2011 Bahrain Country Commercial Guide - US - Export.gov

Government has renewed the contract with CARS until April 2012. The Government‘s
total investment in the public transportation privatization project has reached
approximately USD 21 million.
The Kingdom's first independent power plant project (IPP) was also successfully
tendered and awarded to Bahraini-based Al Ezzel Independent Power Producer (IPP),
which is equally owned by a Belgian-Gulf consortium of Tractebel EGI and Gulf
Investment Corporation. In 2006, the Government sold their biggest electrical plant Al
Hidd Power Station for USD 728 Million to the consortium. In 2008, the Tender Board
awarded a USD 2.2 billion contract to build a new electrical power plant in Bahrain—the
Al Dur Water and Power Station—to Kuwait-based Gulf Investment Corporation(GIC)
and France's GDF Suez. In September 2009 the Higher Commission of Electricity
awarded a $240 million contract to General Electric purchase new gas turbines as part
of a plan to expand the existing Al Dur Power Plant.
In 2008, the Government founded the General Organization of Ports to oversee all port
activities, including both marine and air. In 2006, Denmark‘s Muller was awarded a
contract to manage Mina Salman and the new Mina Khalifa ports. The new port officially
started operating in November 2009.
In 2006 the Bahrain Monetary Agency transformed into the Central Bank of Bahrain
(CBB). Seeking to maintain Bahrain's status as the Gulf region's preeminent financial
center, the CBB changed its licensing practices in 2006 to give banks greater
opportunities to invest domestically and regionally. The CBB has been active in
developing regulations for the Islamic Banking sector, and has been instrumental in
making Bahrain a recognized center of Islamic Banking.
In January 2011, the Bahrain Stock Exchange was transformed to a closed shareholding
company. The newly-branded Bahrain Bourse is wholly owned by the GOB and
regulated by the Central Bank of Bahrain. Bahrain Bourse now plans to increase its
number of listed companies, boost share turnover and attract new domestic and foreign
investors. The Bahrain Bourse allows GCC firms and GCC citizens to own up to 100
percent of listed Bahraini companies. Non-GCC firms/citizens may own up to 49 percent
of listed Bahraini companies, and 100 percent of foreign companies.
In November 2011, the Central Bank of Bahrain (CBB) announced that the banking
sector is considered sound and stable, despite the ongoing civil & political unrest in
Bahrain and the region. After urging by the CBB, Islamic banks have begun merging to
create stronger entities, enhance competitiveness and allow the sector to overcome the
financial crisis.
In March 2004, as part of an effort to stimulate the insurance industry and reinforce
Bahrain's position as a major insurance center in the Middle East, the Bahrain Monetary
Authority -- now the Central Bank of Bahrain (CBB) -- loosened ownership restrictions.
Insurance firms, which were previously required to have at least 51 percent Bahrainiownership,
are now permitted to operate with 100 percent foreign-ownership. The CBB
is holding consultations on further reform in areas such as captive insurance, solvency,
business conduct, risk management and financial crime, enforcement, BMA reporting
and public disclosure, intermediaries, and Islamic insurance. Taxation and import laws
apply equally to Bahraini and foreign-owned companies, and foreign investors must
comply with the same requirements and legislation as local firms.
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