Leading German Companies Showcase Products and Services in the Kingdom

Posted on by edbclient

May 29, 2014

Manama: The Economic Development board welcomed the participation of leading German companies from a variety of sectors in the first combined German Breakfast & Catalogue Show, held in the Intercontinental Regency Hotel in the Kingdom of Bahrain.
Also participating in the show were high level business men and women, as well as top decision makers and chief executives, who were given the opportunity to meet with representatives from German companies that have established operations in the region, in order to exchange experiences, share ideas, and explore means of developing relationships further and building commercial partnerships.
The attendees also included the Delegate of German Industry and Commerce for Saudi-Arabia, Bahrain and Yemen, Mr. Andreas Hergenroether, the Deputy Head of Mission – Embassy of the Federal Republic of Germany in Bahrain, Mr. Holger Tillmann, and the Second Deputy Chairman of the Bahrain Chamber of Commerce and Industry (BCCI), Mr. Jawad al Hawaj.
Mr. Yousef Al Khan, Manager of International Relations – Business Development at the EDB gave a speech highlighting the importance of Bahrain-German relations, and the investment opportunities available to German investors, as well as the strengths of Bahrain’s economy, including its competitiveness and ideal location in the Gulf, which German companies looking to invest in the region can take advantage of, in order to access the Gulf’s $1.5 trillion market.
The Catalogue Show, organized by the German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia), was inaugurated by BCCI Chairman HE Khalid Abdulrahman Almoayyed at the Chamber of Commerce, and saw the participation of twenty-five German companies from a variety of sectors, including manufacturing, engineering, fashion, ICT, chemicals, food manufacturing, and healthcare.
The German Catalogue Show held in Bahrain follows recent shows in Riyadh, Dammam, and Jubail, in the Kingdom of Saudi Arabia this month, which also concluded successfully, and is a sign of the further development of the Show since its initial launch in the Kingdom of Saudi Arabia in 2004.
The event was sponsored by Lufthansa, DHL Express, and Burj Rafal Hotel Kempinski.
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For further information:National Communications

Phone: 17589966

Email: NC@BahrainEDB.com

Bahrain Economic Development Board Meets with Malaysia-Based “Pharmaniaga”

Posted on by edbclient

May 26, 2014

Manama: HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain Economic Development Board (EDB) met with a delegation from Malaysia-based Pharmaniaga, one of the world’s leading manufacturers and distributors of generics, and distributors of medical devices.

The discussion centered around the company’s future plans, as well as the various investment opportunities found in the Kingdom, which are led by the country’s liberal economic environment. Also explored were the policies governing the manufacturing sector and the efforts by the EDB to drive foreign direct investment into the Kingdom and encourage companies to make Bahrain a headquarters for their operations in the region.
Commenting on the visit, Ms. Vivian Jamal, the Executive Director of the Business Development at the EDB said, “It is our pleasure to meet with the delegation from the Malaysia-based Pharmaniaga to discuss and explore Bahrain’s investment opportunities and economic climate. We are proud of the fact that many large international companies such as Pharmaniaga, find Bahrain to be an ideal location from which they can take advantage of the growing GCC market, which is currently worth $1.5 trillion. This is indicative of the Kingdom’s positive and competitive economic environment, which actively encourages investment, and also boasts one of the most highly skilled workforces in the region”.
Pharmaniaga have factories in both Malaysia and Indonesia, and their products and medicines cover around 150 hospitals, and over 2000 health centers in Malaysia. The company holds around a 60% market share in government hospitals, and manages its own supply chain, starting from their warehouses, to the hospital stores and inventories. Pharmaniaga products include, anaesthetics, analgesics, antihistamines, antidotes, as well as cardiovascular, immunological, and respiratory medication.
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For further information:
National Communications
Phone: 17589966
Email: NC@BahrainEDB.com

Economic Development Board Hosts Chinese Journalists

Posted on by edbclient

May 26, 2014

Manama: The Economic Development Board (EDB) is hosting this week a Chinese journalist delegation to promote investment opportunities in the Kingdom and further strengthen bilateral ties between the two nations.

The journalists and editors represent a number of high profile Chinese publications including the China Business Journal, Global Entrepreneur, and Economic Daily. The trip follows the two nations celebrating 25 years of bilateral relations last month, and HM the King’s visit to the China-Arab States Expo Opening Ceremony as the first guest of honor, at the invitation of the Chinese Government.
The four-day visit includes meetings and interviews with a number of public and private sector representatives such as the EDB, Central Bank of Bahrain (CBB), the Bahrain International Investment Park (BIIP), Chinamex Bahrain Management Company and China Harbour Engineering. Additionally, the journalists will also experience Bahraini culture with visits to Bahrain Fort, traditional houses in Muharraq, and Al Fateh Mosque.
H.E. Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the EDB said:
“Trade and culture ties have existed between Bahrain and China for years, evident in finds in archeological sites across Bahrain, dating to over 500 years ago.”
“Today, alongside trade, Chinese businesses have also been utilizing Bahrain’s status as the gateway to the GCC market, which is worth more than $1.5 trillion, and expected to reach $2 trillion by 2020. Leading Chinese companies, like Huawei, Bank of China, and China Harbour Engineering, are taking advantage of our low operating costs and highly skilled workforce by setting up business in Bahrain.”
In 2011, China became the largest importer to Bahrain, with non-oil imports totaling more than US$1 billion. With approximately 1,000 Chinese nationals living in Bahrain, China is currently the third largest non-GCC market for Bahraini exports.
In 2012, Diyar Al Muharraq signed an agreement with the China Middle East Investment and Trade Promotion Center FZCO (Chinamex) to establish and operate the first Chinese city development in the Kingdom of Bahrain. The Dragon City project will be marketed and managed by Chinamex and will be a large-scale trade platform with functions of product exhibition, retail and wholesale, with Chinese architectural and cultural aspects. The proposed Dragon City will house about 500 Chinese companies and is envisaged as a Chinese themed retail shopping mall. It will consist of a large number of markets and shops over a wide area of up to 120,000 sq. mtrs.
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Notes to editors
For further information:
National Communications
Phone: 17589966
Email: NC@BahrainEDB.com

Representatives from T-Linx Technology Solutions Architect and the Bahrain Economic Development Board

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May 25, 2014

Manama: In a further sign of growth in the Bahraini IT industry, T-Linx Technology Solutions Architects, a leading Bahrain-based technology consultancy firm, has announced that it has signed a cooperation agreement with LZ group, a Dutch ICT company and the developer of monPARK, a smart city service which provides efficient parking management systems.

The Memorandum of Understanding (MOU) a two-year collaboration between the two companies, will  bring smart parking technology solutions to Bahrain and the wider GCC region with the introduction of monPARK,  a wireless solution combining mobile-based parking payment platforms and mobile-based applications to reduce congestion.
The Economic Development Board (EDB) played a key role in the development of this partnership, as part of its efforts to support businesses looking to access the Bahraini and wider GCC market. Ms. Vivian Jamal, Executive Director, Business Development of the EDB said: “We are delighted to have been able to play a role in initiating this partnership. The Kingdom has long been regarded as one of the Gulf’s technological pioneers, and this partnership is an excellent example of bringing new and innovative solutions to the region as part of our drive to create a diversified economy. With the introduction of agreements such as these, Bahrain is able to embrace new ICT solutions, and the Bahrain Economic Development Board is actively looking for ways to support local businesses, and introduce them to international companies looking to invest in Bahrain and the region”.
T-Linx Technology Solutions Architects CEO Mr. Waleed Khalaf commented on the agreement, “We are delighted to be making this announcement today, which will help us to increase the range of services we are able to offer businesses in Bahrain and the GCC. Having access to leading international technology solutions with strong local support is key to the success of any project, and we believe that through our collaboration with LZ Group we will achieve the winning formula to benefit our customers.”
LZ Group CEO, Mr. Dragan Zivkovic also commented saying, “We are very pleased to be working with T-Linx as we look to expand our work in the Gulf region. Bahrain’s central location makes it the perfect place to access the wider GCC area, and the additional value of having a local partner will help us understand the needs of the market, and provide our local and regional clients with the necessary after-sales support and project management, thus delivering a truly individual experience to each project”.
Bahrain’s progress in the ICT industry is demonstrated by the 2012 UN eGovernment Readiness Survey, placing the Kingdom 2nd in the MENA region. The Survey placed Bahrain 36th of 192 countries worldwide in its application of ICT to provide access and inclusion for its citizens. In the Survey, Bahrain outperformed the world average across eReadiness, Web Measure, Infrastructure, Human Capital and e-Participation.
Photo Caption:
Representatives from T-Linx Technology Solutions Architects sign two year agreement with representatives from Dutch-based LZ Group in the presence of Ms. Vivian Jamal, Executive Director, Business Development – Bahrain Economic Development Board
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Notes to editors:

Further information:

Economic Development Board
Tel: +973 17 589 966
Email: NC@BahrainEDB.com
About T-Linx Technology Solutions Architects: 
Established in 2008, T-Linx is a 100% Bahraini company.
T-Linx offers technological solutions services across all sectors, including real estate, commercial, hospitality and education. T-Linx is the first of its kind company in Bahrain offering consultancy services to companies that require to implement the latest technologies in terms that sacrifice neither the quality of the desired products nor the integration of the products implemented. This service is of increasing relevance, given the growing complexity of today’s technology market.
Further information:
Daneh Al Rayes, Vice President T-Linx Technology Solutions Architects
Tel: +973 17297338
Email : dalrayes@t-linx.net
About monPARK and LZ Group:
LZ Group B.V is an Information, Communication, and Technology (ICT) company headquartered in the Netherlands. The company focuses on the programming, development, and implementation of ‘Smart City’ mobile-based applications and services, leveraging the extensive telecommunication expertise and experience of its executives and engineers. The main goal of our ‘Smart City’ solutions is to provide mobile-based solutions to our customers in a wide variety of areas to solve challenging issues.
monPARK® is a platform focused on improving the quality, efficiency, and automatization of city’s parking services. monPARK®’s wireless solution combines a mobile-based parking payment platform and mobile-based applications to reduce urban congestion.
For more information on LZ Group and monPARK®, visit www.monpark.eu.

EDB Takes Part in Middle East Petrotech 2014 Discussions

Posted on by edbclient

May 20, 2014

Manama: More than 2,500 industry leaders from around the Middle East attended Petrotech 2014, the region’s leading downstream hydrocarbons exhibition and conference, currently being hosted for the third day in Bahrain. The event has been showcasing some of the petroleum industry’s largest corporations, and presentations from specialist speakers. As part of the event, the Economic Development Board (EDB) will host a gala dinner today at the Ritz-Carlton Hotel, Bahrain. The event closes tomorrow, Wednesday 21 May.
Panel discussions at Petrotech 2014 have thus far provided attendees with insights into the latest industry developments, the region’s mega projects and new technologies. HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive, Bahrain EDB, participated in a panel discussion on government incentives during which participants described the favorable business environment for international businesses looking to invest in the GCC. Taking part in the same session – which was moderated by Dominic Barton, Managing Director, McKinsey – were Dr. Meshaal Jaber Al-Ahmed Al-Sabah, Director General, Kuwait Direct Investment Promotion Authority; Dr. Mosleh Al-Otaibi, Chief Executive Officer, Royal Commission for Jubail and Yanbu in Jubail and Mr. Khaled Alohali, Vice Governor, SAGIA.
 Dr Jarmo Kotilaine, Chief Economist, EDB, moderated a panel discussion on new business and entrepreneurship in the petrochemicals sector, and panelists included Craig Moyer, Co-Chair Finance Services and Banking Venture Capital, Manatt, and Sami A. Khursani, Saudi Aramco Entrepreneurship Center, New Business Development, Saudi Aramco.
Both HE Kamal bin Ahmed and Dr Jarmo Kotilaine highlighted the important role Bahrain can play in developing the industry in the GCC – both through its expertise built up through a long heritage of oil and gas production and refining and through supporting industries, such as financing, logistics and research & development.
HE Kamal bin Ahmed said:
“We have been thrilled to host Petrotech 2014 and participate in discussions about how we unlock opportunities to develop the downstream sector in the GCC. Continued investment in petrochemicals will add value and drive growth across multiple sectors and benefit our entire region.
“As the first country in the GCC to discover oil Bahrain has a long heritage as a high quality producer. This coupled with Bahrain’s even longer history of investment in public education means we have the strength of human capital and an economy required to support businesses looking to access regional opportunities in the downstream sector.”
Dr Jarmo Kotilaine said:
“Some estimate that downstream oil and petrochemicals investment in the GCC will be close to $60bn over the next five years. This expansion will create a high level of demand for specialist talent and supporting industries.
“As a high quality and experienced producer and regional logistics hub, as well as having a welcoming business environment, highly skilled workforce and sophisticated regulation, Bahrain is ideally positioned to play an important role in ensuring fast growth in downstream industries is delivered across the GCC.”
The Petrotech exhibition also includes showcases from specialist businesses and some of the petroleum industries largest corporations, including the Bahrain Petroleum Company (BAPCO), Abu Dhabi National Oil Company (ADNOC), Kuwait Petroleum Corporation, Petro Rabigh, Sadara Chemical Company, Saudi Aramco and Yanbu Aramco Sinopec Refining Company (YASREF).
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Notes to editors:
Further information:
Noora Abul, Bahrain Economic Development Board
Tel: +973 17 589 903
Email: internationalmedia@bahrainedb.com
About The Bahrain Economic Development Board (EDB)
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall responsibility for attracting inward investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.
Key areas of focus include manufacturing, ICT, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com.

Prospects Bright For Islamic Capital Markets

Posted on by edbclient

May 19, 2014

Manama:  Prospects for international Islamic capital markets remain bright, according to the Chief Economist of the Economic Development Board, Dr. Jarmo Kotilaine.
Dr. Kotilaine discussed the prospects for the future of Islamic capital markets during a speech held at the World Islamic Funds and Capital Markets Conference in Bahrain. This year’s event marks the conference’s 10th anniversary and comes at a time of growing global interest in Islamic capital markets – including last year’s announcement from the UK government that it intends to issue a sovereign sukuk.
The speech assessed the global and regional economic outlook and the potential for a new wave of growth opportunities for Islamic investments.
Dr. Jarmo Kotilaine, Chief Economist of the EDB said: “Islamic finance is experiencing strong levels of growth worldwide, both as the industry itself matures, and as demand for financial services grows in markets with Muslim populations that are also experiencing rapid growth.
“Whether it is in bank credit, capital markets, or IPOs, regional economies are showing positive signs. Given the underlying growth fundamentals they possess, with young, fast-expanding populations and increasing demand for financial services, the prospects for the industry are strong.
“Growth in Bahrain estimated to be driven by a strong pick-up in the non-oil sector, thanks in large part to the initiation of a number of major infrastructure projects this year. With non-oil growth likely to exceed 4% this year, the finance sector, and the Islamic Finance industry within it, should see significant new growth opportunities, as investors look for means of funding projects”.
In 2001, Bahrain became the first country in the world to develop and implement regulations specific to the Islamic banking industry and presently, there are 24 Islamic banks in Bahrain, whose assets under management total $23.1 billion as of October 2013, up from $16.4 billion from June 2008, and 8 Islamic insurance companies (takaful and retakaful) operating in the Kingdom.
Bahrain is also host to a number of organisations dedicated to advancing Islamic finance policy and regulation, such as the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), the International Islamic Financial Market (IIFM), the General Council for Islamic Banks and Financial Institutions, the Islamic International Rating Agency (IIRA), the Thomson Reuters Global Islamic Finance Hub and Deloitte’s Islamic Finance Knowledge Center. Bahrain also holds many conferences on the Islamic Finance industry, and most recently played host to the World Islamic Banking Conference (WIBC), marking the event’s 20th anniversary. It is through the presence of organizations and conference such as these, that Bahrain has been able to become one the region’s knowledge hubs for the industry.
In 2001, the Central Bank’s predecessor, the Bahrain Monetary Agency, became the first central bank in the world to develop and issue sukuk and Bahrain has continued to play a leading role in the introduction of these products through regular short-term issuance, which are regularly oversubscribed. In 2011, the CBB raised $750 million through a seven-year sovereign sukuk.
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For further information please contact:
Economic Development Board
Tel: +973 17589966
Email: nc@bahrainedb.com

Economic Development Board Hosts Petrotech Gala Dinner

Posted on by edbclient

May 18, 2014​

Manama: Today Petrotech 2014, the Middle East’s leading petrochemicals exhibition and conference, opens in Bahrain. The event brings together more than 2,500 industry leaders from around the region to explore new technologies, business opportunities and partnerships. As part of the event, the Bahrain Economic Development Board (EDB) will be hosting a gala dinner on Tuesday, 20th May at the Ritz-Carlton Hotel, Bahrain.
Attendees at Petrotech, which is being held at the Bahrain International Exhibition and Convention Centre, will enjoy a 5,400 sqm showcase featuring specialist businesses and some of the petroleum industry’s largest corporations, including the Bahrain Petroleum Company (BAPCO), Abu Dhabi National Oil Company (ADNOC), Kuwait Petroleum Corporation, Petro Rabigh, Sadara Chemical Company, Saudi Aramco and Yanbu Aramco Sinopec Refining Company (YASREF).
A number of specialist speakers will also deliver presentations and participate in panel discussions that will provide unique insights into the latest industry developments, the region’s mega projects and new technologies. Speakers include:, Bahrain EDB; HE Shaikh Ahmed bin Mohammed Al Khalifa, Bahrain Minister of Finance, Minister in Charge of Oil and Gas Affairs, and Chairman of the National Oil & Gas Authority (NOGA);  HE Kamal bin Ahmed, Bahrain Minister of Transportation and Acting Chief Executive, Bahrain EDB; HRH Prince Faisal bin Turki bin Abdulaziz Al-Saud, Advisor to the Ministry of Petroleum and Mineral Resources, Saudi Arabia; HE Dr Muhammad Al Jasser, Minister of Economy and Planning, Saudi Arabia;  Khalid Al Falih, President and Chief Executive Officer, Saudi Aramco and Dr Jarmo Kotilaine, Chief Economist, Bahrain EDB.
HE Kamal bin Ahmed, said:
“Bahrain’s long heritage in the oil and gas industry, coupled with our investment in education and training, means that we have a deep well of human capital available for businesses investing in the region. Bahrain discovered oil in 1932, becoming the first Gulf state to successfully drill and exploit oil commercially, and with continued investment we believe Bahrain can play an important regional role in the sector.
“It is a great pleasure to welcome so many of the oil and petrochemical industry’s leaders to Bahrain for Petrotech 2014. Together we can chart a course for the industry that will deliver the greatest benefit to all people across our region, so that the industry that has been such an important part of our development to date can continue to enable us to thrive in the future.”
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Notes to editors:
Further information:
Noora Abul, Bahrain Economic Development Board
Tel: +973 17 589 903
Email: internationalmedia@bahrainedb.com
About The Bahrain Economic Development Board (EDB)
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall responsibility for attracting inward investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.
Key areas of focus include manufacturing, ICT, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.
For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit www.bahrain.com.

US Delegation Briefed about Support for Entrepreneurs and Investment Environment in the Kingdom during a visit to the EDB

Posted on by edbclient

May 13, 2014

Manama: An official delegation from the US Department of Commerce visited the Economic Development Board (EDB) headquarters today. The members met with EDB officials to discuss bilateral cooperation efforts between the two countries.

The delegation were briefed on Bahrain’s investment environment, as well as the competitive features of its diversified economy  and the Kingdom’s economic freedom, as well as explaining the Kingdom’s policy in flexibly addressing economic changes. The meeting also highlighted Bahrain’s achievements, which are manifested in its positive international rankings and the opportunities it offers. These have helped attract renowned companies and international investors to Bahrain.
These factors, as well as the Kingdom’s national, bilingual and skilled workforce, relative low living costs and high human development rates makes  it the natural gateway for investors looking to access the $1.5 trillion worth GCC market.
The meeting held between the delegation members and EDB officials also showcased various success stories of entrepreneurs in the Kingdom through a presentation given by Tenmou Chief Executive Officer Mr. Hasan Haider, who shed the light on the company’s experience in supporting and guiding entrepreneurs, which is the first of its kind in Bahrain.
Present at the meeting were Ms. Vivian Jamal, Executive Director of Business Development at the EDB; Mr. Don S. De Amicis, General Counsel and Vice President of Overseas Private Investment Corporation; Mr. Justin Antonipillai, Deputy General Counsel of US Department of Commerce and Mr. Hasan Haider, Chief Exectuive Officer of Tenmou.
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For Further information please contact:
Bahrain Economic Development Board
Tel: +973 17589966
Email: nc@bahrainedb.com

Preparations Underway for 10th Annual Spring of Culture

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May 12, 2014

Manama: Organisers of the Spring of Culture Festival 2014 announced preparations are underway for next year, which will look to celebrate the festival’s tenth anniversary since its launch in 2006.

This was announced with the conclusion of this year’s Spring of Culture activities, which succeeded in providing an array of educational, cultural and artistic performances attracting a wide and diverse audience. The festival also included social community programmes and educational workshops to benefit the public.
Commenting on the preparations, H.E. Shaikha Mai bint Mohammed Al Khalifa, Minister of Culture, revealed next year’s festival will be under the title “Our Heritage is Our treasure”, and will showcase world heritage through international groups that will visit the Kingdom, bringing with them their local heritage and culture. She also stated Bahrain’s heritage will take centre stage in the festival’s activities, to celebrate the 10th anniversary of the Spring of Culture and provide a unique experience to the audience.
Speaking on the festival, H.E. Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Economic Development Board (EDB), said: “The Spring of Culture Festival has achieved its set goals, and has managed to attract more tourists from the region as well as reflect Bahrain’s openness and cultural scene. We are proud to be supporters of this festival since its launch, and will continue to do so, to benefit the national economy, and enhance the Kingdom’s continuous cultural contribution through our partnership with the festival organisers.”
This year’s most popular performances that witnessed huge attendance was the concert of legend guitarist Eric Clapton, Mohammed Abdo, international singer Gloria Gaynor, Liaoning Ballet performance which was held in line with the Chinese Cultural Week, Opera performance by international legend José Carreras and renowned musician Michel Fadel. This is along with events which attracted families and children such as the China National Acrobatic Troupe and The Very Hungry Caterpillar and other Eric Carle Favourites.
The festival has also brought social community programmes and educational workshops, free of charge, which organisers estimated more than 300 individuals to have benefited from. They were conducted by performers taking part in the festival, as well as renowned experts, in line with the Spring of Culture Talents Programme, which sought to develop young Bahraini talents.
The Spring of Culture 2014 was organised by the Ministry of Culture in cooperation with the Economic Development Board, Shaikh Ebrahim bin Mohammed Al Khalifa Centre for Culture and Research, Al Bareh Art Gallery, Al Riwaq Art Space, and La Fontaine Centre.
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For Further information please contact:
The Economic Development Board
Tel: +973 17589966
Email: nc@bahrainedb.com

EDB Releases Bahrain Economic Quarterly

Posted on by edbclient

May 11, 2014

Manama: The Economic Development Board (EDB) recently said that the Kingdom’s non-oil sector is well positioned for growth in 2014 following a sharp rebound in the oil sector in 2013.

The first Bahrain Economic Quarterly (BEQ) for 2014 also highlights expectations of further growth in key sectors such as infrastructure, with predictions of increasing momentum in the coming months. The forecasted growth will have a marked positive impact on contractors, confidence, and increased bank credit growth.
The report identifies three factors contributing to the non-oil sector growth and comeback, including the delay in incremental government spending. As a result of this, the annual growth rate of the government services sector in the national accounts slowed down sharply last year. However, government expenditure for this year is expected to be more robust compared to last year.
The second reason behind the non-oil sector growth is the launch of a number of infrastructure projects, worth $4.43 billion according to recent reports by Ministry of Finance. A number of infrastructure projects which were approved by the Gulf Development Fund are due to be launched in the coming months.  Third, the banking sector’s liquidity and low loan-to-deposit ratios, have also led to the acceleration of project development and improved confidence levels.
According to the latest official estimates, which the EDB reviews in a separate update than the BEQ, the real GDP growth rate in 2013 reached 5.3%, supported by the robust 15.3% expansion in the hydrocarbons sector, and growth of just over 3% in non-oil sectors. The EDB expects non-oil growth to accelerate to more than 4% this year and even as the oil sector is likely to remain more or less flat, headline GDP growth should come in at 3.5-4%. The EDB’s current estimate is 3.7%.
The hydrocarbons sector is expected to experience a year of stability in 2014 as the main offshore Abu Sa’afah oil field looks likely to remain at full capacity. As a result of various pilot projects being evaluated, stable production from the onshore Bahrain field is likely to result in a modest contribution from the hydrocarbons sector to GDP growth this year.
According to the BEQ, the EDB has attracted approximately $114 million of foreign investment in 2013 from North America, Europe and Asia, 12% more than in 2012. In 2013 alone 35 foreign companies established business in Bahrain, creating over 800 jobs in financial services, logistics, manufacturing, healthcare, technology and ICT sectors.
The report also highlighted the positive growth of the labour market in Bahrain, where private sector employment went up by 5.2% in Q3 of 2013, reflecting a recovering economy in labour driven sectors and an improvement in labour market conditions. At the same time, official rates for unemployment have decreased from 4.5% in November, to 4.3% in December.
On a global perspective, and in spite of uncertainty on the current economic scene, developed economies seem to have a healthy outlook, while uncertainty clouds the future of emerging economies. In terms of the economic situation in the Gulf region, the BEQ expects the non-oil sectors to make a positive comeback in the region and lead the forecasted economic growth, paired with lower, government controlled hydrocarbons sector contribution to the overall growth. According to the report, the Kingdom of Bahrain can take advantage of the positive economic outlook in the region by boosting investor confidence levels, thus boosting growth in the private sector.
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Further information please contact:
Economic Development Board
Tel: +973 17 589 966
Email: NC@BahrainEDB.com
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