BizBahrain Magazine July-August 2018

Interview | EDB Bahrain
but we are confident that Bahrain will
maintain its competitiveness with the
launch of VAT. First of all, VAT is a GCC
wide initiative. So, all GCC countries
are implementing VAT. What we will
ensure, by being involved with all the key
stakeholders, is that the VAT framework
maintains Bahrain’s competitiveness
from a cost perspective and also from
an administrative process perspective. I
think KSA and UAE have taken the lead on
rolling out VAT in the GCC and there is a
lot for us to learn from them to make sure
that we incorporate that learning in the
Bahrain framework.
We look at the quality of
the industrial parks and
logistics zones offered in
Bahrain and I have to say
its world class.
Are there any additional regulatory
measures that could be introduced by the
government to ease doing business in
Bahrain?
I think we have a strong foundation,
in the form of business ownership
regulations or the employment regulations
with LMRA and all the flexibilities we offer
to companies of either complying with
the requirements or the parallel policies of
hiring whomever you want while paying
an additional fee.
We just need to continue to streamline
the registration process because that is
very important to make it more efficient
and easier for everyone. There is a lot
happening with that space, with all the
stakeholders involved including EDB to
streamline the process and ensure that we
have a system that is as good as the most
efficient systems in the world, such as
Singapore or Hong Kong.
We also need to fast track the process
of launching rules and regulations to
support the digitalization of the Bahrain
economy. I think this is the direction that
the world is heading towards and there is
a requirement that we modernize existing
policies and regulations and introduce
technology in as many aspects of what we
work on and how the government works
as well, how the government interacts
with investors and the infrastructure
that needs to be put in place to be able to
compete in the digital world. What comes
along with that is obviously preparing the
people for it, making sure that students
are prepared to take on jobs that involve
technology, and acquire skills required in
the digital age.
What are some of the manufacturing units
and projects that you foresee leading the
growth of the national economy in the
near term?
If you look at the key focus areas for
us, there is obviously a clear focus on
the FMCG sector and that will continue
to be the case. The demand for these
industries is reflected by the growth of
the population and the need for consumer
goods. Along side FMCG there is also
a growing focus on packaging, which
supports the FMCG industry. Then there
are different areas within logistics and
manufacturing that we are focused on.
Within manufacturing, the government
has made a big commitment towards
Alba’s Line 6 expansion, and the real
value of this project is not the direct
impact of investment or job opportunities,
but the ripple effect of the downstream
opportunities.
On the industrial services side
also, there is a lot of interest on the big
upstream investments happening in
Bahrain, including Alba’s expansion,
and BAPCO’s refinery expansion. That
will drive a lot of need for industrial
services. That’s why it’s a key focus for
us to capture as much as possible in that
space on the back of these two major
upstream projects. We have already seen
the results. For example, around Alba we
managed to attract several companies that
have chosen Bahrain to be a permanent
regional base and also there is more to be
announced over the next six months.
Around BAPCO’s expansion, there
will be several announcements between
now and mid next year. We’re working
on a number of projects again on the
same basis for several companies to
establish regional bases, not only to
support the local market. Apart from
these we have seen interest from various
investors in different fields, for example,
pharmaceuticals. Part of that has to do
with the quality of the national health care
regulatory authority.
Then there is more interest in the
space of automation and renewable
energy and their support industries.
Renewable energy is something
new to the region and Bahrain more
specifically, and we think we will see more
developments over the next 12 months.
The government has already announced a
number of initiatives and tenders as well,
which we are closely monitoring.
Can you tell us a little about Bahrain’s
plans to establish a USD $100 million Fund
of Funds to open up new funding avenues
for innovative young businesses?
I think the concept of the Fund of
Funds extends beyond any specific
sector. It’s a platform that helps kickstart
Bahrain’s focus on entrepreneurship
alongside all the other key sectors Bahrain
is promoting, which is manufacturing,
logistics, financial services, tourism and
leisure and ICT.
If we want to expand and promote
entrepreneurship, the idea was to create
a fund that supports venture capitals,
supports people that are going into
entrepreneurship opportunities across
the board. Obviously, the fund is focused
on opportunities that involve technology
across all sectors. This is a way of making
sure that people are aligning themselves
with the wider focus of transforming
Bahrain into a digital economy.
Is there anything else that you would like
to add?
The more we highlight Bahrain’s
value proposition, the more it sticks with
people, so I would like to point out some
key strengths - 100% ownership, Zero
taxation, flexible employment regulations,
cost effectiveness - be it the cost of
doing business or the cost of living, the
quality of the workforce, the quality of the
infrastructure. And over and above this
from my perspective, is the 6 dimension.
If we have 5 key advantages our 6th
advantage is the support from Bahrain
EDB and all the other key stakeholders.
The integrated support from the key
stakeholders to make things happen
makes a big difference for the companies
that we brought to Bahrain. It is clear that
everyone has to pull together to make it
happen. Team Bahrain is not highlighted
enough. It is important to remember that
the team works in unison to make things
work more efficiently and effectively.
July-August 2018
19