bahrain annual review 2008

Bahrain Economic Development BoardOperating Review 2008

Expanding Horizons

His Highness Shaikh Khalifa bin Salman Al Khalifa

Prime Minister

His Majesty King Hamad bin Isa Al Khalifa

King of Bahrain

His Highness Shaikh Salman bin Hamad Al Khalifa

Crown PrinceChairman of the Economic Development Board

Bahrain Economic Development Board | Operating Review 2008 1

EDB’s VIsION AND MIssION

Bahrain Economic Development Board | Operating Review 2008 2 | 3

Our mission is to grow and diversify Bahrain’s economy by developing a strategy that supports the advancement of a modern and liberalised business environment, encourages inward investment and enables us to compete in the global marketplace.

We are dedicated to raising living standards by creating greater opportunities for our citizens and to make Bahrain the Gulf’s most welcoming, business friendly location. We will accomplish these goals by working in partnership with the public and private sectors, and by being passionate, professional and innovative in all that we do.

CONtENts

7 Chairman’s statement 8 Chief Executive’s statement 11 Board of Directors 2008 12 Our team 14 StAte Of tHe ecOnOMy 20 enHAncIng tHe BuSIneSS envIROnMent

22 Economic Vision 2030 and the National Economic strategy

24 Education: Bahrain’s Future 26 spotlight: Bahrain teachers College 27 spotlight: Bahrain Polytechnic 28 spotlight: Quality Assurance Authority 29 spotlight: school Improvement Programme

30 Legal Framework and Governance 32 spotlight: Bahrain Ranking Project33 spotlight: spring of Culture 34 spotlight: taxi Regulation 35 spotlight: Privatisation

36 InveStMent PROMOtIOn And glOBAl MARKetIng

38 Global Marketing & Communications 41 spotlight: Business Friendly Bahrain 41 spotlight: Online Engagement 42 spotlight: New Collateral 42 spotlight: World Economic Forum 43 spotlight: Formula One 2008 43 spotlight: singapore and Japan Road show

44 National Communications 46 spotlight: Launch of the Economic Vision 203047 spotlight: Communicators in Government 47 spotlight: Publications

48 Attracting Investment to Bahrain 50 spotlight: Bahrain International Business Orientation Week 50 spotlight: Facilitation services 51 spotlight: sulzer 51 spotlight: Manpower 52 spotlight: third Wave 52 spotlight: BFX 53 spotlight: CBRE 54 spotlight: Festo 55 spotlight: MENA

56 WORld clASS ORgAnISAtIOn

58 tHe WAy fORWARd


this has been a momentous year for the organisation, and for the Kingdom of Bahrain. His Majesty King Hamad bin Isa Al Khalifa launched Bahrain’s Economic Vision 2030 in October of this year. this was one of our most ambitious activities to date and a culmination of hard work by the Economic Development Board in cooperation with the Government, civil society and the private sector. Now that it is launched and in the public realm, the work gets underway, as we strive to make all of the aims and objectives laid out in the Vision a reality.

Our goal is clear – a better life for every Bahraini. this is the single overriding focus for all of the activity we undertake. But actions and responsibility are not ours to carry alone. With the National Economic strategy, which will begin in 2009, we are aligning all ministerial goals; creating a united force working together for the good of the nation. In addition, we are communicating to our people and our businesses the ways in which they too can play their part, and contribute to our growth, economic prosperity and future security.

As we move into 2009, we are looking forward to implementing many of the strategies that we have been working on since our inception as an organisation. We are now witnessing people and businesses beginning to reap the rewards of our work, they are experiencing the tangible and positive changes resulting from our policy to invest in people.

Of course, our work is global as well as local, and in 2008, we communicated our strengths and talents as a nation in earnest through the Business Friendly Bahrain campaign. In reaching out to investors across the globe – with a clear target of those industries that will provide the best opportunities for Bahrain and Bahrainis – our work had determining influence on key businesses, who chose to locate or relocate in the Kingdom. We believe that this is still only the start, as we look to future opportunities.

that said; we move into the future with our eyes wide open, with a clear understanding of the constraints imposed by the current global economic climate, tempered by an equal understanding of the cyclic nature of economic patterns. We will work together with our partners in government and industry to ensure that we remain focused on our long term goals as set out in the Bahrain’s Economic Vision 2030, even if we are forced to make short term adjustments to accommodate current conditions.

It is an honour to be at the helm of the Economic Development Board, to be entrusted with the stewardship of our nation’s economic wellbeing. As an organisation we remain ambitious and optimistic, firmly focused on our role to strive for the betterment and advancement of our people, services and industries. We stand united, and will work together to deliver on our commitment of building a better life for every Bahraini.

It is both our duty, and our privilege.

shaikh salman bin Hamad Al Khalifa

CHAIRMAN’s stAtEMENt


this has been a year of preparing the ground and looking forward at the Economic Development Board. the Economic Vision 2030 was finalized and launched by His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain following extensive Kingdom-wide consultation. this is a significant landmark for Bahrain and especially for the Economic Development Board, and marks a pivotal stage in our evolution. Now, we move into the next phase, having gained consensus and identified a clear aim for all in Government – to build a better life for every Bahraini – and clarified the ways in which we will achieve this through the development and implementation of the National Economic strategy.

Our role of accelerating positive change for the country by bringing greater cohesion to the work of government agencies has been exemplified during the refinement and launch of Vision 2030. We have been able to forge new relationships, strengthen communications channels and streamline approaches to the planning and implementation of policies. the result is a unified government that will see enhanced public services, delivered with increased transparency and offering greater value for the people.

this collective drive has also enabled us to further the prospects of our young people and future generations. thanks to a programme of change and enhancement to the education system, our students are able to develop new and, most importantly, career-relevant skills. By ensuring that our educational models are more closely aligned with the labour market, we are able to strengthen the economy through increased productivity and provide investors with even more reasons to choose Bahrain as their regional business base. Critically, the changes to our education systems at primary, secondary and tertiary level offer teachers, parents and students greater access to information, and ensure they can make informed choices about decisions that will have a lasting impact on lives and careers.

We have also worked to streamline and unify not just the work of Government, but also the way we communicate collectively; sharing what we do and why we do it with all of our stakeholders. As a result we have created the National Communications Centre and established a countrywide network of public sector communications professionals to ensure that we can bring clarity to our actions and supporting rationale.

CHIEF EXECutIVE’s stAtEMENt

Internationally we have reached out to investors and industry with a clarion call. Business Friendly Bahrain is our first international integrated advertising and marketing campaign running across tV, print media and more. the result has been a raised profile and increased awareness of the reasons why we should be front-of-mind for anyone thinking about doing business in the Gulf – particularly for those in the target sectors which will bring the best value for our people in terms of well paid and secure employment opportunities.

But we have not just spent our energies on attracting new investors. Our role is also to help those companies who have already made a commitment to the Kingdom and established a base with us – whether local, regional or international. We want to help these businesses grow and create more opportunities for employment, enhance our capacity for innovation, and help to forge an entrepreneurial spirit for the nation. Given the current global economic climate, there has never been a greater need for this level of support.

Our organisation also believes we must strive to lead from the front, and that is why we make sure that our finance and administration services serve as models which others can follow – exercising international best practice, accountability and transparency. In addition, we strive for maximum productivity across our team at every level, creating a work environment that helps to develop new leaders for Bahrain and allows us to attract and retain the best and brightest talent.

the result is an organisation that works alongside government to build a better Bahrain for every Bahraini. We strive for the very best for our country, for our people and businesses. For all of our futures. It is an organisation I am proud to be part of.

Mohammed bin Essa Al Khalifa


BOARD OF DIRECtORs 2008

cHAIRMAnHis Highness shaikh salman bin Hamad Al KhalifaCrown Prince

MeMBeRS H.E. sh. Mohammed bin Mubarak Al KhalifaDeputy Prime Minister

H.H. sh. Ali bin Khalifa Al KhalifaDeputy Prime Minister

H.H. sh. Abdulla bin Hamad Al KhalifaGovernor of the southern District

H.H. sh. Nasser bin Hamad Al KhalifaChairman of the Royal Charity Organisation

H.E. Jawad bin salem Al ArrayedDeputy Prime Minister

H.E. sh. Khalid bin Abdulla Al KhalifaMinister of Prime Minister’s Court

H.E. Dr. Hassan bin Abdulla FakhrooMinister of Industry & Commerce

H.E. Fahmi bin Ali Al JawoderMinister of Works

H.E. sh. Ebrahim bin Khalifa Al KhalifaMinister of Housing

H.E. sh. Ahmed bin Mohammed Al KhalifaMinister of Finance

H.E. Dr. Majed bin Ali Al NuaimiMinister of Education

H.E. Dr. Majeed bin Mohsen Al AlawiMinister of Labour

H.E. Dr. Abdul Hussain bin Ali MirzaMinister of Oil & Gas Affairs

H.E. Dr. Fatima bint Mohammed Al BalooshiMinister of social Development

H.E. Rasheed Mohammed Al MerajGovernor, Central Bank of Bahrain

H.E. sh. Ahmed bin Attiyatallah Al KhalifaMinister of Cabinet Affairs

H.E. sh. Khalid bin Ali Al KhalifaMinister of Justice

H.E. Dr. Faisal bin Yaqoob Al HamarMinister of Health

H.E. Dr. Juma Al KaabiMinister of Municipality & Agriculture

H.E. sh. Mai bint Mohammed Al KhalifaMinister of Culture & Information

H.E. Dr. Essam Abdulla FakhroChairman, Bahrain Chamberof Commerce & Industry

Mr. Jawad Habib Jawadsenior Partner, Jawad Habib Group

Mr. sameer Abdulla NassChief Executive, Nass Group

Mr. Atif Ahmed Abdul MalekChief Executive, Arcapita Bank

Ms. Elham Abdulla Hassansenior Partner, PricewaterhouseCoopers

Mr. talal Ali Al ZainChief Executive Officer,Mumtalakat Holding Company

Mr. Adel Hussain Al MaskatiManaging Director, Al Maskati Group

Mr. Jalal Ahmed Al AaliChief Executive, Ahmed Mansoor Al Aali Co.

Mr. tariq Jalil Al saffarsenior Vice President & Managing Director, “MCN”


OuR tEAM

“By being passionate, professional and innovative”

stAtE OF tHE ECONOMY

Economic Review

As part of its efforts to build a modern economy, the Government of Bahrain and the Economic Development Board continued to safeguard Bahrain’s economic policy of being the freest country in the Middle East, sustaining its growth over the course of the year.

Bahrain’s strong economic policy has helped Bahrain reduce the impact of the global financial crisis – especially in comparison to its international and regional trading partners. With many economies experiencing their worst recession in 80 years, and with oil prices showing steady declines since mid 2008 when they reached record highs, Bahrain is still set to continue on an upward trajectory.

According to the Central Informatics Organisation (CIO), the Kingdom’s Gross Domestic Product (GDP) in 2008 continued to rise, up by 6.3 per cent over the year*, following annual increases averaging more than 7 per cent every year from 2002 onwards.

Bahrain’s early decision to diversify its economy away from oil and gas has been instrumental in securing continued growth, especially against a background of falling oil prices and reduced outputs. the financial services sector continues to act as a lynchpin for the economy. the sector accounted for 20.5 per cent of overall GDP**, making it an important contributor to the economy. the core driver of this is the strength of corporate governance and levels of transparency across the sector as the Central Bank of Bahrain maintains its position as the most respected and trusted regulator in the MENA region. With a heritage of 40 years as the financial capital of the region, the CBB’s industry-leading regulation – and in particular of the Islamic sector – has been instrumental in further enhancing the Kingdom’s credentials with the industry and with investors, which in turn maintain market integrity and stability.

As an additional force in enhancing market reputation and stability, Bahrain’s Mumtalakat Holding Company is now well established and has one of the highest scores in the nine Gulf companies covered by the sovereign Wealth Fund Institute’s quarterly Linaburg-Maduell transparency Index. Mumtalakat is bringing models of best practice to the management of a portfolio of national and international companies with increased transparency and accountability, offering greater value to the public.


GDP GrowthSource: CIO

GD

P B

D m

illio

ns

9283Bahrain Nationals

4639Foreign Nationals

Financial Sector Workforce2008

* All GDP data from Bahrain’s Central Informatics Organisation and Economist Intelligence unit

** CBB Figures

Economic Review

since 2005, industry, particularly the aluminum and downstream industries, has become an increasingly important contributor to GDP. According to the Economist Intelligence unit, Industrial companies and products now account for 63.2 per cent of GDP, up from 42.9 per cent in 2005. this rise has taken place against the backdrop of a growing services sector, which helps to illustrate the scale of expansion across the industrial sectors. Alba, the aluminum manufacturer, and its sister companies have played a key role in this success.

the economy is further supported by significant levels of foreign direct investment (FDI). According to the uNCtAD World Investment Report, the authoritative source of FDI inflows and outflows globally, its 2008 report indicated Bahrain’s continued attraction for investment. Although levels of both inflow and outflow were slightly down on 2007’s report – which is to be expected given overall market dynamics – inward FDI as a percentage of GDP was far in excess of any other GCC state and well above averages for developing economies, the West Asia region or the world as a whole. FDI as a percentage of GDP was 65.9 per cent for inflows, 39.3 per cent for outflows, against global averages of 27.9 per cent and 28.9 per cent respectively.

Consumer price inflation - which records increases in the cost of goods and services used by the population, including food and utilities - saw average increases of around 6 per cent in 2008. this increase was well below average price rises for the MENA region as a whole, which stood at 14 per cent.

2008 was a very good year for job creation. A total of 568,307*** people were in employment at the end of 2008 - an increase of 14.8 per cent on 2007 figures. the numbers of Bahrainis in employment also rose, up 7.7 per cent on the previous 12 months to 140,096. there was a complementary reduction in the number of jobseekers registered with the Ministry of Labour – down 14 per cent to 2,555 people.

Even taking into account slight increases in prices, those in employment were better off in 2008 than in previous years, with average wage increases recorded for both public and private sectors across Bahraini and non-Bahraini workforces. Overall, rises averaged 3.5 per cent, with average wages for Bahrainis increasing by 4.8 per cent to an average of BD 627 per month. Average monthly wages for Bahrainis working in the public sector rose to BD 898 in Q4 2008, up BD 101 on the same period in 2007.

Private sector wages once again remained significantly lower than the public sector, indicating the continued need to boost employment in those priority sectors identified by the Economic Development Board. However, private sector incomes also showed increases over the year with average monthly incomes for Bahraini workers topping BD 500 for the first time ever during the first three quarters, and hitting a high of BD 555 in Q3. Although this figure fell at year end to BD 489, this still showed a 2 per cent increase on the same period in 2007.

Making improvements to the labour market across a number of levels is of critical importance to a stable and successful economy. In 2008, the Government worked to roll-out a number of programmes through myriad agencies, all addressing the core issue of making the Bahraini employee more attractive in the job market. In 2008, the Ministry of Labour, tamkeen, and the Labour Market Regulatory Authority worked alongside Government partners including the Economic Development Board to increase productivity, support growing businesses and entrepreneurs, build core skills for Bahraini nationals and deliver, and provide a safety net and training for those who find themselves unemployed.

*** All Labour market data from the Labour Market Regulatory Authority


lOOKIng AHeAd tO 2009Although the economy is not expected to sustain the levels of growth of 2008 over the coming 12 months, the country still remains well on track to weather the global storm. Having had the foresight to diversify its economy, Bahrain is not overly exposed in any one area, which offers increased stability and security. As a financial centre, the hit taken by the financial services sector globally is making some impact, but with the Central Bank of Bahrain recognised as the regional leader in terms of transparency and regulation, this stands the Kingdom in good stead now and over the longer term, once global markets and the sector in particular rebound. A slowing real estate market regionally is also likely to have some negative economic impact in the short term, but the removal of speculators from the market and increased sector regulation will ensure greater access to homes for end-users rather than investors, creating a more stable and accessible property market in future.

to ensure that Bahrain maintains its stable and strong economy, the Government is investing in people, industry and infrastructure at a responsible level. the 2009 and 2010 budgets take into account lower oil prices, basing associated revenues on a price of us$ 40 per barrel. Expenditure will exceed revenues over both years, helping to maintain healthy market momentum, fund education and employment initiatives, and provide healthcare, housing and infrastructure in response to the needs of a growing population. the Kingdom will now benefit from prudence shown when oil prices were higher and revenues exceeded expenditure, especially given a global backdrop where budget deficits are standard across the vast majority of both developed and developing economies. Also, in 2009, prices are expected to remain stable with inflation in Bahrain set to fall to around one per cent in 2009, in contrast to rises of around 8 per cent regionally.

As part of a multifaceted programme to increase employment opportunities for Bahrainis in the private sector and to foster a culture of entrepreneurialism, the Bahrain Development Bank enjoyed the best year in its 16-year history, achieving record loan approvals while keeping administrative costs virtually unchanged. total project approvals, including projects by tamkeen, jumped by 76% to 848 from 482 in the previous year with total loan approvals amount of BD 41.5 million recording a 25.5% increase over 2007. the numbers of new jobs created more than doubled to reach 4,948, breaking the previous year’s record of 2,468 jobs. significantly, the projects’ cost supported for this year totaled BD 55 million as compared to BD 37.7 million, reflecting strong dynamism and effectiveness.

Bahrain’s increase in labour productivity was rated by the Conference Board, an independent, not-for-profit us organisation, as the highest in the Gulf since 2000. Its Growing Beyond Oil report concluded that Bahrain’s labour productivity rate was 20 per cent higher than that of Oman, its nearest competitor, and more than five times above the GCC average.

Bahrain also continued to perform well across a number of other reports and rankings produced by independent third parties, including the Heritage Foundation’s Index of Economic Freedom, where Bahrain once again retained the highest ranking among MENA nations. the Kingdom went up three rankings in the index from 19th to 16th freest economy globally. this success is a result of the continued drive to create the most business friendly economic environment.

the Kingdom made progress in the Human Development Index 2008, published by the united Nations Development Programme (uNDP). Bahrain now stands at number 32 in the rankings among 179 international economies, moving up from 41 among 177 in 2007, and recording the greatest progress among GCC nations. the index measures three dimensions of human development - living a long and healthy life, measured by life expectancy; education, measured by adult literacy and enrolment at primary, secondary and tertiary level; and having a decent standard of living, measured by purchasing power parity and income.

Economic Review

Estimated total employment by citizenshipSource: LMRA

Levels of international trade are also subject to fluctuation according to the global situation – and with reduced demand for goods and services internationally, it is important for Bahrain to maintain strong links with key trade partners and look to build on those sectors where the country can add value and attract business.

A determining factor in the continued prosperity of the nation is the Economic Vision 2030 and the implementation of the National Economic Strategy. This clear framework for growth, with commitment at the highest levels of government and industry to the future success of the Kingdom and the aim of building a better life for every Bahraini, will help to sustain economic growth and promote a balanced and healthy economy. It is expected that 2009 will be a year of challenges, but the foresight of Government and the ongoing programmes of reforms and enhancements across all facets of public service put the Kingdom in an enviable global position. The country enters the year with growth still forecasted and clear policy measures for supporting the economy, and protecting employment and industry during this period of global change.

ENHANCING tHE BusINEss ENVIRONMENt

Section 1 | Enhancing the Business Environment

the Economic Development Board has been working with partners across the government to develop strategies that will help the Kingdom to prosper, bringing economic growth and creating better opportunities for Bahrainis.

to encourage investment and to strengthen the economy, every aspect of the country’s structure needs to be considered – its government, its infrastructure and institutions, the legislature and even its social fabric.


In 2008, and as a result of years of consultations and work with partners across the public and private sectors, the Bahrain Economic Vision 2030 was finalised and launched.

the Economic Vision 2030 defines Bahrain’s aspirations for the future. It is forward looking and places Bahrain’s people right at the heart of the Kingdom’s development. It recognises above all else that the aim of economic growth is an increase in prosperity and opportunity for each and every individual.

Vision 2030 has been developed in close consultation with senior government officials, civil society leaders, and representatives from the private sector, as well as national, regional and international economic experts.

to turn the Economic Vision 2030 into reality, the Economic Development Board – working in close cooperation with partners across government – developed the National Economic strategy 2009-2014. A clear course of action, it translates the Economic Vision 2030’s aspirations into strategic initiatives running over the course of six years, each designed to build a better life for every Bahraini.

the Economic Vision 2030 concentrates on three areas – defining the direction for government, society and the economy. Our society and government will embrace the principles of sustainability, competitiveness and fairness to ensure that every Bahraini has the means to live a secure and fulfilling life and reach their full potential.

together, the overall strategy identifies the most important initiatives for the country and sets out what should be implemented over the next six years, and how and when these initiatives should take place. Each of Bahrain’s ministries and government organisations has a defined role to play in the strategy’s implementation and in achieving the aims of Vision 2030.

ECONOMIC VIsION 2030 AND tHE NAtIONAL ECONOMIC stRAtEGY

OBjectIveSVision 2030 sets the strategic direction for the Kingdom, around which each ministry and government organisation can then align its goals and policies. It is a blueprint to ensure that Bahrain benefits from the Government’s long-term focus on economic growth and that there are tangible improvements in the standard of living for all citizens.

the document outlines clear aspirations for the future of Bahrain, and engages and motivates each stakeholder in the nation’s success – starting with the Bahraini public. In addition, Vision 2030 forms the basis for all other economic and governmental planning, including the National Economic strategy, which sets out detailed objectives over a six-year period.

there are three guiding principles for the National Economic strategy:

• Tostrengthentheprivatesectorandchangethebalancebetween private and public sector employment

• Toaimfordiversificationandinnovationinasustainable,knowledge-based economy

• Toensureappropriateskill-buildingtomatchtheshiftinvalue creation

It aims to show how the work of all government organisations is interlinked; how the success of the nation as a whole is dependent on all parties working together, and how each must take responsibility for their part in the implementation of initiatives.

the actions and measures needed to achieve each initiative are clearly outlined and assigned to a department or a ministry for example, or to a broader group of government agencies working collectively. In addition, the strategy sets clear and measurable targets, which will be used to determine its success.

As the next step in this process, each of the ministries and public sector agencies will translate the initiatives included in the National Economic strategy into detailed implementation plans to be rolled out independently, each playing a critical role as part of a greater whole that together will deliver on the promise of a better life for every Bahraini.

MIleStOneS• InOctober2008,HisMajestytheKinglaunchedtheEconomic

Vision for Bahrain 2030. throughout 2008, the Economic Development Board worked with strategic partners in the ministries to develop the National Economic strategy.


EDuCAtION | BAHRAIN’s FutuRE


Education was identified as one of the priority areas for reform in November 2005 at a workshop held under the leadership of His Highness the Crown Prince, and it has been one of the core areas of focus for Government and for the Economic Development Board ever since.

An inclusive cross-agency initiative was created in 2006, with a view to improving the standards of education at every level to equip the nation’s youth with the skills and capacities they need to succeed both in life and at work. spearheaded by H.E. shaikh Mohammed bin Mubarak Al Khalifa, the Deputy Prime Minister, the National Education Reform Initiatives were supported by the Economic Development Board, the Ministry of Education, the Ministry of Labour and other key partners from both the education system and the private sector.

In 2008, the Kingdom’s education reforms moved from their successful planning and development stages into operational mode, with many elements of the reforms beginning operations with the start of the academic year in september 2008. this implementation of the first round of education reform initiatives has resulted in some remarkable achievements across the entire education system. As a result, Bahrain’s education system has seen widespread change and improvement for students and parents, teachers and trainers at primary, secondary and tertiary levels. this is due to the combined efforts, input and assistance from a wide range of sector partners from across the world, and the sustained attention and commitment from the highest levels of government.


sPOtLIGHt | BAHRAIN tEACHERs COLLEGE

Establishment of the Bahrain teachers College (BtC) was authorized in March of 2008 as an integral part of the national educational reforms. this followed the expert opinion that the existing teacher training facilities were not meeting Bahrain’s needs. Its role is to ensure that the standards of teaching in Bahrain are raised to that of leading nations globally. the college, which received its first intake of 200 students in september 2008, was officially opened by H.H. shaikh salman bin Hamad Al Khalifa, Crown Prince and Chairman of the Economic Development Board, in November 2008. It was developed with the support of the National Institute of Education (NIE) in singapore, widely recognized as one of the world’s leading teacher education institutions. NIE will continue to support the new college during its first two years’ operations.

the college has a vital role to play in ensuring that the best and brightest graduates are encouraged to enter the teaching profession. the skills they acquire at college will ensure that their standards of teaching reflect the latest advances in educational methods, and will help to inspire future students to attain success and enrichment through learning.

the BtC is a unique college within the university of Bahrain. Representatives of the university of Bahrain, the Ministry of Education, the Economic Development Board and the community make up its multi-stakeholder governing board. teaching at the College is formally bilingual, in recognition of the importance of fluency in Arabic and English for achieving excellence in the teaching profession in Bahrain.

By september 2009, the college will be ready to increase its student intake by 50 per cent to 300 in the next academic year for both the Bachelors in Education (BEd) and the Post Graduate Diploma in Education (PGDE) courses.


sPOtLIGHt | BAHRAIN POLYtECHNIC

the Bahrain Polytechnic was officially established in July 2008, but by this point a significant amount of work had already been undertaken to get the campus ready and to recruit the first intake of students.

During April and May 2008, polytechnic representatives visited all public secondary schools as part of a promotion and recruitment drive. In June 2008, H.E. shaikh Mohammed bin Mubarak Al Khalifa, Deputy Prime Minister, Chairman of the Education and training Reform Committee, toured the campus to inspect the facilities and meet the faculty.

Bahrain Polytechnic admitted 240 students during its first semester in september 2008. the intake is now enrolled in a wide range of technical and vocational courses including Business, Engineering technology, transport Freight and Logistics, and Office Management. the official opening of the Polytechnic took place in November 2008 with a visit from His Highness the Crown Prince.

A further 240 students have received offers of places for the second semester of programmes which will begin in February 2009 and the Polytechnic plans to grow to cater for 5,000 students by 2013.


Established in 2008 with a remit to review and publicly report on the quality of education and training institutions in Bahrain, the Quality Assurance Authority (QAA) is now firmly focused on driving the improvement process and raising standards of education and training in Bahrain.

In 2008, the QAA became responsible for conducting regular reviews of schools and vocational training providers, and for undertaking quality reviews of universities, and running school examinations. Four distinct units working within the QAA were set up during the year to carry out these functions:

ScHOOl RevIeW unItthe school Review unit, (sRu) helps schools to improve by providing an expert and impartial evaluation of a school’s standards and achievements, based on personal development of students, the quality of teaching and the school’s leadership and management.

In september 2008, the sRu began the first full cycle of reviews of all 204 public schools and completed reviews of 20 schools from all stages and governorates in the Kingdom of Bahrain. A further 52 schools will be reviewed during the remainder of the academic year.

vOcAtIOnAl RevIeW unIt the Vocational Review unit (VRu) aims to develop accountability, raise standards and promote improvement amongst Bahrain’s training providers. It evaluates and reports on the quality of vocational training provision and gives providers the tools they need to improve.

In June 2008, the VRu completed a series of 15 pilot reviews which it began in 2007, and in september work started on the first formal reviews, which will continue through to December 2010. During this period, each of the 60 education providers licensed by the Ministry of Labour will be reviewed, as will more than 30 post-secondary education providers licensed by the Ministry of Education, and four technical and commercial schools which the VRu reviews jointly with the help of another QAA unit, the schools Review unit.

sPOtLIGHt | QuALItY AssuRANCE AutHORItY

HIgHeR educAtIOn RevIeW unItthe primary function of the Higher Education Review unit (HERu) is to assure the quality of higher education in Bahrain by reviewing educational institutions and their programmes. the unit, along with a panel of peer reviewers, assesses the effectiveness of any checks and balances put in place by institutions to ensure quality and consistency of standards.

During the course of 2008, the unit made significant progress, including finalising two pilot university reviews which began in March 2007. In september 2008, at the beginning of the academic year, formal institutional reviews were started and HERu is now well on track to reaching its target of conducting full reviews of all Bahrain’s universities by the end of 2010.

nAtIOnAl exAMInAtIOnS unItthe National Examinations unit (NEu) is introducing new examinations for Bahrain’s schools and will provide independent feedback on strengths in teaching and learning. the new exams will cover four core subjects: Maths, science, Arabic, and English. they will begin in 2009 for grades 3 and 6, with grade 9 being added in 2010. Every student in every public school will sit the same examinations, which means the unit will be reporting on 250,000 individual results every year by 2010, with detailed reports of results being made available to parents, teachers, students and other interested parties.

In 2008, the unit made significant progress in ensuring these goals were met. the November 2008 pilot exams were held successfully and pre-testing for grades 3 and 6 ran concurrently with the pilot.


sPOtLIGHt | sCHOOL IMPROVEMENt PROGRAMME

With support from the Economic Development Board, the Ministry of Education and ten schools from all five governorates in Bahrain are working together to pilot the school Improvement Programme. this began with the start of the academic year in september 2008. Working teams have been assigned to focus on four key initiatives: teaching for learning, the excellence schools initiative, leadership for outcomes, and partnership for performance. these teams are now training and mentoring schools in behaviour management, lesson observation, coaching, self evaluation, and strategic planning; with key performance indicators being put in place to judge each school’s performance. the programme will be rolled out to all public schools in phases over the next two years.

secondary vocational initiative: One of the main drivers for the programme is ensuring a seamless transition for students from school life to work life. A project called ‘learning for work’ is focused on improving the quality of education in Bahrain’s commercial and technical schools. It is being developed and rolled out with the help of a global partner organisation, the

Department of Education from Victoria, Australia. the initiative is currently active in three pilot schools, where an education and training framework is being created to help all students to improve their job skills and career prospects and give them the tools they need to become more productive employees when they enter the labour market.

teachers Initiative: the programme also includes an initiative focused on the development of teachers. During 2008 the Ministry of Education, advised by international partner National Institute of Education in singapore, developed the professional development programme and the educational leadership programme. the professional development programme will train 1,500 teachers in 2009, and training for educational leadership will be given to 50 exceptional teachers. A new performance management system was also developed during 2008, with the pilot ready for implementation in 2009.


transparent and business friendly legislation is central to Bahrain’s current success. As global and local business environments evolve, ensuring that the Kingdom’s legislation responds and adapts to meet these changes is essential to securing future prosperity.

In addition to providing advisory and legal support across the organisation, the Legal Department plays a central role in monitoring the global legislative environment, working with other government agencies to amend and update existing legislation or develop new laws. this ensures that the Kingdom’s legislative system reflects international standards and global best practices, and that any obstacles to encouraging inward investments are removed.

OBjectIveSWith the objective of creating the best possible legislative environment for growing business and encouraging inward investment, the Economic Development Board works to draft and develop new laws and provide advice on draft laws referred by government ministries and authorities, the shura Council and the Council of Representatives.

the Economic Development Board provides legal advice and counsel to a number of partners and agencies across Bahrain including the telecommunications Regulatory Authority (tRA), the Labour Market Regulatory Authority (LMRA), tamkeen, the Ministry of Industry and Commerce, the Ministry of Information, and the Ministry of Health.

In addition, work is undertaken to prepare and draw up various contracts, tender documents and memoranda of understanding between the Economic Development Board and other parties, as well as work on all legalities related to the organisation’s initiatives across education, healthcare services and the real estate sector.

LEGAL FRAMEWORK AND GOVERNANCE

MIleStOneS AcHIeved• In2008,thedraftDataProtectionlawwasapproved

internally and referred to the Directorate of Legal Affairs to review and approve the legislative drafting aspect of the document. the law will safeguard personal data consistent with the standard mandated by the European union for its member states.

• AdraftlawtocombatCyberCrimesandpromotegrowthofthe information and communications technology sector in the Kingdom was referred to the Council of Ministers.

• TheCompetitiondraftlawwaspreparedinbothArabicandEnglish. the Legal Department has consulted relevant partners in the public and private sectors to know their comments and observations. the necessary changes have been made to the draft law in view of the observations submitted by different competent authorities in order to refer it to the EDB for final approval.

• Anupdatecoveringthedatabaseofalllegislationinforceinthe Kingdom of Bahrain that includes all laws enacted in Bahrain since the 1930s until July 2008 has been distributed to all concerned departments and bodies in both the public and private sectors.

• Continuedfollow-uponlegalmattersrelatedtotheFreetrade Agreement with the united states of America.


Now in its second year, the Bahrain Ranking Project enables the Economic Development Board, Government, investors and other interested parties to gauge how the country is positioned internationally in relation to other economies across a number of key fiscal and social areas. the findings of the project are useful indices for Government and private sector performance, and help to illustrate those areas where the Kingdom is outperforming or underperforming internationally. this in turn helps to direct government focus and spending, and can also help to shape or support policymaking and legislation.

OBjectIveS the ranking project was established with a clear aim – to help build a better understanding of Bahrain’s economic standing with international audiences, and to help local policymakers understand the impact of their decisions on these global positions and perceptions.

the project uses data from a number of globally respected sources as part of its analysis, including research and findings from the Heritage Foundation, transparency International, united Nations Development Programme (uNDP), united Nations Conference on trade & Development (uNCtAD), World Bank and the World Economic Forum.

In 2008, the project generated reports about Bahrain’s position in line with the rankings from international organisations, and was able to detail Bahrain’s strengths and identify key areas for improvement according to each index. this report was then used to update relevant ministries and partners about the country’s progress and recommended areas for improvement. A committee with representatives from relevant national organisations was formed to follow up on Bahrain’s advancement and address those areas earmarked for progress.

MIleStOneS AcHIeved • BahrainwasincludedforthefirsttimeintheWorldBank’s

‘Doing Business’ report. Bahrain was ranked 18 out of 181 economies in the 2008 Doing Business report – putting the Kingdom among the top 20 economies in the world.

• TheEconomicDevelopmentBoardorganisedandhostedthelaunch of the World Bank Doing Business report in Bahrain in November 2008.

• BahrainhasjumpednineplacesintheUNDPHumanDevelopment index compared to the 2007 report – the highest improvement in the GCC. Bahrain now ranks 32 among 179 economies, as against 41 among 177 in 2007.

• TherankingprojectestablishedcontactandmetwiththeHeritage Foundation team in April 2008 and communicated the latest labour reform initiatives. this resulted in tremendous improvement for the labour freedom pillar in the Foundations Index – from a score of 40 in 2008 to 85.1 in 2009, which helped improve the overall rank from 19 among 161 nations in 2008 to 16 among 183 in 2009.

• Acommitteewasformedwithrepresentativesfromgovernmentorganisations for review and follow-up on areas for progress.

• ReportswereproducedonallindicesdetailingBahrain’sranking, areas of strength and concerns, and recommendations outlined by those organisations producing the indices.

sPOtLIGHt | BAHRAIN RANKING PROJECt



sPOtLIGHt | sPRING OF CuLtuRE

With a track record of two successful sell-out years, 2008 saw the Economic Development Board and the sector for Culture and Heritage pull out all the stops to make the third spring of Culture the best festival Bahrain had ever witnessed, with an estimated 30,000 people at more than 30 cultural events and performances over 45 days.

the undisputed highlight of spring of Culture 2008 was a performance by the legendary Fairouz at Arad Fort – with all tickets sold out and rapturous crowds flocking to see the singer in her first appearance in Bahrain in a decade.

New for 2008 was a dedicated family programme with seven events created especially for children or offering real appeal for all ages. these included the incredibly well received teatro Metastasio stabile della toscana’s Children’s Cheering Carpet – the Japanese Garden, an interactive theatre performance combining dance, storytelling and lots of audience participation.

Local talent also took their biggest role yet, with the Bahrain Arts society featuring renowned Bahraini artists Ali Al-Mahmeed, Mahdi Al-Bannai and Fuaad Al-Binfala. Works by

another local artist, Khalid Farhan were also exhibited within the festival programme, as was a performance by Bahraini musician and composer Majeed Marhoun.

the festival is not only now the undisputed cultural highlight in Bahrain’s social calendar, but also boosts tourism to the Kingdom. In addition, through careful selection of venues like Arad Fort, the National Museum and the Historic Houses of Muharraq, the event brings the wealth of the Kingdom’s heritage to a whole new audience.

spring of Culture 2008 was organised by the Economic Development Board in association with the sector of Culture and Heritage at the Ministry of Information and the sheikh Ebrahim Bin Mohammed Al-Khalifa Center for Culture and Research, and arts centres and galleries across Bahrain including: Al Riwaq Gallery, La Fontaine Center for Contemporary Art, Albareh Art Gallery and the Bahrain Arts society. the festival was sponsored by the Bahrain Mumtalakat Holding Company.

sPOtLIGHt | tAXI REGuLAtION


In 2008, the Economic Development Board worked with partners in Government including the Ministry of Interior, Ministry of Justice and the Bahrain Development Bank to regulate and upgrade taxi services in Bahrain. the Ministry of Interior set up a regulator for the taxi industry, and enforcement measures to protect both the drivers and the customers. Fares were reviewed to ensure that all drivers can live in dignity, and metres were distributed free of charge to all drivers. In light of the need for an increase in transport services to meet growing customer demand, 200 new licenses were issued into the market. A new taxi company, the Arabian taxi Company, was established to act as a prototype social enterprise; providing employment for up to 650 Bahrainis and generating revenue for an 80 per cent shareholder base of widows and orphans of deceased taxi drivers, and elderly drivers. the remaining 20 per cent of the company is owned by Bahrain Development Bank.

the Arabian taxi Company board was established, and 200 London ‘Black Cabs’ were purchased and imported for the new service, ensuring accessibility and safety for wheelchair users and for families with young children as well as helping to create an iconic and immediately recognisable brand at the launch. the company was formed with the intention of playing a vital role in the development of the taxi sector in the Kingdom, and encouraging other prospective taxi licensees to set up their own companies in the near future. the new taxis will be operational in February 2009. the Bahrain Development Bank encourages other taxi license owners to pool together to create other taxi companies further upgrading the services to the economy.

the Economic Development Board and its partners in Government are committed to the establishment of the sector not just to provide better services for Bahrain, but also to ensure that the Kingdom’s tourism sector is boosted by the new licensed service.

the Economic Development Board continues to work with the Ministry of Finance to ensure that the private sector plays a greater role in the delivery of select public services and systems for Bahrain.

As part of this continued drive, the Government has contracted the delivery of key projects to the private sector. these include the building and operation of a number of power and water plants to ensure the increasing utility demands of a growing population are met. In 2008, the contracts for the implementation of Addur Power and Water Plant were signed, with GDF suez and Gulf Investment Corporation (suEZ/GIC) undertaking the design, construction and operation of a 1234MW power facility and a 48MIGD desalination facility, following a competitive tendering process. the Addur project follows on from the 2004 AlEzzel Power Project and the 2006 AlHidd Power and Water project.

Work also continued apace on appointing private services for King Hamad General Hospital in Muharraq. the hospital is one of the biggest single public sector health projects that Bahrain has seen in recent years. scheduled to open in 2010, it will provide state-of-the-art healthcare services to all residents. In addition to providing in-patient and outpatient facilities, KHGH will also house Bahrain Medical university.

Initial activity also took place on the privatisation of sanitary engineering services during 2008 with the appointment of consultants for a National Privatisation strategy and implementation plan and a pilot fast track project to develop a sewerage treatment plant (stP) in Muharraq.

sPOtLIGHt | PRIVAtIsAtION


sharing the advantages of doing business in Bahrain with the wider world is one of the key objectives of Economic Development Board. By communicating the strengths of the Kingdom to potential investors, the organisation aims to encourage inward foreign direct investment (FDI) which in turn helps to create jobs and opportunities, leading to sustainable economic growth.

During 2008, the Economic Development Board has continued to build on the foundations it has put in place since the organisation was established, and as a result has increased awareness of Bahrain as a business friendly destination with key corporate and investor audiences across the world.

using a number of communications channels – including advertising, marketing, events and public relations – to help maximise reach and relevance, the Econcomic Development Board coordinates its activity with key stakeholders in Bahrain and internationally, with the aim of informing and influencing prospective FDI decision makers and opinion formers, as well as the regional and global media across target markets including Europe, the united states, parts of Asia and the MENA region.

INVEstMENt PROMOtION AND GLOBAL MARKEtING

Section 2 | Investment Promotion and Global Marketing

GLOBAL MARKEtING & COMMuNICAtIONs


OBjectIveS the Economic Development Board works to increase awareness of Bahrain’s strengths as a leading business destination, and to highlight its central and strategic location which provides the best market access throughout the Gulf. In particular, it aims to encourage the establishment of businesses in key value-added industry sectors to help to create well-paying and secure jobs for Bahrain’s growing population over the long term.

these aims led to the launch of the Kingdom’s first ever advertising campaign in 2008, which was based on the clear and concise message that Bahrain is the ideal location for businesses wishing to access Middle East markets. the Business Friendly Bahrain campaign communicates Bahrain’s business credentials in a way which is at once relevant and open, promoting an environment uniquely designed to cater to the needs and demands of growing business.

In addition to the advertising campaign, a worldwide PR campaign was also rolled-out, targeting leading tier 1 media outlets in key markets, shaping editorial opportunities which contribute to the understanding of Bahrain’s key messages, and providing greater resonance given the third party endorsement of reporters and analysts. In addition, substantial internal PR capabilities within the Economic Development Board were developed, and the organisation took on the task of co-ordinating and aligning messaging and media communications across key Bahraini organisations.

this launch campaign was largely aimed at driving awareness and establishing the Business Friendly Bahrain brand. to maximise impact, campaign placements covered television, print (newspapers and magazines), digital (websites and other online media) and outdoor (billboards and branded taxis) in a number of key markets – both Gulf-wide and internationally. Branded printed collateral was also produced, including a family of investor brochures and display materials for use at events and exhibitions. since the launch, research findings have indicated that those exposed to the campaign show a greater affinity with and understanding of investing in Bahrain.

MIleStOneS:• The Business Friendly Bahrain advertising campaign

concept was created, with supporting key messages developed to run across all communications platforms.

• AmediastrategyandplantolaunchBusiness Friendly Bahrain was created, with placements across tV, print, outdoor/taxi and online advertising.

• Theadvertisingcampaignwaslaunchedtoestablishtheline“Business Friendly Bahrain” across identified investor markets including Europe, the GCC and parts of Asia.

• AsuiteofBusiness Friendly Bahrain marketing materials was developed, including three newly redesigned websites – www.bahrain.com, www.bahrainfs.com, and www.bahrainedb.com – two brochures, five sector-specific factsheets and a number of real life case studies.

• Bahrainhadastrongpresenceatanumberofhighprofile


business events internationally – including awareness-raising events such as the World Economic Forum, hospitality events such as F1, and sector-specific, FDI lead-generating events like Fund Forum.

• CentralmessagesformarketingwerealignedbetweentheEconomic Development Board and other key stakeholders, with Business Friendly Bahrain co-branded to ensure greater prominence and increased market cut-through.

• Phaseoneofthequalitativeandquantitativeresearchwaslaunched with the aim of generating information about FDI decision makers’ attitudes towards investments, their preferred sources of information and the early impact of the Business Friendly Bahrain campaign and PR initiatives to date.

• TheEconomicDevelopmentBoardhostedjournalistsfromleading regional and international media – including Al Hayat, Asharq Al Awsat, Associated Press, CNN, Financial Times, Le Monde Diplomatique, MEED and Wall Street Journal.

• High-levelmeetingsweresetupwithkeymediaexecutivesand political influencers – including leading international business publications and financial institutions.

• MediatrainingoftenkeyBahrainspokespeopletookplaceto ensure consistency and clarity of messaging – with recipients including the Economic Development Board’s

management team, members of the Board, government ministers and other select Bahrain-based stakeholders.

• Almost600piecesofmediacoverageaboutBahrainweregenerated, more than 50 of which appeared in leading regional and international media, including Al Hayat, Wall Street Journal, and Financial Times.

• Over30strategically-placedfeaturesweredeveloped,including a Bahrain special Report in the FT and a Middle East special report in Financial News.

• Morethan40internationallyfocusednewsstorieswerewritten and issued to highlight Bahrain’s rankings in global indices, to promote Bahraini presence at global events, to signal the implementation of education and labour reforms, and to publicise other newsworthy milestones.

• SpeechesandtalkingpointswerepreparedforBahrainispokespeople taking part in high profile events worldwide.


Business Friendly Bahrain is the international advertising campaign launched by the Economic Development Board in 2008 which aims to increase investor awareness, and ensure that the Kingdom is top-of-mind for businesses looking to establish a commercial base in the Gulf. the core of the campaign is inspired by the country’s regional market access, its strong, stable track record, and its open business environment designed to encourage companies to thrive. Aside from the direct play on being an attractive environment for business, the graphical depiction of “friendly” in the well-known term “business friendly” is also intended to underscore the distinctive advantages of Bahraini lifestyle and hospitality.

Business Friendly Bahrain has been a major, coordinated effort that has resulted in a raised profile for the Kingdom among key industry audiences. Running across television – with spots on CNN, BBC World and Al Arabiya – as well as in newspapers and magazines locally, regionally and internationally, the campaign has been seen by millions of people, including the highest level decision makers across global industry. In Bahrain, the campaign was also rolled out locally throughout the year to ensure that businesses, stakeholders and the wider population were aware of the messages being communicated about the Kingdom to the world at large. In advance of the campaign launch, its key messages and aims were also shared with a number of public and private sector stakeholders through meetings and workshops, with a view to ensuring that the campaign was supported from the ground-up from the outset. In addition to television and print advertising and outdoor campaigns on billboards and London taxis, the campaign creative was also carried by Gulf Air on its flights, and was even used on passport stamps for visitors arriving at immigration. Business Friendly Bahrain messaging was also introduced on a series of special postage stamps and on sMs messages received on arrival in the Kingdom. Logistics company DHL now uses a Business Friendly Bahrain stamp on all parcels and packages travelling through its Manama hub.

sPOtLIGHt | BusINEss FRIENDLY BAHRAIN

sPOtLIGHt | ONLINE ENGAGEMENt

In 2008, three refreshed websites were launched simultaneously with the onset of print and tV advertising to provide seamless integration of the Business Friendly Bahrain theme – www.bahrain.com; www.bahrainedb.com, the Economic Development Board’s main site; and www.bahrainfs.com, a website dedicated to the development of the finance sector in Bahrain. the second two sites can be accessed through the main Bahrain.com portal, which acts as the country’s official information source for both international prospects and local audiences.

At each of the three sites, site visitors can read about investment opportunities in the country, and also find out about living and working in Bahrain. Equally, local audiences – both Bahraini and expatriates – can find out about the latest events in the Kingdom, as well as sourcing detailed information on schools, universities, restaurants, hotels and more.

As a further promotional tool, a dedicated Bahrain Youtube page was set up, taking the Kingdom into the realm of social networking. the page was launched with an interview with CEO shaikh Mohammed during the Davos campaign, and has since seen the addition of all campaign commercials, with visitors’ comments and feedback welcomed and tracked.


sPOtLIGHt | NEW COLLAtERAL

As part of an integrated marketing and communications toolkit for the Kingdom, 2008 saw the development and production of the new, investor-focused marketing collateral. Each piece of collateral – which included leaflets, brochures, exhibition graphics and displays, and more – was designed to help communicate relevant sector and industry specific information, with key messages and statistics aligned with the overarching Business Friendly Bahrain theme.

An important addition to the collateral produced during 2008 was the Ambassador’s Handbook: a guide created to encourage ambassadors, champions and key media spokespeople to speak with “one voice” about Bahrain, with supporting facts and information available at their fingertips.

In addition to new brochures, dedicated industry and sector specific factsheets were developed to help attract investors from those businesses and sectors that have been earmarked for growth and government support. these include the automotive, logistics, financial and other value added sectors, with collateral available in multiple languages tailored to industry presence in international markets

sPOtLIGHt | WORLD ECONOMIC FORuM

Bahrain was once again involved at the highest level in the most important business dialogue of the year, the World Economic Forum meetings in Davos, switzerland. In 2008, His Highness shaikh salman, Crown Prince and Chairman of the Economic Development Board, led a high level delegation of senior government officials and private sector representatives at the meetings.

His Highness the Crown Prince participated in a roundtable with other leading global figures titled “Rebuilding Brand America: Five suggestions for the Future President” which addressed ways in which the next us president could contribute to improved international brand equity for the country. the CEO of the Economic Development Board, shaikh Mohammed bin Essa Al Khalifa also participated in the discussion “Risky for Business: Flashpoints in Focus”, which examined the geopolitical tension risks that can trigger global economic sanctions or disruptions to major commodity markets and supply routes.

During Davos, two events and one sponsored CNN breakfast session were organised by the Economic Development Board to promote Bahrain at the Forum. A Bahraini themed lunch at the Congress Centre took place under the patronage of His Highness the Crown Prince, which included a full Bahraini-inspired buffet with live music from the Bahrain Orchestra, as well as a reception event and visual arts exhibition by leading Bahraini abstract artists. In addition, all senior Bahraini representatives at the Forum also acted as country spokespeople for the hundreds of international media outlets reporting on the Forum.


In 2008, a number of leading regional and international journalists were invited as guests of the Economic Development Board to the annual Formula One Grand Prix, with the aim of building relationships between key media and Bahraini stakeholders.

the hosted visit included a breakfast presentation by Chief Executive shaikh Mohammed bin Essa Al Khalifa, in which he outlined Bahrain’s value proposition as a business destination and discussed plans for further economic development. A series of meetings with officials were also arranged, to showcase Bahrain’s progress and development. the media were also taken to the Bahrain International Circuit, where they received tours of the facilities and were able to experience the thrill of the Grand Prix first hand. the visit was completed with a taste of Bahrain’s cultural and historical offerings with a performance of Stomp, part of the spring of Culture Festival at the heritage site, Arad Fort.

sPOtLIGHt | FORMuLA ONE 2008

sPOtLIGHt | sINGAPORE AND JAPAN ROAD sHOW

Led by His Highness the Crown Prince and Chairman of the Economic Development Board, shaikh salman bin Hamad Al Khalifa, a high level delegation from Bahrain visited singapore and Japan for a series of business and government meetings – with a clear focus on education and workforce development. Both visits incorporated a number of interviews with the leading national media outlets of both countries, where spokespeople were able to convey key messages about Bahrain to international investor audiences via the media. these interviews brought into focus Bahrain’s drive to improve education and to build a skilled and talented labour force that responds to the demands of industry and commerce.


sPOtLIGHt | WORLD ECONOMIC FORuM

tasked with communicating the work of the organisation itself, the scope of the public sector reform agenda, Bahrain’s Economic Vision 2030 and the National Economic strategy – the National Communications of the Economic Development Board actively sought to engage with multiple and varied national stakeholders to raise awareness and build grassroots support throughout the year.

OBjectIveSthe Economic Development Board works to create a dialogue with multiple stakeholder partners across the Kingdom with a view to clarifying and unifying aims, objectives and approaches to ensure economic wellbeing.

In the context of Vision 2030, the aim of the Economic Development Board is to create awareness and instill a sense of roles and responsibilities for all stakeholders across Bahrain — including the media, civil society, government and the private sector, as well as the people of Bahrain. A detailed communications plan was put in place to achieve this goal and to engage the public in the realisation of Vision 2030, working closely with government and ministerial officials to communicate the Government’s objective to build a better life for every Bahraini.

throughout the year, the Economic Development Board informed stakeholders of key issues of change; communicating the breadth of activity being undertaken by the organisation and by its public and private sector partners. Issue analysis on areas impacting on the economy, including education, labour, and transport reform, was also conducted on an ongoing basis throughout 2008.

As part of its day-to-day work, the Economic Development Board actively engages with media by issuing press releases, holding regular media briefings and press conferences, and by fielding all national press enquiries.

NAtIONAL COMMuNICAtIONs

MIleStOneS AcHIeved:• In2008,theEconomicDevelopmentBoardlaunchedthe

Economic Vision 2030, and communicated its aims and objectives to multiple stakeholder groups.

• TheVision2030CommunicationsStrategywasalsolaunched in October, and in November 2008 the National Communications Centre was established as part of the National Communication department at the Economic Development Board, acting as a hub for streamlining Government communications on Vision 2030.

• 2008alsosawtheformationofthenewGovernmentCommunications Professionals network, a body established to help build skills, develop relationships and share best practice among those working in communications across the public sector. two workshops were held in 2008, with around 60 attendees at each with every ministry represented. the workshops will take place monthly in 2009.

• Foureducationinitiativelauncheswerecoordinatedandcommunicated during the year – the Bahrain Polytechnic, the Bahrain teachers College, the Quality Assurance Authority, and the school Improvement Programme.

• Allmediarelationsactivitiestopromotethe2008SpringofCulture Festival with national and regional audiences were undertaken.

• Anumberofpublicationstargetedatstakeholderswereproduced with the aim of increasing transparency and openness. these included the Economic Vision 2030 document; the 2007 Operating Review for the Economic Development Board; and three issues of the regular magazine on key economic issues, Bahrain Economic Forum.


the Economic Vision 2030 was officially launched by His Majesty King Hamad bin Isa Al Khalifa on 23 October 2008. the launch was indicative of the fact that the full weight of Government is firmly behind achieving the aims of Vision 2030, and building a better life for every Bahraini.

this event marked the start of a journey, which will see the transformation of the economy away from oil and towards a diversified base with greater value-added industry and services, and increased levels of productivity.

sPOtLIGHt | LAuNCH OF tHE ECONOMIC VIsION 2030


In 2008, the Government Communications Professionals network was established, bringing together everyone across the Government’s PR professional database. the network builds the relationships needed to broadcast the messages of the Bahrain Economic Vision 2030, ensuring transfer of information, skills and best practices, and streamlining the communications between each area of Government and all stakeholders.

In November 2008, the network held its first workshop, which was attended by around 60 communications professionals. the event was a resounding success; helping to build relationships, ensure seamless transfer of information, and align messages. A second workshop was held in December 2008 with equal success, and plans were made to continue the monthly workshop format into 2009.

sPOtLIGHt | COMMuNICAtORs IN GOVERNMENt

sPOtLIGHt | PuBLICAtIONs

Over the course of the year, the Economic Development Board produced a number of publications, each tailored to a specific audience in Bahrain. Publications included Vision 2030 – a comprehensive document laying out Vision 2030 in detail, designed to communicate its objectives to all interested parties including Ministries and other government organisations. this document was circulated widely and is also available to download from the Economic Development Board’s website – www.bahrainedb.com.

For the second year running, an annual Operating Review detailing the activity of the Economic Development Board over the course of the previous 12 months was produced. this was designed to provide clarity and transparency about the work of the organisation and to ensure that its core values of openness and accountability were upheld.

three further editions of the Bahrain Economic Forum were edited and produced by the Economic Development Board during the year. the magazine contains articles and comment from third parties on key issues of national economic interest in a user-friendly format in dual languages for a Bahraini-wide audience.


AttRACtING INVEstMENt tO BAHRAIN


In an ever more competitive global business environment, reaching out to and attracting global investors is essential to safeguard any growing and ambitious economy.

In 2008, the Economic Development Board continued to work with its partners in government and the private sector to identify the types of investors and investments of most benefit to Bahrain’s long term growth and success, and to bring these investors to Bahrain.

the Business Development department also focuses on key industrial sectors in order to generate medium and high-skilled jobs such as ICt, manufacturing and professional services.

OBjectIveS2008 brought with it a clear aim for the Economic Development Board – to attract increased levels of inward foreign direct investment to Bahrain, and crucially, to attract those investors and industries that offered the most for Bahrain and its people by providing secure well paid employment opportunities over the immediate, medium and long term.

Armed with this clear focus and coupled with a more aggressive approach to marketing, the organisation worked to identify and support investor activity in those industry sectors and sub-sectors where Bahrain has a strong value proposition – including financial services, the downstream industries, and information communications technology (ICt).

As part of this activity, significant work was undertaken to hone effective sales messages and versatile marketing materials which communicated Bahrain’s competitive advantages for each priority sector. these messages were designed to resonate with decision makers at international companies in target markets, with a view to generating more investor referrals. In addition, activity in 2008 was designed to encourage embassies and other key overseas stakeholders to refer quality investors to the Economic Development Board. this ‘joined up’ activity has a critical role to play in ensuring that Bahrain is acknowledged as a location which supports its investors by providing the highest levels of support and facilitation, given increased competition globally.

In 2008, the Economic Development Board worked on increasing capabilities internally too, by upgrading business information systems to track opportunities in the investment

pipeline, and capture relevant data to support its activities. Additionally, training took place to enhance staff skills and increase levels of expertise in specific business sectors, including project management.

MIleStOneS• During2008,keyperformanceindicatortargetsfortheyear

were reached. A total of 28 new companies were encouraged to set up in the Kingdom, with the majority of investors coming from the target high-value business sectors including information and communications technology (ICt), human resources and consulting, and manufacturing industries. More than 1,200 jobs were created; 70 per cent of these in priority target sectors.

• InvestorswerealertedtothemeritsofdoingbusinessinBahrain at 12 specialised conferences and exhibitions globally, which were attended by representatives from the Economic Development Board as well as key decision makers from identified target industries.

• Twodirectmarketingcampaignsweredevelopedandrolledout in Europe and Japan. these were timed to coincide with activity and events at which the Economic Development Board had a presence.

• Twentybusinessandinvestmentdelegationswerehostedby the Economic Development Board in 2008, an average of one visit every two to three weeks. Visiting delegations included senior officials from government and industry in Egypt, Germany and singapore.

• Anewcustomerrelationshipmanagement(CRM)systemwas put in place, designed to keep track of all existing and new clients and leads.

• FacilitationServices–anaftercareandoutreachprogrammeestablished in 2007 was developed further to cater to the needs of existing investors and to encourage them to continue investing in Bahrain.


sPOtLIGHt | BAHRAIN INtERNAtIONAL BusINEss ORIENtAtION WEEK

For the third year running, the Economic Development Board organised and hosted the annual Bahrain International Business Orientation Week (BIBOW) along with its partner, the Ministry of Foreign Affairs. the three day event took place at the Banyan tree Resort with the aim of building a more focused and integrated international network for Bahrain, and to ensure clear and consistent communication of key messages about Bahrain’s benefits as a business and investment destination.

this year’s forum saw delegates take part in workshops and seminars, which were primarily focused on advancements in economic reforms, major development and project updates, enhancements in the labour market and information on target sectors for investment. this year’s participants included representatives from tamkeen, Bahrain Mumtalakat Holding Company and the Labour Market Regulatory Authority, amongst others.

Feedback from delegates once again highlighted the value of the event in providing participants with a concise overview of Bahrain’s strengths and investment opportunities across different sectors; helping to promote seamless and integrated communications with potential investors and other stakeholders internationally, regionally and locally.

sPOtLIGHt | FACILItAtION sERVICEs

the Facilitation service aftercare team was established by the Economic Development Board in 2008. this dedicated unit supports national and international companies during the registration process when setting up a business in Bahrain.

the team works to ensure that companies are aware of all the laws, rules and regulations for conducting business activities in their sector. the service essentially offers “hand-holding” for companies throughout the commercial registration procedure to ensure streamlined, straightforward and transparent processes and to ensure that all approvals, visas, work permits and other related protocols are in place. As an added benefit, assistance is also provided with sourcing and locating any resources required, such as land or commercial space for example.

the new aftercare team is in regular contact with key officials at relevant ministries and government agencies to provide continuous and integrated support for investors. In addition, constant contact is maintained with the Economic Development Board’s legal experts to make certain that all business activity is in strict compliance with the latest laws and regulations.

since its inception, the aftercare service has been instrumental in helping 19 international companies complete the registration process. A further 43 international companies have received support and advice on other registration related issues like visas, work permits and municipality issues.


sulzer Chemtech Middle East is a subsidiary of sulzer Chemtech Limited, a swiss technology company which is part of the sulzer Group, a world leader in mass-transfer technology.

sulzer Chemtech Limited set up local operations in Bahrain as part of the company’s strategy to service and support customers in the oil, petrochemical, and gas processing industries across the MENA region. All regional markets are now serviced directly from the operation in Bahrain.

After receiving advice, support and information from the Economic Development Board, the company chose Bahrain as its regional headquarters based on the Kingdom’s strong financial regulations, economic and political stability, and strategic geographical position and connectivity to regional markets, in particular the eastern oil-producing provinces of saudi Arabia.

Dr. Rafiq traboulssi, Head – Operations & supply Chain, Mtt-MENA was impressed by the quality and can-do approach of the local workforce, including the wealth of local mechanical and chemical engineers. He was also positive about the aftercare service provided by the Economic Development Board. He said, “Our company is currently developing plans to build a new workshop at Bahrain International Investment Park – a task that has many local challenges and requires a lot of support. the Economic Development Board has been very helpful, and provided valuable assistance every time it was needed.”

sPOtLIGHt | suLZER

sPOtLIGHt | MANPOWER

Manpower, headquartered in the united states, is one of the world leaders in the employment services industry. the us$21 billion company has a network of 4,500 offices in 80 countries and territories servicing 400,000 customers every year, including small and medium size enterprises across all sectors, as well as multinational corporations.

As one of those companies fitting firmly within the key target high value business service sector, the Economic Development Board extended its support services to Manpower and was instrumental in helping the company establish a presence in Bahrain. Varina Nissen, Managing Director, Manpower Middle East said, “Bahrain impressed us as a market committed to growth by opening its labour market practices to increase the flexibility and agility to provide talent to businesses in the Kingdom. this makes Bahrain an attractive market for Manpower Professional.”


sPOtLIGHt | FACILItAtION sERVICEs

sPOtLIGHt | tHIRD WAVE

third Wave International provides consulting, training, and management outsourcing services. the company has provided consultancy and training for more than over 300 businesses, agencies and organisations in the last 14 years.

the Economic Development Board provided support and advice for the company during the establishment of its Middle East office in Bahrain in 2008. third Wave International is now working to provide support to tamkeen and is reviewing and reporting on the quality and effectiveness of training provided by all training service providers in Bahrain. stefan Moraes, Managing Director, third Wave said, “We are delighted customers of the Economic Development Board and would be pleased to communicate the professionalism demonstrated by the organisation to any potential investor or stakeholder.”

finance and investment in the Arab world. the Economic Development Board has been providing support and advice to Financials technologies, the company establishing the Exchange.

Jignesh shah, CEO and Chairman, Financial technologies, said: “Bahrain is widely regarded as the best-regulated financial centre in the Middle East. Important developments are taking place in the country to widen the scope of financial services. through the BFX, Financial technologies will endeavour to participate in these developments and significantly contribute to the emerging globalised economy of Bahrain. the multi-asset profile of BFX will give it a unique standing to become a leading market place in the region.”


sPOtLIGHt | BFX

the BFX, regulated by the Central Bank of Bahrain, has been given approval to list cash and derivatives instruments on multiple asset classes such as currencies, commodities, equity and debt related products for trading and clearing by its brokers. the Exchange will also list and trade Islamic finance instruments or sharia compliant products. the Exchange, which is now registered with the Ministry of Industry & Commerce, will begin trading in 2010. the Exchange is being developed to increase performance in the Middle East financial markets through enhanced price discovery, market transparency, risk management, cross-border economic integration,

sPOtLIGHt | CBRE

CB Richard Ellis Group Inc, a Fortune 500 and s&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm based on 2007 revenue. With over 29,000 employees, the company has more than 300 offices worldwide.

CB Richard Ellis was attracted to Bahrain as a financial centre. the new Bahrain office, set up in 2008 with support from the Economic Development Board, represents an important building block in the development of the firm’s Middle Eastern business. the new office will also extend the company’s ability to provide consultancy services to local investors in the Gulf region seeking to invest overseas. CB Richard Ellis expects to employ a staff of more than 20 in Bahrain by the end of 2009.

Nick Maclean, Managing Director CB Richard Ellis Middle East, said “Bahrain has long enjoyed a history of commercial success, reflected in the many completed landmark developments and those planned for the future. the office opening in the central business district of Manama complements our regional strategy of expansion. the Bahrain office further offers a strong platform to enter important markets such as saudi Arabia and Qatar.”


sPOtLIGHt | FEstO

Festo is a worldwide leading supplier of pneumatic and electrical automation technology. the independent family enterprise with headquarters in Esslingen, Germany, has evolved into a performance leader within its industry. Festo Group generated turnover of €1.65 billion in the 2007 fiscal year, and now has 12,800 employees at 250 locations globally.

In 2007 and 2008, the Economic Development Board worked with Festo to facilitate the opening of a representative office in Bahrain. this office will become the regional base for major expansion into the Gulf region for manufacturing and

distribution. this concerted effort ensured that the company, which had been looking to set up in Dubai, instead decided to locate to the Kingdom. Mr. Nael Abu sinni, Regional Manager, MENA said: “On first meeting with the Economic Development Board at Hanover Messe Fair 2007, we were convinced to start up in a neighbouring country, but finally we were convinced to change our decision towards Bahrain – it was a hard job and the team should be congratulated. the personal and professional approach shown during meetings and the provision of necessary information was very important, especially in the eyes of a European company.”


sPOtLIGHt | MENA

the MENA-OECD Centre for Investment, created by the Economic Development Board in 2006 and established in 2007, is the first partnership between the Organisation for Economic Cooperation and Development (OECD) and an Arab country. the centre’s role is to provide unbiased investment-focused services and research to 22 Arab nations, with the aim of encouraging progress and innovation for people, governments and businesses across the Middle East and North Africa.

In 2008, the centre organised and hosted a total of ten events in Bahrain for participants from across the region. A mix of training courses, forums, workshops and conferences, each event was designed to tackle a key area of activity as identified by OECD and the MENA Centre.

In January, a training session on FDI statistics for policymaking in light of a revision of international standards was held, with more than 40 high level delegates attending from across the GCC.

the focus of all other programmes was on showcasing and promoting investment opportunities across the region, including: a united Nations Industrial Development Organization (uNIDO) MENA conference; workshops for government officials on developing investment promotion strategies, laws and international agreements, aftercare and corporate location benchmarking, entrepreneurship, and sME’s policy, as well as examining the empowerment of women through effective use of communication and media, attracting more than 60 participants. In July, a Bahraini-Lebanese Franchise association forum introduced opportunities for joint investments between local and Lebanese entrepreneurs and small businesses.

In september, the MENA Centre for Investment together with the Economic Development Board launched the united Nations Conference on trade and Development’s (uNCtAD’s) World Investment Report in the GCC. the report, produced annually, is viewed as the authoritative global data on inward and outward foreign direct investment trends.


WORLD CLAss ORGANIsAtION


streamlined and effective management and administration is essential to the smooth running of every organisation. that is why the Economic Development Board works hard to ensure that its ‘back office’ operates like a well-oiled machine, maximising transparency and providing the highest levels of service to Bahrain’s people, its business community, institutions, and the organisation itself.

OBjectIveS the organisation aims to provide leadership in delivering proactive technological and financial solutions to support the wider strategic plan. this includes optimising management, managing the allocation of funds, and building an effective information and communication infrastructure.

It is important that all finance, administration, information technology (It) and human resources (HR) systems should use the most appropriate levels of technology, employ the best people in the right places, and ensure clear and open channels of communication to allow the organisation to operate at maximum efficiency.

Providing innovative, timely, efficient and cost-effective services and systems is also a priority. this enables the organisation to deliver the highest levels of customer satisfaction and offer the best value of service for the benefit of the country, its people and the economy.

the Economic Development Board also has a responsibility to lead by example, and is committed to investing in its people to equip them with the experience, skills and knowledge they need to perform to the best of their abilities.

In addition, it maintains strict adherence to all matters relating to accountability and transparency, ensuring all financial documents are submitted in accordance with legislation and best practice and in line with tender board regulations, where applicable.

MIleStOneS AcHIeved • In2008,newadministrativeserviceswereestablishedinthe

EDB to help ease communication flow, improve financial operations, and help obtain access to other services including the launch of an online pay slip and electronic transfers.

• Anewhumanresourcesprogramme,called‘PeopleMatter’,was introduced to bring focus and transparency across all employee operations. As part of the programme, updated job descriptions were issued, as was a new employee handbook. In addition, five exceptional employees were recognised for achievements in the workplace.

• ‘PerformanceMatters’wasalsodevelopedaspartofthehuman resource programme, providing truthful and constructive feedback, identifying areas for improvement, recognizing and rewarding success and ensuring consequences for those who performed below expectations.

• Theintranetwasupdated,makingitmorerelevant,user-friendly and interactive for everyone at the organisation.

• Anumberofeventsforstaffandtheirfamilieswereorganised over the year, designed to instil a friendly and cooperative atmosphere in the workplace. these included the yearly Ramadhan Ghabga and Eid Gathering.


In 2008, the main focus for the Economic Development Board was finalising and launching Bahrain’s Economic Vision 2030 – a significant achievement for the Government. Going forward into 2009, the Economic Development Board will again build on its achievements to date, increasing and accelerating the positive impacts of its activity.

A major objective will be turning the Vision 2030 into a reality, and building a better life for every Bahraini. the National Economic strategy (2009-2014) – which covers government, social and economic activity over the next six years – lays out the roadmap and helps to steer the Kingdom towards this ultimate aim. In 2009, the National Economic strategy will be one of the key drivers of the Economic Development Board’s work. In partnership with Government, the organisation will help to support the work of the individual ministries and agencies to realize Vision 2030.

Also part of the National Economic strategy, the organisation will work to ensure that the nation’s infrastructure is effectively supporting economic aims and objectives, and also takes future needs and demands into account.

Working with each and every Ministry to ensure that all activity is aligned and complementary and reflects the aims and objectives of the National Economic strategy towards Bahrain’s Economic Vision 2030, will be a clear motivation for activity. throughout 2009, different levels of support will be given across all Government departments, including skills transfer and capacity building, with the aim of strengthening quality and improving efficiency throughout the public sector.

Priority areas for investment will continue to be education and training, to ensure that Bahrain’s people are best equipped for the ever-evolving global work environment, which has never been more important given the current economic climate. the National Education Reform Initiatives are now entering their

tHE WAY FORWARD

operational phase, and by the start of the new academic year in september 2009, many of the pilot programmes will have been completed, with new and improved services fully operational and increased levels of support and feedback given to teachers, students and parents at primary, secondary and tertiary levels. the first intakes of both the Bahrain Polytechnic and the Bahrain teachers’ College will have also completed their first full year and this pioneering set of newly qualified students will be making an impact on their respective work environments, sharing newly developed skills with the nation’s children and businesses. Nationally, to support all activity and enhance understanding of what the Bahrain Economic Vision 2030 means and why it is so important, the work of the recently established Communications Centre will be expanded in 2009. In addition, a programme to upgrade the standards of communications practitioners in the Kingdom will be enhanced; centred on consistent and effective communications stemming from all government parties, with dedicated training and workshops throughout the year. As Bahrain’s business-friendly environment is a key selling point, joining up policymaking and planning to ensure that this competitive advantage is retained and built on is critical for future prosperity and growth. these streams of activity with public sector agencies will result in enhanced service delivery, offering better value for Bahrain’s people and industries. By helping to enhance and clarify communications channels between ministries, processes are simplified and streamlined, maximising productivity for all parties.

During the economic downturn, the Economic Development Board continues to take a long term approach to its policies and priorities, engaging with stakeholders to deliver a secure and sustainable future. As a result, the drive to diversify the


economy even further will continue. Identifying and targeting the most appropriate industries and individual investors, in line with Bahrain’s human and natural resources and the aims of the Vision, will shape approaches and areas for investor communication throughout the year. Continuing to attract intelligent investment across key sectors and exploring responsible expansion of existing businesses will be undertaken with a view to ramping up levels of activity once global recovery is underway.

the global marketing and communications strategy will also continue to be developed in 2009, positioning Bahrain ever more positively in the minds of those investors looking to establish a base in the Gulf. Again, in light of the global economic downturn, it is more crucial than ever to ensure that potentially interested parties are reached at the right time, using the right messages and the most appropriate media.

to ensure that the Economic Development board itself is fit and healthy and operating at its best, work will continue to provide training and capacity building internally, to help develop the skills and productivity of its teams and individuals at all levels. the organisation will accelerate its drive to ensure accountability and transparency in all operations, and will

maximise its efforts to provide the best possible service for the people, the Government and Bahrain’s businesses and investors, whether local, regional or international.

Working together in 2009, the drive will continue to create new leaders for Bahrain, people and businesses that will boost the economy and inspire a new working culture – one that ensures that the Vision 2030 becomes the reality of a better life for every Bahraini.


bahrain annual review 2008

Documents

government spotlight

bahrain polytechnic

governance spotlight

festo spotlight

cbre spotlight

wave spotlight

bfx spotlight

manpower spotlight