersection project. In August 2014, the Minister of Works, H.E. Engineer Essam bin Abdullah Khalaf, announced the Ministry’s plans to study the construction of a fourth causeway to link Muharraq and Manama.

The Logistics sector has already attracted a number of leading international companies to establish headquarters in Bahrain in order to access the neighbouring GCC economies, including DHL, Aramex, KWE and Agility. With the announcement in 2014 of plans to invest $22 billion in key infrastructure projects over the coming years, across a range of sectors including transport, housing, manufacturing, energy, healthcare and education, further development is expected across a range of sectors, including the logistics sector.

Under the Patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander, and Chairman of the Economic Development Board (EDB), Bahrain hosted the Pan Arab finals of the Microsoft Imagine Cup 2015. Microsoft together with the EDB, Tamkeen and the eGovernment Authority (eGA) announced the names of the three winning teams of the event.

The event was organised in strategic partnership with the EDB and supported by a number of local organisations such as Tamkeen, eGA, the Telecommunications Regulatory Authority (TRA), National Bank of Bahrain (NBB), Bahrain Airport Company (BAC), YK Almoayyed, Batelco, Exceed IT Services & Training, and Gulf Future Business.

With youth representing a large segment in Bahrain, and the largest pool of the workforce, events such as these signify the importance of strengthening creativity and innovations in youngsters in the Kingdom to keep up with the global transition to a more knowledge-based economy. Imagine Cup allowed the participating teams to refine their skills, invest in their creative capabilities, and unleash their entrepreneurial ideas in order to achieve excellence on the local, regional, and international fronts.

Team T2 from Tunisia, Team BCR from Palestine and Team Freedom Fragrance from UAE will travel to Seattle to represent the Arab World at the Worldwide Finals. Team BCR from Palestine was then named Arab World Champion taking home the Imagine Cup trophy and a special award, one-week internship at Tech Wadi, Silicon Valley.

‘Back in Time’ by Team T2, winner of Games category, is a 3D game where the player is able to play as a young character in a post-apocalyptic era. Earth is destroyed by nuclear war and most of its population turned into zombies. The player will travel back in time to save the world by infiltrating military zones and disabling nuclear heads in it.

‘Brain Controlled Robot’ by BCR Team, winner of Innovation category, uses EEG signals or brain waves reading technologies to help paralysed people around the world communicate with the people around them, also give them access to control things that make them partially independent on others help.

The Imagine Cup Pan Arab Semi-Finals was a culmination of a months-long series of contests that brought together the brightest young minds from various Arab countries to showcase the power of student innovation. Thirty-six student teams, first-prize winners of the national rounds of Imagine Cup 2015 in 13 countries from Middle East and North Africa region all competed for the Imagine Cup 2015 Pan Arab Champion title.

The 36 student teams presented their projects to different judging panels, two panels for each of the 3 categories; they assessed the projects based on the Imagine Cup criteria for each category including concept, execution, use of technology, relevance to the category, and feasibility. The first-place winners: Team T2 (Games), Team BCR (Innovation), and Team Freedom Fragrance (World Citizenship) then went on to compete live on stage before an audience of 300 people where a distinguished judging panel asked them three rounds of questions inspired by Imagine Cup Infographic “Dream it! Build it! Live it”; Team BCR received the Imagine Cup Pan Arab trophy and a one-week internship at Tech Wadi, Silicon Valley.