Annual Report 2009

Building
Our Future

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08 09

Bahrain Economic Development Board

Contents

2 Profile
3 Mission, Vision
4 Decade of Progress
8 Chairman’s Statement
10 Chief Executive’s Statement
12 Board of Directors
14 EDB Executive Management
16 State of the Economy
22 Bahrain - Among the best to Live, Work and do Business
26 Testimonials
28 Our Growing Kingdom
34 Transport into the Future
36 International Presence
40 One Vision, One Message
42 Converting the Local into International
44 Attracting New Investments
48 The Way Forward

Bahrain Economic Development Board

P.O. Box 11299, Manama, Kingdom of Bahrain
T: +973 17 58 99 99, F: +973 17 58 99 00
www.bahrainedb.com
His Royal Highness, Prince His Majesty King His Royal Highness, Prince
Khalifa bin Salman Hamad bin Isa Salman bin Hamad
Al Khalifa Al Khalifa Al Khalifa

The Prime Minister of The King of the Kingdom The Crown Prince
the Kingdom of Bahrain of Bahrain & Deputy Supreme Commander
2 Profile
Annual Report 2009
Bahrain Economic Development Board

The Bahrain EDB is chaired by His Royal Highness the Crown Prince,
Salman bin Hamad Al Khalifa, and its Board of Directors includes
government ministers and as well as industry executives, enabling
public and private sectors to work closely together.
The role of the EDB is to provide leadership by uniting all of the
Kingdom’s Stakeholders through a unified vision, and to develop key
strategies for sustainable growth. The EDB also acts as a facilitator,
helping all of Bahrain’s stakeholders to understand and adopt the
changes necessary for progress. In addition, the EDB provides sound
project management to ensure that all agreed reform initiatives are
implemented in an effective and timely manner.
The EDB is also responsible for attracting inward investment into
Bahrain, and is focusing on six target economic sectors in which the
Kingdom offers significant strengths. These are financial services,
downstream industries, tourism, business services, logistics and
health, education and training

The Bahrain Economic

Development Board is a dynamic
public agency with an overall
responsibility for formulating
and overseeing the economic
development strategy of Bahrain,
and for creating the right climate
to attract direct investments into
the Kingdom.
Vision and Mission 3

Vision
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.

Mission
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.
 Decade of
4 Progress
Annual Report 2009
Bahrain Economic Development Board

Since its inception in the year 2000, the Economic Development Board
has been at the heart of reform in Bahrain. Working closely with both the
public and private sectors, the EDB aims to improve economic opportunities
within the country, and remove barriers to growth. It is also responsible for
marketing and promoting Bahrain internationally as a business destination.
The milestones below illustrate EDB’s eventful journey and its considerable
achievements.

2002 2005
• Establishment of the Economic Development Board EDB • Decree issued entrusting EDB with the mandate of
under the chairmanship of HRH Prince Salman bin Hamad strategic economic planning
Al Khalifa, the Crown Prince
• Industrial Policy for the Kingdom of Bahrain completed
• Liberalization of the Telecom Market and the
• Launch of Bahrain’s Economic Reform Program
establishment of the Telecommunications Regulatory
Authority • Started the first privatized Independent Power Producer
(IPP) in Bahrain with the establishment of AlEzzel Power
• Bahrain Monetary Agency (now the Central Bank of
Station
Bahrain) became single, unified regulator for financial
sector

2003
• The Establishment of Bahrain Tender Board
2004
• Free Trade Agreement signed with the USA
• Organizing and hosting the first Formula 1 Grand Prix in
the Middle East
• Launch of Labour Market Reform
2006
• Establishment of Bahrain Mumtalakat Holding Company
• Establishment of Labour Market Regulatory Authority
(LMRA) and Tamkeen
• National Education Reform initiative created and board
established
• Launch of the first annual Spring of Culture
• Bahrain Development Bank increases its capital to BD
50million to offer more services and loans to SMEs
• Development of Land Master Plan
• Key reforms implemented to simplify the process of
starting a business in Bahrain
 5

1 2 3

4 5 6

1. Telecommunications Regulatory Authority 2. Formula 1 Grand Prix

3. Mumtalakat Holding Company 4. Labour Market Regulatory Authority (LMRA)
5. Tamkeen 6. Spring of Culture
 Decade of
6 Progress
Annual Report 2009
Bahrain Economic Development Board

BAHRAIN
TEACHERS COLLEGE

1 2 3

4 5 6

1. Bahrain Economic Vision 2030 2. Bahrain Teachers College

3. Quality Assurance Authority for Education & Training 4. National Economic Strategy
5. Business Friendly 6. Bahrain Polytechnic
 7

As the world continues to evolve, we in Bahrain will continue with our

progressive policies by remaining steadfast in our commitment to secure
Bahrain’s competitiveness as a leading investment destination. Bahrain
will continue to focus on being a hub for investors, dedicating our efforts
towards development and progress for the benefit of our future generations.

2006
• Development of Strategy for MICE industry in partnership
with Min. Industry and Commerce and Bahrain Exhibition
and Convention Authority (BECA).
• Development of Tourism Strategy Plan in coordination with
Ministry of Culture and Information.
• Establishment of the Higher Privitisation Council to
propose and implement privitisation strategy
• Launch of Bahrain’s Education Reform Program
2008
• Launch of Bahrain’s Economic Vision 2030
• Establishment of Bahrain Teacher’s College and Bahrain
Polytechnic receive first students; QAAET undertakes
first formal reviews of schools, vocational institutes and
universities.
• Initiation of reforms in regulating and upgrading taxi
services and establishment of the Arabian Taxi Company
• Launch of Bahrain Business Friendly Marketing Campaign

2007
• Launch of a systematic government-wide strategic
planning process
• Development a syndication of Bahrain’ Economic Vision
• Creation of the MENA-OECD Centre for Investment
• Development of comprehensive marketing communications
strategy to market Bahrain globally as a business friendly
destination.
2009
• Development of the National Economic Strategy 2009-2014
in corporation with all ministries and government agencies
• Initiated work with all Government Entities to develop
implementation plans for the strategic initiatives in the
NES
• Establishment of the National Authority for the Regulation
of Health Professions and Services
• Comprehensive School and Ministry Improvement
Programs started
• EDB supported the Ministry of Justice to improve judicial
dispute resolution and efficiency of civil and commercial
courts and judicial procedures
 Chairman’s
8 Statement
Annual Report 2009
Bahrain Economic Development Board

In 2009, we also took another

essential step, which was to link the
vision with the plans and programs
of the Kingdom’s institutions and
agencies. This unification served to
align our shared efforts by directing
all of these institutions and agencies
towards the effective and efficient
implementation of the Vision 2030. This
alignment is what will ultimately
enable us to transform the vision
into reality – for the direct benefit
of our citizens.

H.R.H Prince Salman Bin Hamad Al Khalifa

Crown Prince
Chairman of the Economic Development Board
 9

In 2009 the Kingdom of Bahrain celebrated the 10th which continues to encourage the flow of investment into
anniversary of His Majesty King Hamad Bin Isa Al Khalifa’s Bahrain, with the ultimate aim of creating lucrative job
accession. This marked a period of great transformation, opportunities for young Bahrainis.
which heralded the beginning of a new era of democratic
These are just some of the positive developments we have
reforms including the launch of the Economic Development
achieved over the past year, all of which are the outcome
Board and Bahrain’s Economic Vision 2030. Today we
of the strong economic foundation Bahrain has built. This
celebrate the achievements that these reforms have brought
foundation is what will enable us to build a secure future,
about – a sustained period of dynamic growth supported
by maintaining the Kingdom’s place as a global and regional
by the introduction of development programs and landmark
investment hub. The initiatives we have implemented provide
reforms across politics, economy and society in the Kingdom
investors, companies and talent an attractive platform to
of Bahrain.
launch new ideas and grow their businesses, which ultimately
The Economic Development Board’s success in formulating benefit our citizens.
a long-term economic vision – the Vision 2030 – was an
As the world continues to evolve, we in Bahrain will continue
important first step towards achieving our goal of encouraging
with our progressive policies by remaining steadfast in our
long-term sustainable economic growth. In 2009, we also
commitment to secure Bahrain’s competitiveness as a leading
took another essential step, which was to link the vision with
investment destination. Bahrain will continue to focus on
the plans and programs of the Kingdom’s institutions and
being a hub for investors, dedicating our efforts towards
agencies. This unification served to align our shared efforts
development and progress for the benefit of our future
by directing all of these institutions and agencies towards the
generations.
effective and efficient implementation of the Vision 2030. This
alignment is what will ultimately enable us to transform vision We look forward to 2010 with an even greater vision.
into reality – for the direct benefit of our citizens. The Economic Development Board is committed to a
comprehensive range of important initiatives and projects
At the time the Vision was launched we were faced with a
– from strategy to implementation. With this in mind, we
key challenge when the world witnessed an unprecedented
embrace the active and positive engagement of the Bahraini
international financial crisis.
people, including public institutions, private sectors and civil
As a result, many economies across the globe were tested society, in order to achieve this common vision.
more than any other time in recent history.
We will always dedicate ourselves to building a prosperous
However, in Bahrain our steady adherence to our national and promising future for Bahrain.
economic strategy, and our tried-and-tested regulatory
system, not only enabled Bahrain to withstand much of
the crisis, but also ensures that we build a better future for
Bahrain.
And so, despite the adverse effects of the global economic
crisis in 2009, the Kingdom of Bahrain strengthened Prince Salman Bin Hamad Al Khalifa
its competitive position on the world’s economic map, Crown Prince
reaffirming to investors our capability and commitment Chairman of the Economic Development Board
to ensuring Bahrain’s position as a reliable and secure
investment destination. Reinforcing this point are many
key economic indicators as well as several large initiatives
mapped out in the National Economic Strategy, which are
now underway. We will also continue to build the foundation
 Chief Executive’s
10 Statement
Annual Report 2009
Bahrain Economic Development Board

EDB has established frameworks

and plans to stimulate economic
growth through improved productivity,
enhanced skills, and support for key
economic sectors which comprise part of
the export strategy within Bahrain’s
Economic Vision 2030.

70%
the growth of GDP

Sh. Mohammed bin Essa Al Khalifa

Chief Executive

2009 was notable for starting the implementation of Bahrain’s
Economic Vision 2030, and in support of this vision, the roll-
out of the National Economic Strategy 2009-2014. In order to
assure the successful implementation process, the Economic
Development Board took significant measures to align and
coordinate the objectives and actions of all ministries and
government agencies. Importantly, the EDB also took further
steps to work more closely with the private sector in order
to improve the investment and business environment for
Bahrain, in light of the vital role that the private sector plays
in stimulating economic growth, establishing new industries,
and encouraging the growth of higher value-added services.
The Economic Vision 2030 provides guidance for both the
public and private sectors. The Kingdom was first in the
region to address the realities of the post-oil era, and its
economy has become by far the most diversified in the Gulf
region, where oil accounts for only 13% of GDP, lower than
that of financial services or manufacturing. The EDB is tasked
with ensuring that the private sector remains the engine of
growth for our economy, supporting continued diversification.
Through the creation of more well-paid jobs for Bahrainis, this
strategy will ultimately lead to improved living standards for
our citizens.
Indeed the economy of Bahrain has made great progress
in reducing its dependency on oil, as non-oil products and
services now account for more than two-thirds of the total
exports of the Kingdom. During the last decade the Kingdom
succeeded in achieving sizeable accomplishments in terms of
economic development: GDP grew by more than 70%; exports
increased by 116%; average Bahraini wages increased by
25%; and Bahraini employment increased by 39%.
Bahrain will only fulfill its future aspirations if each segment of
society lives up to its respective responsibilities, and plays its
own critical role in this process of growth. Both the private
and public sectors, including state-owned entities, will need
to improve productivity and enhance the quality of their
products and services to international standards. In support
of this, the EDB has established frameworks and plans to
stimulate economic growth through improved productivity,
enhanced skills, and support for key economic sectors
which comprise part of the export strategy within Bahrain’s
Economic Vision 2030. Early indications suggest that we are
heading to the right direction.
In coordination with other government agencies, the
Economic Development Board has given particular attention
to developing the capabilities of government-owned
companies. We will ensure that these entities can compete
internationally, by stimulating new ventures to provide high
quality services and value-added products, and we will do so
in a way which will provide rewarding jobs for Bahrainis.
Transitioning the economy, which was based on oil, towards
a diversified economy requires courageous initiatives such as
those led by His Royal Highness Prince Salman Bin Hamad
Al Khalifa, the Crown Prince and Chairman of the Economic
Development Board. The first of these initiatives was labor
11
market reform - to create the right conditions for stimulating
job creation for Bahrainis. Equally instrumental to this
process was the coordinated development of our education
and training systems.
Due to Bahrain’s transparency, trusted regulatory
environment and effective governance, our economy was
able to withstand the financial crisis better than many other
major global economies. This model of stability is the key to
bringing us the sustainable growth we seek. If the private
sector maintains these principles of steady foundations
and stable growth, Bahrain will continue to enjoy a strong,
sustainable economy led by a competitive private sector.
In 2009 the Economic Development Board continued the
international promotion and marketing of the Kingdom of
Bahrain. We ensured a distinct presence amongst major
global economic events for international leaders and decision
makers, which helped to contribute towards a positive flow of
foreign investments into the Kingdom and of companies who
have chosen Bahrain as their preferred base in the Gulf.
In 2009, the Kingdom of Bahrain witnessed many
achievements related to the development and diversification
of the economy. These included the inauguration of Khalifa
Bin Salman Port, the launch of Salman Industrial City and
Bahrain Logistic Zone, all of which mark the Kingdom’s
advancements towards its goals of enhancing the productive
capacity of the industrial sector, export development, trade,
and improving Business Services infrastructure to help
remove bottlenecks to economic growth.
We are focused on the strategic economic initiatives that are
also given priority to: (1) stimulate growth in the economy by
enhancing productivity and skills, (2) diversity and build the
economy by focusing on existing high-potential sectors and
(3) transform the economy in the longer-term by capturing
emerging opportunities.
We will continue our work in helping young Bahrainis to
develop their capabilities and to achieve their goals. We will
equip them to reach the levels of their skill and productivity to
match the best international standards.
In spite of its short history, the Economic Development Board
has made big strides. We can be proud of our achievements.
Everything we do will always be dedicated to the service of
Bahrain and its people.
Sh. Mohammed bin Essa Al Khalifa
Chief Executive
 Board of
12 Directors
Annual Report 2009
Bahrain Economic Development Board

Chairman
His Royal Highness, Prince
Salman bin Hamad Al Khalifa
Crown Prince & Deputy Supreme Commander

Members
H.H. Sh. Mohammed bin Mubarak Al Khalifa H.E. Sh. Ahmed bin Attiyatallah Al Khalifa
Deputy Prime Minister Minister of Cabinet Affairs
H.H. Sh. Ali bin Khalifa Al Khalifa H.E. Sh. Khalid bin Ali Al Khalifa
Deputy Prime Minister Minister of Justice
H.H. Sh. Abdulla bin Hamad Al Khalifa H.E. Dr. Faisal bin Yaqoob Al Hamar
Governer of the Southern District Minister of Health
President of the General Commission for Protection of
H.E. Dr. Juma Al Kaabi
Marine Resources, Wildlife and Environment
Minister of Municipality & Agriculture
H.H. Sh. Nasser bin Hamad Al Khalifa
H.E. Sh. Mai bint Mohammed Al Khalifa
Chairman of the Royal Charity Organisation
Minister of Culture & Information
H.E. Jawad bin Salem Al Arrayed
H.E. Dr. Essam Abdulla Fakhro
Deputy Prime Minister
Chairman, Bahrain Chamber of Commerce & Industry
H.E. Sh. Khalid bin Abdulla Al Khalifa
Mr. Jawad Habib Jawad
Minister of Prime Minister’s Court
Senior Partner, Jawad Habib Group
H.E. Dr. Hassan bin Abdulla Fakhroo
Mr. Sameer Abdulla Nass
Minister of Industry & Commerce
Chief Executive, Nass Group
H.E. Fahmi bin Ali Al Jawoder
Mr. Atif Ahmed Abdul Malek
Minister of Works
Chief Executive, Arcapita Bank
H.E. Sh. Ebrahim bin Khalifa Al Khalifa
Mrs. Elham Abdulla Hassan
Minister of Housing
Country Senior Partner, PricewaterhouseCoopers
H.E. Sh. Ahmed bin Mohammed Al Khalifa
Mr. Talal Ali Al Zain
Minister of Finance
Chief Executive Officer, Mumtalakat Holding
H.E. Dr. Majed bin Ali Al Nuaimi Company
Minister of Education
Mr. Adel Hussain Al Maskati
H.E. Dr. Majeed bin Mohsen Al Alawi Managing Director, Al Maskati Commercial Services
Minister of Labour
Mr. Jalal Ahmed Al Aali
H.E. Dr. Abdul Hussain bin Ali Mirza Chief Executive, Ahmed Mansoor Al Aali Co.
Minister of Oil & Gas Affairs
Mr. Tariq Jalil Al Saffar
H.E. Dr. Fatima bint Mohammed Al Balooshi Chief Executive Officer, Harbour Investment Holding
Minister of Social Development
H.E. Rasheed Mohammed Al Meraj
Governor, Central Bank of Bahrain
13
 EDB
14 Executive Management
Annual Report 2009
Bahrain Economic Development Board

Shaikh Mohammed bin Essa Al Khalifa Kamal Ahmed

Chief Executive Chief Operating Officer
 15

EDB 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.
 State of the
16 Economy
Annual Report 2009
Bahrain Economic Development Board

Bahrain is ranked among

the top 20 nations in
the World Bank’s Doing
Business Report, and the
Heritage Foundation Index
of Economic Freedom, and
scores well in the World
Economic Forum’s Global
Competitiveness Report.

The economic slowdown which became evident in
Bahrain through 2009 followed five years of persistent,
firm and well balanced output growth.
Those years of exceptional prosperity confirmed
the value of bold economic reforms in underpinning
economic success, and in strengthening the resilience
of the Bahrain economy when challenged by
deterioration in the global economy.
There is no doubt that rising oil prices in the five
years to 2008 helped, as did a strong global economy
and a competitive exchange rate as the US dollar
depreciated. Those five years had seen the biggest
expansion in the world output in human history.
Global trade and global capital flows had never been
greater. But it is also true that economic reform within
Bahrain permitted the Kingdom to expand potential
output and take advantage of favorable regional and
global developments.
These reforms built on earlier foundations and
included the corporatization and privatization of
government businesses, fighting of corruption in
government contracts and in the civil service through
the National Audit Court, the Tender Board and
removal of impediments to foreign investment in
Bahrain, accession to a GCC customs union based
on low tariffs, signing of a free trade agreement
with the United States, reforms in the labor market,
opening up of the telecommunications sector and
the establishment of a telecommunications market
regulator, and improvements to public and private
education.
17

18
Annual Report 2009
Bahrain Economic Development Board
As a result of the reforms, Bahrain was ranked among the
top 20 nations in the World Bank’s Doing Business Report
and the Heritage Foundation Index of Economic Freedom,
and it scored well in the World Economic Forum’s Global
Competitiveness Report.
Because of these reforms and favorable trends in the global
economy, Bahrain’s production of goods and services
expanded by 40% in five years from 2003 to 2008.
Overall employment increased by three quarters and the
number of Bahrainis with jobs increased by over one third.
The Kingdom’s economy diversified. Output in the finance
sector nearly doubled. By 2008 the finance sector accounted
for over one quarter of output, compared to less than a fifth
five years earlier.
Output also increased in education services, tourism,
manufacturing and logistics. Manufacturing output increased
80% over the period, the output of private education services
nearly doubled, and the output of private health services
more than doubled. The output of hotels and restaurants – a
proxy for tourism services – more than doubled, and the
annual number of foreign visitors increased by 80%.
While it remained a vital component of Bahrain’s economy,
oil output was unchanged in the period. Employment in
the oil and gas sector (including refining) increased, but
accounted for less than 1% of jobs in the Kingdom.
As the economy became more open, both exports and
imports increased. Over the period exports increased by
166% in value and doubled in volume. By 2008, Bahrain was
the most open economy measured by trade share in the
GCC, and one of the most open economies in the world. In
2008 Bahrain’s exports plus imports, a common measure of
trade intensity, totaled 128% of GDP.
40%
Because of the reforms and favorable trends in the
global economy, Bahrain’s production of goods
and services expanded by 40% in the five years
from 2003 to 2008.
State of the
Economy
Though oil revenues rose 172% over the five years to
2008, total oil profit rose 150% and total wages and salary
income nearly doubled (all in nominal terms), the Kingdom
managed prosperity wisely. In many other economies
household consumption absorbed higher incomes. In Bahrain
consumption declined as a share of GDP from 65% to 59%
over the five years.
In many other economies government spending rose as fast
as or faster than government revenues. In Bahrain much of
the additional revenue was saved in annual fiscal surpluses.
National saving increased from 39% of GDP in 2004 to 52% in
2008. Government debt declined from 37% of GDP in 2003 to
15% of GDP in 2008.
Over the five years both private and public investment rose
strongly. The volume of public investment rose 50% and
the volume of private investment 135%. Even so, savings
rose faster, so that Bahrain’s current account surplus
strengthened.
The increasing distress of the US and European finance
sectors from early 2007, culminating in the collapse of
Lehman Brothers and global financial panic in the last quarter
of 2008, terminated the biggest global economic expansion
in history. Europe, Japan and North America entered
recessions. Global output growth slowed dramatically.
The US and European unemployment rates rose to over 10%.
Commodity prices tumbled, with the benchmark oil price
falling from a peak of over $140 a barrel in August 2008 to
under $30 a barrel in March 2009.
Bahrain’s finance sector had avoided most of the excesses
which afflicted Europe and North America, but there was an
inevitable impact on the Kingdom.
80%
Much of the strength in the Bahrain economy
through 2009 came from manufacturing,
which increased output by around 80% over
the period.

The global crisis saw a sudden reluctance to extend debt, a
global down turn in financial sector activity, and increasing
difficulty in debt funded business sectors including property
development. CIO data shows that the construction sector
contracted by 9% over the four quarters to the third quarter
of 2009, while the finance sector contracted 2.5% over the
same period.
In Bahrain, monetary policy settings became more
accommodating as the global recession deepened. The
interest rate cuts in Bahrain were largely in line with US
Federal Reserve settings.
The policy change was necessary to support the US dollar
peg for the Bahraini Dinar, but was also helpful in cushioning
Bahrain from the severity of the global recession. Fiscal
policy also switched to a more expansionary stance, with the
national budget moving into a deficit after five years of firm
surpluses.
The deficit was partly due to increased public spending as
private development spending faltered, and partly due to
the downturn in revenue as oil prices fell. Bahrain’s export
performance was supported by a small decline in the trade
weighted value of the Bahraini dinar, largely due to the
decline of the US dollar.
Bahrain avoided recession, though growth slipped to around
half the average of the previous five years. The slowdown
was most evident in property development and construction,
which declined through 2009 as expectations of future
demand were cut back and financing became more difficult.
The decline was most marked in the first quarter, and has
since slowed. We expect property to continue to lag through
2010.
128%
In 2008 Bahrain’s exports plus imports, a
common measure of trade intensity, totaled 128%
of GDP.
19
The finance sector, which accounts for more than a quarter of
Bahrain’s output of goods and services, also likely contracted
in 2009. The decline was very mild, however, and was
entirely accounted for by weakness in offshore banking in
the first half of 2009. By the third quarter and into the fourth
quarter signs of stabilisation were also apparent in finance.
The downturn in offshore investment banking was related to
the general downturn in property development through the
GCC region.
The domestically focused retail banking sector held up well,
so did the insurance sector. Petroleum output dropped
sharply in the first quarter for operational reasons but
picked up over the remaining three quarters. Much of the
strength in the Bahrain economy through 2009 came from
manufacturing, which increased output by around 8%
through the year. Wholesale and retail trade were also firm,
as was the hotel and restaurant sector.
Import growth remained buoyant in major Bahrain export
markets, particularly Saudi Arabia. Nonetheless the disarray
in the world economy at the end of 2008 hit Bahrain’s
exports, both through the decline in oil prices and the fall in
trade volumes.
In US dollar terms Bahrain exports plummeted in January
2009 from an all time high in December of 2008, and
bottomed out in February before slowly gaining over the
remainder of the year. Even so, the third quarter the level of
exports was still less than it had been two years earlier.
Though output growth slowed markedly, employment in
Bahrain rose through 2009. All of the increase was in non-
Bahraini employment. Primarily because public service
employment declined a little and the finance sector was
under pressure, Bahraini employment declined. The fall was
modest, however, and total Bahraini employment at the end
of 2009 was not far off an all time peak.
166%
As the economy became more open, both exports
and imports increased. Over the period exports
increased by 166% in value and doubled in volume.
 State of the
20 Economy
Annual Report 2009
Bahrain Economic Development Board

After the deep global economic downturn, a slow but durable The relatively mild slowdown in Bahrain through 2009
economic recovery became evident by the end of 2009. confirmed the durability of its long record of economic
development. The sources of its strength remain robust. Over
Given the weight of offshore property development in the
the last decade the average pace of annual economic growth
portfolio of the wholesale banking sector based in Bahrain,
was 6%. Bahrain saving is high as a share of GDP, as is total
the EDB expects the finance sector to recover only slowly
investment. There is a well developed finance sector and
from the downturn. So too property development will likely
adequate local banking and financial intermediation. There
remain flat overall through 2010 and recover only slowly
are no substantial tariff barriers against imports.
through 2011 and 2012.
There are very few economic distortions or business
On the other hand, there is considerable investment planned
impediments imposed by Bahrain taxes, which are minimal.
for the oil and gas sector, regional tourism to Bahrain
Bahrain has long fixed the dinar against the US dollar, a
remains buoyant, manufacturing continues to perform
policy which in recent years has implied both relatively low
well, and services such as logistics, education and health
short term interest rates and some increase in currency
are expanding. Looked at from the spending side, the EDB
competitiveness in respect of Japan, China, and Europe.
expects household consumption to continue to strengthen
While there is substantial room for improvement in
over the forecast period, while investment spending
educational standards, Bahrain has high rates of literacy in
continues to moderate reflecting the downturn in property
both Arabic and English and a high rate of participation in
development.
colleges and universities. Women participate in education
Exports are expected to strengthen in response to a more without discrimination.
competitive exchange rate and higher oil prices, and as
Though at a much lower rate than men, women participate
additional capacity in aluminium and petroleum refining may
extensively in the workforce. Bahrainis also participate in the
become available. Import growth will moderate, reflecting the
workforce to a much higher degree than is usual for the local
impact of slower investment spending on capital equipment
population in other GCC economies. Bahrainis for example
imports and the replacement of some imported oil by higher
account for four fifths of the workforce in the finance,
local production.
aluminum and oil and gas sectors, the three of the biggest
Global inflation has remained subdued, and we expect this commercial activities in the Kingdom – all of which require
to continue through 2010. In 2009 consumer price inflation in high levels of education, training and skill
Bahrain was a little less than 2% through the year. We do not
expect any substantial acceleration through 2010.
Overall the EDB expects output growth to pick up to a little
over 4% in 2010 and reach 5.5% in 2012.
The forecasts are shown in the table below.

2008 2009 2010 2011 2012 2013 2014 2015

GDP Constant: 2001 (BD mn) 4,734 4,905 5,125 5,366 5,660 6,066 6,417 6,879
Growth % 6.3 3.2 4.0 4.7 5.5 6.1 6.8 7.2
GDP Current (BD mn) 8,235 7,692 8,380 9,063 9,586 10,240 11,011 11,865
Growth % 18.6 -6.6 8.96 8.2 5.8 6.8 7.5 7.8

4%
Overall the EDB expects output growth
6%
Over the last decade the average pace of annual
to pick up to a little over 4% in 2010 and economic growth was 6%. Bahrain saving is high
reach 5.5% in 2012. as a share of GDP, as is total investment.
 21

Bahrain Performance (graphical format; example below)

Bahrain Development Profile 1999 2008

Population 640,604 1,106,509

Real GDP (BD Million) 2723 4734
Nominal GDP (BD Million) 2489 8235
Nominal GDP per Capita (BD Thousand) 3825.676 7442.325
Accumulated GDP Growth over 10 years 1 49.1% 64.5%
Real GDP Annual Average Growth over 10 years 2
4.6% 6.3%
Total Export (BD Million) 1,644.764 7,112.105
Balance of Payment (BD Million) -35.300 848.600
1 US$ = 0.377 BD

1. For years 1991-1999, and 2000-2008

2. For years 1991-1999, and 2000-2008

80%
1,200.000 1,106.509 Population
1,000.000 Growth
800.000 (1999-2008)
640.604
600.000 Bahrainis accounts for four fifths of the workforce in the
400.000 finance, aluminum and oil and gas sectors
200.000
0
2008 1999

22
Annual Report 2009
Bahrain Economic Development Board
Bahrain enjoys a very high
standard of living with
high personal safety, a well
established health-care system,
excellent infrastructure and
cosmopolitan environment.
Bahrain consistently scores high marks for global and
regional business competitiveness. Performance in
the latest international reports illustrates significant
improvements in the Kingdom’s labour market
practices, healthcare, education and training.
In 2009, Forbes rated Bahrain as the best environment
for business in the Middle East. It surpassed others by
having the least amount of red tape, a pro-business
environment with a favourable tax regime, an open
and well-developed financing system, sophisticated
labour market and a modern, networked infrastructure.
Bahrain’s reputation for stability is further affirmed,
it is named the fifth country in the world with
macroeconomic stability. With its welcoming culture,
Bahrain was ranked as the friendliest country in the
Bahrain - Among the best
to Live, Work and do Business
World by HSBC Bank International Expat Explorer
Survey 2009, Bahrain was also ranked by Heritage
Foundation as the freest economy in the region and
13th in the world.
Bahrain’s economy is well positioned and competitive
in several respects including low taxation, openness
to global trade and financial market development.
Bahrain enjoys a very high standard of living with high
personal safety, a well established health-care system ,
excellent infrastructure and cosmopolitan environment.
The consensus of these independent reports is
testament to the proven measures Bahrain has taken
to encourage further private sector growth, economic
diversification and to create better opportunities for
Bahrainis.
 23

Bahrain consistently scores high marks for global and regional business
competitiveness. Performance in the latest international reports illustrates
significant improvements in the Kingdom’s labour market practices,
healthcare, education and training.

Bahrain Rank

13
th Freest Economy
in the World
World Rank
1 Hong Kong 2 Singapore 3 Australia 4 New Zealand
Source: Heritage Foundation 2010 Index of Economic Freedom

1
st Freest Economy
in the Middle East
Regional Rank
2 Qatar 3 Kuwait 4 Oman 6 United Arab Emirates
Source: Heritage Foundation 2010 Index of Economic Freedom

33
rd Best Countries
For Business
World Rank
1 Denmark 2 United States 3 Canada 4 Singapore
Source: Forbes’ Best Countries for Business 2009 Report

1
st Best Countries
For Business
Regional Rank
1 Jordan 3 Qatar 4 Oman 5 Saudi Arabia
Source: Forbes’ Best Countries for Business 2009 Report

1
st World’s Friendliest
Countries
World Rank
2 Canada 3 Australia 4 Thailand 5 Malaysia
Source: HSBC Bank International Expat Explorer Survey 2009
 Bahrain - Among the best
24 to Live, Work and do Business
Annual Report 2009
Bahrain Economic Development Board

Bahrain Rank

5
th Places with Best
Quality of Life
World Rank
1 Canada 2 Australia 3 Thailand 4 Singapore
Source: HSBC Bank International Expat Explorer Survey 2009

1
st Places with Best
Quality of Life
Middle East & Africa
2 South Africa 3 Saudi Arabia 4 United Arab Emirates 5 Qatar
Source: HSBC Bank International Expat Explorer Survey 2009

1
st World’s Best Labour
Market Regulations
World Rank
2 Uganda 3 United States 4 Hong Kong 5 Bahamas
Source: Economic Freedom of the World Report 2009, Fraser Institute

20
th Economic Freedom
Ratings
World Rank
1 Hong Kong 2 Singapore 3 New Zealand 4 Switzerland
Source: Economic Freedom of the World Report 2009, Fraser Institute

2
nd Economic Freedom
Ratings
Regional Rank
1 United Arab Emirates 3 Kuwait 4 Jordan 5 Oman
Source: Economic Freedom of the World Report 2009, Fraser Institute

4
th Most Favorable
Tax Regime
World Rank
1 Hong Kong 2 United Arab Emirates 3 Ireland 5 Canada
Source: World Economic Forum, Financial Development Report 2009
 25

Bahrain Rank

16
th Most Liberalized Financial Sector
World Rank
1 Austria, Belgium, Denmark, Germany, Ireland, Italy, Netherlands,
Sweden, United Kingdom
Source: World Economic Forum, Financial Development Report 2009

12
th Low Cost Location for
Doing Business
World Rank
1 Singapore 2 Canada 3 Norway 4 United States
Source: World Economic Forum, Financial Development Report 2009

5
th Macroeconomic
Stability
World Rank
1 Brunei Darussalam 2 Algeria 3 Kuwait 4 Libya
Source: World Economic Forum, Global Competitiveness Report 2009-2010

20
th Best Countries for
Doing Business
World Rank
1 Singapore 2 New Zealand 3 Hong Kong 4 United States
Source: World Bank, Doing Business 2010

2
nd Best Countries for
Doing Business
Regional Rank
1 Kingdom of Saudi Arabia 4 United Arab Emirates 5 Qatar 6 Kuwait
Source: World Bank, Doing Business 2010

1
st Bahrain
e-Government Readiness
Rankings
1 GCC Rank, 1 Middle East Rank, 3 Asia Rank, 13 World Rank
Source: United Nations e-Government Readiness Report 2010
26
Annual Report 2009
Bahrain Economic Development Board
“With the establishment
of a premier maintenance
base in Bahrain, we aim to
contribute to the growth
of Bahrain as the region’s
aviation hub. There is a
pro-business environment
in Bahrain, a “can-do”
attitude among the people,
which have enabled the
SIA team to be assimilated
easily and to work well
together with our Bahraini
counterparts.”
Johnny Eng H.K.
General Manager
SIA Engineering
Company Bahrain
Testimonials - BD
“Bahrain’s strategic
location and positive
business climate, offers
exciting long-term
opportunities for our
company to expand its
core business. We look
forward to building on the
reputational goodwill we
enjoy amongst our existing
customers, many of whom
already operate in the Gulf
region, and the experience
we have gained over 30
years of operations.”
K. K. Kuah
CEO & Chairman
MTQ
“Huawei Middle
East Regional HQ is
successfully operating in
Bahrain with more than
400 Huawei staff living
and working here. We do
appreciate EDB initiatives
and enjoying the warm
hospitality of Bahrain. We
would also like to thanks
Bahrain government for
liberal polices and support
extended to us. We love
our new Home.”
Huang Zhibin
General Manager
HUAWEI Technologies
Bahrain S.P.C

“After considering a few
locations for our Middle
East base, we decided to
open our office in Bahrain
based on criteria such as
central location, amenities,
transportation links with
the rest of the region and
the country’s reputation
for possessing a talented
workforce. In the time
that we’ve been here we
have really appreciated the
EDB’s readiness to offer
support and advice.”
Jean-Paul Mollie
Region P resident -
Middle East, South Asia and Africa
Dow Corning
“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
and asset management
in particular. By having
a physical presence in
Bahrain Apex will continue
to lead the development
of the country’s financial
services sector and
significantly contribute
to the establishment of
Bahrain as a leading asset
management centre”
Nicolas Angio
Managing Director
Apex Fund
Services, Bahrain
27
“ Tech Mahindra chose
to open its regional office
in Bahrain largely due to
the immense flexibility
that Bahrain offers in
conducting the IT services
and consulting business
and the close proximity to
a large market like Saudi
Arabia. The icing on the
cake is working with an
organization like EDB
that makes it so easy for a
foreign company to come
in and settle down fast
in Bahrain. EDB makes
the difference in making
Bahrain really business
friendly.”
Krishna Gopal
Vice President
MEA-SAARC (Sales)
& Global Alliances

28
Annual Report 2009
Bahrain Economic Development Board
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.
Realisation of the Economic Vision 2030
and the implementation of the National
Economic Strategy
Responding to increasing global and regional
competition, the Kingdom of Bahrain in 2008 launched
an ambitious program of economic and institutional
reform to take place in the coming decades. In the year
since the Economic Vision 2030 and the accompanying
National Economic Strategy (NES) were adopted by
the Kingdom, much progress has been achieved in
reforming Bahrain’s economy and in increasing the
effectiveness of government agencies.
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
Our Growing
Kingdom
else that the aim of economic growth is an increase
in prosperity and opportunity for each and every
individual.
The Economic Vision 2030 concentrates on three
areas, defining the direction for government, society
and the economy. It is driven by the philosophy
that our society and government must 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.
The National Economic Strategy translates the
aspirations set in the Vision into actionable initiatives
for implementation and it aims to identify the country’s
most important initiatives that will be implemented
over the next four years and outlines actions/measures

needed to achieve those initiatives and assign clear
responsibilities for each action. Moreover, it also illustrates
how government organisations are inter-related and
interdependent in implementing the initiatives.
Of the major reform initiatives identified in the NES, more
than two thirds are being implemented by the different
government entities. Of these more than half were well on
track, and some progress was registered in the remainder.
Less than a third of the total number of initiatives had not yet
begun implementation - often because they were on a longer
timetable and required the completion of other work before
they could begin.
This record of early achievement in a complex and diverse
reform plan affirms the value of the NES as a powerful
strategic planning tool. While the successes have been
more rapid and widespread than expected, there have
also been major challenges in the implementation of some
commitments in the NES.
The NES was recognized to be a living document,
subject to revision and updating as goals were achieved,
unexpected difficulties were encountered, and new issues
arose. However, the 2030 Vision of a Sustainable, Fair and
Competitive Economy will not change. The strategies to
attain that Vision will vary in the light of experience and
changing circumstances.
In line with the two year budget periods 2011 – 2014 for
the country, the NES will need reviewing and revising. The
first of these biannual reviews is scheduled to take place in
2010. This will be done to ensure that the NES initiatives
are still relevant and up to date with economic and fiscal
developments, and that that the State Budget is linked to
the national priorities identified in the NES. The revision of
the NES will also take into account the global and regional
changing circumstances witnessed in 2009, which might
impact the relevance of some initiatives. To that end, the
EDB will work with relevant stakeholders to ensure that the
revision of the National Economic Strategy will be aligned
with the State Budget, and the four year strategic plans of
Ministries and Government Agencies.
This revision seizes the opportunity to align the NES
planning process with the formulation of the government
budget. The two processes share a common set of reform
and development themes, a common set of economic
assumptions, and a common set of spending and revenue
disciplines. While the rolling four year planning time frame
of the NES is longer than the two year fiscal framework,
all projected NES spending for 2011 and 2012 will be
coordinated with spending targets for agencies within the
Budget process. The 2011-2012 Budget and the revision of
the NES will be developed concurrently.
29
Public Sector Reform
The Kingdom of Bahrain is one of the first countries in the
region to commence the implementation of comprehensive
plans for public sector reform. The work began on
implementing these reforms during the last few years, and
has included various reforms in the labor market, economic,
and education, as well as reforms to the health and judicial
systems. Considerable progress in the liberalization of
markets, including the telecommunication sector, power
generation, and health care services were also an outcome of
the earlier reforms. This coincided with the provision by the
government of strong incentives for investment, including
easing restrictions on foreign ownership and access to
capital, which contributed to the strong economic growth
Bahrain has witnessed during the last five years.
The global economic downturn and its impact on the
region as a whole has had a limited effect on Bahrain. It
has, however, led to reviewing and rescheduling of some
of the initiatives in the National Economic Strategy. This
rescheduling will not lead to any deviation from the overall
thrust of the National Economic Strategy, but some initiatives
are being reviewed in light of the changing conditions in the
region and the world.
In 2009, which was the first year for implementing the
initiatives detailed in the National Economic Strategy, the
Economic Development Board focused on disseminating
and spreading the concepts and initiatives of the National
Economic Strategy (2009 – 2014) to ministries, institutions,
and government agencies in order to prepare the formulation
of operational plans for implementation in the next stage. The
EDB worked with most ministries and government agencies
to commence the implementation of these initiatives during
the year, and provided them with various types of support.
A total of more than 35 Implementation Plans covering
areas in health, public sector human resource management,
infrastructure, regulatory environment, education and others
were completed in the Government and Social sections
of the National Economic Strategy. Partnerships and clear
working arrangements were developed with all relevant
Government entities to further progress the follow up of
all Implementation Plans as well as finalize the method of
reporting to the EDB Executive Committee.
At year’s end most Government Ministries and Institutions
had completed their Implementation Plans for several key
initiatives, with the remainder to be completed during
the first quarter of 2010. This achievement has set a good
basis for the next phase of Implementation of the National
Economic Strategy, which should see clear progress on the
actual Implementation of all these initiatives.

30
Annual Report 2009
Bahrain Economic Development Board
The EDB has also developed a web-based Reporting tool
which is to be used by all Ministries and Government
agencies to report on progress of implementation. Below are
examples of a number of key accomplishments that were
achieved by Ministries during 2009:
• A partnership was formed between the Quality
Assurance Authority for Education and Training and the
Ministry of Labour and Tamkeen, in order to ensure that
in making licensing or funding decisions, proper attention
is paid to the Authority’s reports.
• The collective efforts of EDB with Ministry of
Municipalities and Agricultural Affairs, Ministry of
Works, Ministry of Housing and the Electricity and Water
Authority resulted in the development of a detailed Village
revitalization implementation plan. The plan addresses
the topic of village revitalization comprehensively. The
main highlights of the plan were a unified methodology
for defining villages and village revitalization. The other
feature was introducing the concept of centralized budget
and action plan for a cross sectoral initiative.
• An integrated action plan was prepared to create and
establish the National Authority for Organizing Health
Professions and Services.
• The Ministry of Housing adopted a strategy to involve
the private sector in the implementation of the housing
initiatives.
• The Bahrain Chamber for Dispute Resolution was
established.
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 Royal Highness the Crown Prince, and it
has been a core area 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.H. 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 within the education
system and from the private sector.
Our Growing
Kingdom
During 2009 the original education reforms witnessed
consolidation with the Quality Assurance Authority for
Education & Training (QAAET), the Bahrain Teachers
College and the Bahrain Polytechnic becoming fully-fledged
and operational and the extension of the reform program into
new and important areas.
Also this year, the implementation of the education initiatives
within the National Economic Strategy commenced, with the
EDB working closely with both the University of Bahrain and
the Bahrain Training Institute to develop an implementation
plans to promote organisational improvement, negotiating
memoranda of understanding between QAAET and
the Higher Education Council and also with the Higher
Council on Vocational Education to implement vocational
improvement and higher education improvement programs
respectively, and developing implementation plan to promote
greater participation in schooling.
On a similar note a higher education improvement strategy
was developed in association with the Higher Education
Policy Institute in the United Kingdom
National Qualifications Framework Project
Bahrain’s ambitious education reform process received a
boost through an initiative led by the Education Reform
Board, to create a National Qualification Framework for
Bahrain which will help to create a universal language
by which all stakeholders in the vocational and academic
education markets can assess their training standards.
The project will be jointly managed with Tamkeen and an
international partner, the Scottish Qualifications Authority,
over a two year period.
The project seeks to create a framework that will formalize
the descriptions of the various qualification levels, the policy
documents and the quality control accreditation system for
future implementation. The scope also includes linking out
the framework to other meta frameworks internationally
as well as recommending the body that will take over the
actual policy and implementation. The Scottish Qualifications
Authority was selected because of its rich expertise in similar
projects globally.
A National Qualification Framework will help to measure
the multitude of qualifications that exist and also more
importantly create policies that support accreditation of
prior learning. It will also help to bridge the gap between
vocational and academic qualifications and allow more
learning pathways and translation for certifications and
mobility.

School improvement Programme
The school improvement programme (SIP) began in
earnest in September 2008 within 10 pilot schools. These
schools were chosen from all 5 Governorates and provided
a representative sample from all phases of education. A
number of project teams from within the Ministry of
Education were trained on how to implement best practice
in a number of crucial areas including strategic planning,
teaching and learning, self evaluation and the collection,
analysis and use of data to inform improvement. Improving
teaching is central to raising standards in schools and this
has been a major focus. School improvement teams, formed
from senior staff in the pilot schools have received extensive
training in how to engage and motivate students, improve
the level of challenge and build independent learning skills.
The most recent reviews from the QAAET of our first pilot
schools have shown significant improvements.
As the EDB began to understand more about the
complexities of the education system in Bahrain, it tense
became clear that in parallel to our school improvement
program, there needed to be a complementary ministry
improvement program. Consequently 8 project teams were
established in 2009 to improve systemic elements such
as teacher recruitment, data management and managing
the performance of schools. A new structure for support
and accountability has been developed. Key roles such as
the Chief of school and school improvement coaches have
been established and the first cohorts of employees have
been trained. This new structure is a major shift in the
way schools are managed, and is the first significant step in
shifting the locus of control from the ministry to the school,
thus enabling decisions to be taken closer to the point of
impact.
In addition, the EDB is currently refining a new school
improvement agenda which identifies the key initiatives
needed to complete the reform process and enable Bahrain
to have an educational system which, structurally, has the
elements of the world’s best systems. The 10 original pilot
schools from phase 1 of the program have improved greatly
and as more data becomes available, and changes become
embedded, more improvement to schools are expected to
emerge.
31
Quality Assurance Authority for Education & Training
Since its formal launch in 2009, the Quality Assurance
Authority for Education & Training (QAAET) has managed
to achieve a considerable number of its goals. By accurately
assessing the current performance of training and education
in the Kingdom and adopting proven international standards,
while at the same time maintaining Bahrain’s individuality,
the Kingdom is getting closer than ever to realising the 2030
Economic Vision which is strongly focused on education and
training.
The fact that the QAAET was established by Royal Decree
and is managed by the Cabinet emphasises the crucial role it
plays in achieving what is asked of it.
The main four units of the Quality Assurance Authority
(Schools Review, Vocational Review, Higher Education
Review and the National Examinations) have simultaneously
worked to achieve the Authority’s goals. National
examinations were held for grade 3 and grade 6 students and
meticulously evaluated, setting the benchmark to improve
performance and putting in place all the necessary indicators,
mechanisms and guidelines to monitor and review the
quality of this performance.
During last year, the QAAET carried out reviews of the
performance of a number of schools in different stages, as
well as of universities and training institutes.
With regard to schools, the details of their daily work were
reviewed in terms of basic skills, individual differences,
higher-order thinking, behaviour, self-assessment,
communication with parents, attendance and effectiveness
and several other related issues. All these points proved there
are solid foundations to build on and that with determination,
help and enough support, reforms can be achieved.
The Vocational and Higher Education Review Units
examined the quality assurance arrangements of providers
ranging from governance and management through to
teaching and learning and infrastructure. The outcomes of
these reviews, as expressed in the review reports, provide
institutes and universities with a reference point from which
improvement can take place. They also provide the Kingdom
with a baseline from which future developments in these
sectors can be benchmarked.

32
Annual Report 2009
Bahrain Economic Development Board
Bahrain Polytechnic
Bahrain Polytechnic is an exciting new tertiary education
institute committed to providing young Bahrainis with the
education and skills needed to contribute to and benefit from
the economic transformation of the Kingdom of Bahrain.
Bahrain Polytechnic was established by Royal Decree No.
65 for year 2008 as a key initiative of the National Education
Reform Project Board.
The Polytechnic is to address the need for a skilled Bahraini
labour force and produce graduates who are work-ready.
The programmes provided by the Polytechnic have
been developed in consultation with business, industry,
professions and international education and training
institutions.
Bahrain Polytechnic is a bold and visionary initiative
contributing to the support of social and economic
development in the Kingdom of Bahrain, in line with its 2030
economic vision. During 2009 Bahrain Polytechnic took its
second annual intake of students.
Bahrain Teachers College
The establishment of the Bahrain Teachers College (BTC)
in 2008 was an important part of the national educational
reforms. This followed the findings of a diagnostic which
showed 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, has been 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.
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.
Our Growing
Kingdom
The BTC is an autonomous 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 governing board. Teaching
at the College is formally bi-lingual, in recognition of the
importance of fluency in Arabic and English for achieving
excellence in the teaching profession in Bahrain.
In September 2009, the college received its second intake
of 300 students, an increase of 50 per cent compared to the
previous academic year for both the Bachelors in Education
(BEd) and the Post Graduate Diploma in Education (PGDE)
courses.
Legal Framework and Governance
The Economic Development Board recognises that
a contemporary, continuously reviewed, reliable and
transparent legal framework is essential to the success of the
Bahrain economy. 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 preparing and drafting contracts and providing
legal advice to other EDB departments regarding agreements
to be entered into by the Board with other parties, the Legal
Department also provides legal advice to other departments
on other legal and contractual matters and on services to
potential investors.
The Legal Department contributes and assists in drafting
laws and regulations related to business and investment
matters in the Kingdom. It also works in coordination with
Ministries and other governmental agencies on reviewing
and introducing the necessary amendments to existing laws
and regulations to enhance and strengthen the legislative
environment in a manner that is more favorable to business
and investment in the Kingdom.
 33

Objectives: • The Economic Development Board worked jointly with

the Ministry of Justice and Islamic Affairs on drafting a
One of the main priorities of the Economic Development
bill establishing a chamber for the resolution of economic,
Board is to contribute to formulating plans for executing the
financial and investment disputes. The chamber was
initiatives included in the National Economic Strategy and
eventually established in July 2009 pursuant to Legislative
monitors the implementation process and in addition assists
Decree No. (30) of 2009 with respect to the Bahrain
in the issuance of related laws and regulations. Towards this
Chamber for Economic, Financial and Investment for
end, the Legal Department takes part in drafting laws and
Dispute Resolution. The Board has since been assisting in
regulations and reviewing other legal instruments for the
drafting the necessary implementing regulations.
purpose of implementing these initiatives.
• The Legal Department has followed up with the relevant
Furthermore, the Economic Development Board provides
ministries and governmental bodies the issuance of
opinion on draft laws and regulations related to business
implementing regulations for several laws, namely
and investment, whether these drafts are proposed by
those related to commerce, economic and investment.
the Government, the Shura Council or the Council of
This follow-up has led to the issuance of few of these
Representatives.
implementing regulations.
In addition, the Economic Development Board assists the
• The Legal Department reviewed the need for Bahrain to
Ministry of Industry and Commerce on resolving legal
be a part of several treaties and conventions related to
matters related to the implementation of the Free Trade
business and investments e.g. The Hague Convention
Agreement between the Kingdom of Bahrain and the United
Abolishing the Requirement of Legalization for Foreign
States of America.
Public Documents. Concluded in 1961. Accession to
this convention was accepted by the Ministry of Foreign
2009 Achievements:
Affairs, and accession process is now being followed up
• The Economic Development Board drafted several laws with the relevant government departments
and regulations, including drafting a bill amending some
provisions of the Penal Law promulgated by Legislative
Decree No. (15) of 1976 by adding a new chapter on
Bribery and Embezzlement in the Private Sector. It is
anticipated that this will contribute to improving further
Bahrain’s rankings in anti-corruption indicators. The Board
also drafted a bill on the Conflict of Laws and assisted in
drafting a Bill on the Rental of Real Estate.
• The Economic Development Board also drafted a bill
amending Legislative Decree No. (18) of 1997 Regulating
the Profession of Pharmacists and the Pharmaceutical
Centers in order to promote investments in this sector.
The Board further finalised the Computer Crimes bill
and is currently following up the enactment process
of the Law with the Shura Council and Council of
Representatives.
 Transport into
34 the Future
Annual Report 2009
Bahrain Economic Development Board

Salman Industrial City
The commencement of the operational phase of the new
Salman Industrial City in 2009, which includes several key
areas in the Hidd area, such as the Bahrain International
Investment Park, Bahrain Investment Wharf and Hidd
Industrial Zone, and is adjacent to the new Khalifa Bin
Salman Port, is a landmark event which will play a valuable
role in attracting foreign direct investments to Bahrain.
The Salman Industrial City has been named after His Royal
Highness Prince Salman Bin Hamad Bin Isa Al-Khalifa,
Crown Prince of Bahrain and EDB Chairman, in recognition
of his work and vision to develop the national economy and
build a better life for every Bahraini, through his work with
the EDB and the launching of a number of national initiatives,
including the deregulation of the telecommunications
industry and the establishment of Mumtalakat to manage the
government’s non-oil assets.
The industrial sector plays a major role in Bahrain is
economy, contributing approximately 16% of Gross Domestic
Product, and the new Salman Industrial City offers a number
of opportunities for international companies seeking to
establish a position in the combined trillion dollar Gulf
market.
The surrounding infrastructure including Bahrain
International Airport and King Fahd Causeway to Saudi
Arabia—and the planned construction of the causeway
linking Bahrain to Qatar provide an excellent transport
network to reinforce Bahrain’s strategic location at the heart
of the Gulf.
The inflow of investments within Salman Industrial City
has already reached $3.5bn and will reach over $7.6bn after
completion of its various projects, which is a reflection of
the benefits identified by international industrial companies
in setting up operations in Bahrain and gaining access to
the surrounding markets through the excellent direct air and
road links.
Khalifa Bin Salman Port
His Majesty King Hamad Bin Isa Al Khalifa inaugurated
Khalifa Bin Salman Port. The inauguration ushers in a new
era of sophisticated port management and boosts the
Kingdom’s economic status on regional and international
levels in accordance with Bahrain’s Economic Vision 2030.
The Khalifa Bin Salman Port, occupying a land area of 110
hectares of reclaimed land on the Northeast of the Kingdom
of Bahrain, began operations in April 2009 and is expected
to quickly become the premier trans-shipment hub for the
Northern Gulf and Saudi Arabia.
The state-of-the-art BD136.3m Port has a total quayside of
1800 metres and is designed to accommodate a container
capacity, measured as twenty-foot equivalent units (TEU), of
more than 1.1 million TEUs annually, as well as passengers,
general breakbulk and roll-on/roll-off cargo.
Its capacity is four times larger than the capacity of Mina
Salman Port, which has been Bahrain’s main port over the
past 50 years. The new world-class port will ultimately have
the capability to handle ships with draughts up to 15m, the
 35

size of which are becoming commonplace in the Arabian The first batch of cadets commenced their training in 2009.
Gulf as foreign trade increases and the region prospers. These cadets are the first of 100 Bahrainis who will have
the opportunity to become a commercial pilot through a
Khalifa Bin Salman Port is the first multi-functional facility
joint initiative with Mumtalakat, Bahrain Development Bank
that is focused on imports, exports, re-exports, and other
‘BDB’, Tamkeen (Labour Fund) and is run by the GAA.
value-added economic activities in the region. It represents
a quantum leap for Bahrain in the area of maritime shipping. Starting from October 2009 the cadets spent the majority of
The port is one of the most modern ports in the Arabian Gulf their time in Oxford Aviation Academy, England to complete
and it will help revive economic activity and attract foreign the internationally certified commercial pilot training
investments to the region, especially the Northern Gulf. programme. Once the two year programme is complete, GAA
will support the cadets in their job search both in Bahrain
It is also one of the most prominent developmental projects
and across the region.
for the Bahraini society, creating a better standard of living
for citizens as it offers rewarding job opportunities for the Bahrain is working to become a regional centre for aviation.
people of the Kingdom. We are pleased to reveal today that Air transport infrastructure is of strategic importance to
about 87% of the workers in the port are qualified Bahrainis. Bahrain due to the Kingdom’s geographical location and it
will help drive economic growth for the country in the future.
The programme will help to supply the country’s future
Gulf Aviation Academy demand for Bahraini trained commercial pilots as it develops
its air transport infrastructure.
Gulf Aviation Academy (GAA), a fully owned subsidiary of
Mumtalakat Holding Company was established in 2009 to
train young Bahrainis to become commercial pilots. GAA is
the first aviation academy to be based in Bahrain.
The first initiative of GAA was the High Flyer Program, an
intensive training course that will qualify Bahraini graduates
with no previous flying experience, and have demonstrated
the unique qualities needed to become an internationally
certified commercial pilots.
 International
36 Presence
Annual Report 2009
Bahrain Economic Development Board

The EDB was able to

penetrate the global media
with more positive key
messages, putting Bahrain
on the international
economic map.

The Economic Development Board works on shaping across the globe. The EDB was able to penetrate the
Bahrain’s international image and attract targeted global media with more positive key messages, putting
foreign direct investments into the Kingdom. The Bahrain on the international economic map.
EDB efforts are particularly focused on key sectors
Outside Bahrain, the EDB continued to identify and
which drive sustainable economic development
benefit from international opportunities to improve
and, ultimately, job creation for Bahrainis. One of
understanding of Bahrain’s advantages for business
the main functions of the EDB is to create “informed
with decision makers across the world. The EDB has
predisposition” amongst senior decision makers of FDI
participated in leading economic forums such as the
decisions, ensuring that they know about Bahrain’s
WEF meetings in Davos, Switzerland, WEF Middle
advantages as a Gulf business destination, and
East, in Jordan, WEF Summer Davos in China and
encouraging them to consider Bahrain when entering
WEF India, as well as other international summits such
the Gulf markets.
as the IMF Turkey. All these events provided strong
During 2009 the Economic Development Board had platforms for Bahrain and will be further leveraged in
actively participated in media engagement and events 2010.
in Bahrain and across the region, as well as in events
 37

For healthy growth, just add Bahrain.

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Bahrain: a complete economic ecosystem providing all the

sustenance that business needs; one that has helped Siemens,
DHL, BNP Paribas, Kraft and a host of others to blossom in the
Gulf. For gardening tips, visit bahrain.com

38
Annual Report 2009
Bahrain Economic Development Board
HRH Chairman’s active role
His Royal Highness Prince Salman bin Hamad Al Khalifa, the
Crown Prince and Chairman of the EDB, played an active role
in taking the Kingdom of Bahrain’s story to a wider audience
through effective and well planned engagement with leading
international media. This included interviews with UK based
Sky News and the Middle East Economic Digest (MEED),
both of which visited Bahrain to conduct the interviews.
Following a meeting in Washington with the leading U.S.
newspaper, The Washington Post an opinion piece by
His Royal Highness on Middle East Peace was published.
The editorial had significant influence both regionally and
globally, and was cited by US Special Envoy to the Middle
East, George Mitchell as a positive example of Middle East
leadership.
International
Presence
International engagement
The EDB’s global communications team worked alongside
the EDB senior team and high level government ministers
to organise a wide range of media and stakeholder
engagements both overseas and in Bahrain.
A number of meetings and briefings took place in London
during 2009 including with The Telegraph, Business Week
and Bloomberg TV. At the same time a wide range of
international and regional media made a number of visits to
Bahrain, increasing the presence and the positive image of
the Kingdom worldwide.
Internationally, the EDB attended and addressed a number of
business events such as the Singapore Business Federation
and Middle East Group in Singapore, the Korea-Middle East
Symposium on Future Growth Strategies in Korea, WEF
Summer Davos Forum in China, and joined the Bahrain
delegation at two World Economic Forums, in Switzerland
and Jordan.
During the year, The EDB Chief Executive visited the
U.S.A for a media and influencer tour. A series of media
meetings provided opportunity for Bahrain to communicate
its messages in an unfiltered way through meaningful
discussions with key influencers. Media briefings were
set up with leading New York and Washington D.C. media
and with a think tank and policy body. 2010 will see further
media engagement tours to the U.S.A.

Road shows
The EDB participated in several road shows to promote the
Kingdom. A delegation from Bahrain, including figures from
the EDB and the private sector, visited Germany to promote
the country’s manufacturing credentials and opportunities
for bilateral trade during the 5th European Manufacturing
Strategies Summit. Other delegations led by the EDB
visited both Japan and Germany to showcase the state
of the art Bahrain Logistics Zone (BLZ) and the benefits it
offers businesses looking to access the Gulf, and enhance
opportunities for bilateral ties with the two nations.
In addition, EDB participated in various international
conferences and exhibitions to attract targeted foreign
direct investment (FDI) into the Kingdom. The efforts are
particularly focused on key sectors which drive sustainable
economic development.
39
Business Friendly Bahrain
The launch of the Business Friendly Bahrain campaign in
2008 served to raise investor awareness of Bahrain’s story,
and ensure that the Kingdom was top of mind for businesses
looking to establish a commercial base in the Gulf. In 2009
a follow up integrated campaign encompassing Bahrain’s
key messages in print, online, outdoor and television was
developed, along with a high-frequency media plan designed
to most efficiently and effectively reach FDI decision makers
in key markets such as Europe and Middle East.
The high frequency 2009 print campaign kicked off with a
new copy-led approach which continued to communicate
the Bahrain business story through a multi-execution
campaign. It was a business to business campaign seeking
to target high-level business decision makers and educate
them about our key messages which is in turn supported
by fact and evidence. Several print executions were
developed in English, German and Arabic and placed in
leading international and regional publications, supported by
considerable online presence as well as in the outdoor arena
in the form of London Taxis. A full collateral strategy was
also implemented to cater for events and visiting delegations.
In addition, finance-specific fact sheets were developed along
with four case studies spanning financial services (American
Express, BNP Paribas), professional services (Ernst & Young)
& manufacturing (Kraft) which reflect first hand experiences
of companies that have successfully set up their businesses
in Bahrain.

40
Annual Report 2009
Bahrain Economic Development Board
Economic Development
Board prioritized its efforts
towards generating awareness
and better understanding
of the concepts, directions
and aspirations of Bahrain
Economic Vision 2030 and the
National Economic Strategy.
In 2009, the Economic Development Board prioritized
its efforts towards generating awareness and better
understanding of the concepts, directions and
aspirations of Bahrain Economic Vision 2030 and the
National Economic Strategy to all segments of the
Bahraini society.
This strategic initiative was aimed at winning the
support of the people and paving the way for their
active participation in determining Bahrain’s future by
positively reflecting their aspirations and transforming
them into reality for the benefit of the government, the
people and the business sector.
The EDB commenced work in this regard, with
a focused objective of achieving unified media
messages across various channels of communication
between all government and official bodies, utilizing
the right methodology and mechanisms, including
public and private media, workshops, forums and
public gatherings, as well as other means of media to
communicate with the public.
The emphasis was on promoting the media teams
inside the government to be more focused on
One Vision,
One Message
supporting the ministries and government agencies in
the Kingdom with their projects and initiatives through
effective media campaigns. The EDB has worked to
help the ministries and government bodies effectively
communicate their detailed strategies to the citizens.
The EDB also focused on institutions and youth
associations, concerned with the youth sector,
conducting workshops for young Bahrainis to
introduce them to Bahrain Economic Vision 2030.
This initiative was in addition to workshops and
monthly meetings that brought together specialists
in the communications, media and public relations
in the ministries and government bodies within the
Government Communications Professionals Network.
The objective of the workshops and meetings was to
enhance communication and coordination between the
departments of Public Relation and Communication
in the Kingdom with the objective of improving the
government media services and enable capacity
building and skills development of the employees
towards providing better services to the citizens.
41

42
Annual Report 2009
Bahrain Economic Development Board
Education Project
Over three hundred delegates from sixty-five countries
attended the inaugural Education Project event, held at the
Shaikh Isa Cultural Centre and National Library in Bahrain,
to share best practices and create a practical roadmap that
educators around the world can follow in order to improve
outcomes.
The Education Project, is an initiative of His Royal Highness
Prince Salman bin Hamad Al Khalifa, Crown Prince and
Chairman of the Economic Development Board, seeks
to create a new community of international educational
professionals from all sectors interested in developing new
models and standards in education, to address the steadily
declined of education outcomes around the world over time
in spite of increased government spending.
The Education Project was borne of a deep conviction that
in order to improve learning outcomes for our children, there
needed to be a gathering place for top educational thinkers
innovators and practitioners which include: administrators,
principles, teachers and policy makers – together the
business elite, and particularly the media on whom the
conference rely on to get the word out so that they can get
the attention of policy makers, as well as sources of funding
for the great ideas they will come up with, to accelerate the
pace of change.
The key objective of The Education Project was that
delegates leave equipped with the information and insights,
and more importantly, with the commitments, partnerships
and backing they need to enable them to make real changes.
Bahrain has long had a successful track record in education -
it was the first country in Middle East to introduce universal
education for men and women (over 70 years ago). It is now
Converting the Local
into International
working to reform its education system to meet the economic
and social challenges of the 21st century by supporting
growth and development, and ultimately, providing greater
opportunity for all Bahrainis.
The Education Project will be hosted in Bahrain again in
2010 with anticipated participants rising to nearer 500 and
increasingly from key educational countries such as South
Korea, Sweden and Canada.
Formula One 2009
Formula One (F1) Gulf Air Bahrain Grand Prix 2009 was
yet another timely reminder of Bahrain’s pole position as a
regional business hub. Bahrain was one of the most watched
circuit on last year’s F1 calendar, it is estimated that over
one billion viewed the race live on television, helping to
raise awareness of the Kingdom as an attractive location for
international businesses looking to access the markets of the
Gulf and MENA region.
The Gulf Air Bahrain Grand Prix has gone from strength to
strength since the first race in April 2004. It is testament to
its success and professional organisation that the organizers
of formula one race announced late in the year that Bahrain
has been chosen to open the 2010 season.
Over the last six years, Gulf Air Bahrain Grand Prix has seen
the race developed a platform for business development
as well as a global shop window for the Kingdom. Bahrain
is a burgeoning business and tourism destination which
is rich in heritage, yet still excited about its future and the
opportunities which lie ahead.
 43

Spring of Culture Spring of Culture 2009 also featured a theatrical performance

by the famous Lebanese actress Nidal Al Achkar, the Korean
In its fourth year, the Spring of Culture 2009, the largest and
Nanta Theatre group and the Salzburg Marionette Theatre.
most diverse art and culture festival in the GCC, included an
The programme also included musical performances by
eclectic mix of the best international performers and artists
L’Orchestre National de Barbes, The Edward Said National
from the fields of music, theatre, visual arts, dance, song,
Conservatory for music and the Qawwali Group as well as
poetry and literature including a dedicated Educational
many others.
Programme of discussion seminars, workshops and lectures.
This year the event celebrated Jerusalem as the UNESCO Spring of Culture 2009 was organised by the Economic
Capital of Arab Culture 2009. Development Board in association with the Sector of Culture
and Heritage at the Ministry of Culture and Information and
The festival comes as a direct result of the EDB’s continuing
the Sheikh Ebrahim Bin Mohammed Al-Khalifa Center for
efforts to realising Bahrain’s full potential, working to
Culture and Research, and arts centres and galleries across
distinguish Bahrain in every different field. Culture is one of
Bahrain
the key elements of society and to ensuring a sustainable
economy. This is why the EDB is keen to support the efforts
to distinguish Bahrain on the Gulf cultural map and attract
more cultural visitors, a bolsters to the EDB efforts to attract
more businesses to Bahrain.
Despite recent ingratiation, this annual cultural celebration
has established itself as a true highlight of the Arabian and
international cultural calendar attracting some of the biggest
talents globally.
Distinctive cultural diversity was showcased throughout the
event programme by a variety of well known international
music performers including Angelique Kidjo - Grammy award
winner from West Africa, Omara Portuondo- Buena Vista
Social Club, Ghalia Benali - Winner of World Music Award
2008, Aisha Ridwan - jazz and blues singer from Morroco,
and Dane Zanes and Friends - Grammy award winner for the
best musical album for children.
 Attracting New
44 Investments
Annual Report 2009
Bahrain Economic Development Board

In 2009 the Economic

Development Board’s efforts
continued to attract high-value
businesses with potential to
generate medium and high-
skilled jobs.

The Economic Development Board’s efforts are central
to Bahrain’s Vision 2030 and National Economic
Strategy, designed to encourage the private sector
to drive growth, support further diversification of the
economy – already recognised as the most diversified
in the Gulf – and ultimately elevate national living
standards by creating greater opportunities for
Bahrainis.
The EDB has the overall responsibility for formulating
and overseeing the economic strategy of the Kingdom
and creating the right climate to attract foreign
investment.
The EDB recognizes the importance of attracting
new investment to the country. In this context the
Business Development Department form the first point
of contact for foreign investors, and has two main
functions:
45
 Attracting New
46 Investments
Annual Report 2009
Bahrain Economic Development Board

1- Promotional activities MTQ Corporation Limited Group

EDB targets companies in its key markets through direct MTQ Corporation Limited Group (MTQ), a leading
marketing campaigns as well as events and road shows. engineering services company listed on the Singapore Stock
EDB has dedicated skilled client relationship managers Exchange, had obtained approval in principle from the
with sector specialties. They meet with foreign investors Ministry of Industry & Commerce of the Kingdom of Bahrain
and provide them with all the information they need about to provide specialist engineering services and components
sector-specific business opportunities as well as the general for the oil and gas industry in Bahrain and the Gulf states.
information on doing business in Bahrain that will help them MTQ Bahrain, a wholly owned subsidiary of MTQ, is being
make their decision making process as objective and efficient formed to carry out these operations.
as possible. Also the team is very well-connected with the
As part of its commitment, MTQ is planning to construct
private sector and therefore has the ability to do customized
a state-of-the-art US$20 million facility at the Bahrain
visit programs and match-making for those investors looking
International Investment Park (BIIP) near Hidd. This new
for local partners.
facility at the BIIP will support MTQ’s existing GCC
customers and also enable it to develop new customers in
2- Facilitation and aftercare
the region.
The facilitation service works to ensure that companies are
When completed in 2010, the facility’s main activity will
aware of all the laws, rules and regulations for conducting
be the repair and reconditioning of equipment used in the
business activities in their sector. The service essentially
operation of blow-out preventers, a key precision safety
offers “hand-holding” for companies throughout the
device used on all land and offshore oil and gas rigs. The
commercial registration procedure to ensure streamlined,
facility will also focus on activities such as the fabrication of
straightforward and transparent processes and to ensure that
structures, housings, flanges and other precision parts.
all approvals, visas, work permits and other related protocols
are in place. MTQ initially plans to provide up to 110 jobs for highly skilled
operators and the company will provide a dedicated training
While maintaining a regular contact with key officials at
programme for Bahrainis. On completion of the facility, the
relevant ministries and government agencies to provide
company plans to employ over 250 people in Bahrain.
continuous and integrated support for investors, the
facilitation service is in constant with the EDB’s legal
experts to make certain that all business activity is in strict
compliance with the latest laws and regulations.
In 2009 the Economic Development Board’s efforts continued
to attract high-value businesses with potential to generate
medium and high-skilled jobs. During the year the EDB
strengthened its international outreach and introduced
organizational change making the EDB’s overall efficiency in
attracting new FDI into Bahrain improved noticeably.
The follawing are some examples:

Eisai Co. Ltd.
Eisai Co. Ltd., one of the leading global pharmaceutical
companies, opened a regional office in Bahrain. The
new office has been established as a branch of its Asian
headquarters, Eisai Asia Regional Services Pte. Ltd., in
Singapore and signals the company’s increasing presence in
a region still enjoying enviable rates of growth.
Established in 1941, Tokyo-based Eisai is a human healthcare
company, seeking innovative solutions in disease prevention,
cure and care for the health and well-being of people
worldwide. The company currently has six active markets
in the Middle East: Jordan; Sudan; Yemen; the United Arab
Emirates; Kuwait and Saudi Arabia. Eisai’s move to Bahrain
is the culmination of a lengthy search for an operational base
in the region.
The decision follows positive consultation with the Bahrain
Economic Development Board EDB.
47
Tech Mahindra Limited
Tech Mahindra Limited (TechM), one of the largest solution
providers in the telecom space and India’s 6th largest
software exporter, announced its expansion plans of Bahrain
Office. Tech Mahindra opened its regional office in the
Kingdom in March 2008 and has now decided to place it at
the centre of its GCC wide expansion plans. It will be hiring
additional consultants to meet the IT services and solutions
requirements of GCC based companies.
India based Tech Mahindra is a global systems integrator
and business transformation consulting firm focused on
the burgeoning telecommunications industry. With wholly
owned subsidiaries in the US, Europe, Singapore, Thailand
and Indonesia, the US$ 1 billion Tech Mahindra’s service
offerings include business process outsourcing, infrastructure
management services and value added services.

48
Annual Report 2009
Bahrain Economic Development Board
In 2009, the Economic
Development Board focused
on the commencement
of the implementation of
Bahrain Economic Vision
2030 in coordination with the
government entities.
During 2010, the Board will be working to make
appropriate amendments to the National Economic
Strategy so as to accommodate the changing
circumstances and challenges posed by the global
economic crisis, in order to increase its effectiveness,
and get the expected results. Moreover, the Board
will continue to work closely with the ministries and
government agencies to ensure the implementation
of the initiatives identified in the economic strategy
according to the prepared program.
The Way
Forward
Initializing the strategic paln process for the
government entities together with the economic
sustainability are among the highest priorities of the
Economic Development Board. Therefore, during
2010, work will be made to link the strategic plans
emanating from the national economic strategy with
the government budget so as to enhance the principle
of working within a unified national economic plan
aiming primarily at serving the Bahraini citizen, raising
the living standards, and ensuring the reflection of the
financial requirements of the government agencies on
their strategic objectives and the financial policy of the
Kingdom to ensure the sustainability of the financial
resources, which is the cornerstone of economic
sustainability.
 49

In view that the provision of cost effective housing units Development Board has plans to draft more legislation
constitute a clear priority to the Bahraini citizens, the EDB on matters related to the economic advancement of the
will support Ministry of Housing in the development and Kingdom in sectors such as tourism.
implementation of the housing strategy and the appointment
The responsibility for attracting foreign investors to Bahrain
of partners from the private sector will begin for providing
is among the functions of the Economic Development
housing services, in addition to the follow-up of the
Board. In this regard, the Board is currently focusing on
implementation of the infrastructure projects within the
the businesses sectors which constitute the backbone of
national economic strategy 2009-2014.
the Bahraini economy, including the financial sector and
Due to the great importance of education and training in industrial and business services. In this regards, during
achieving the objectives of Bahrain’s Economic Vision 2010, the Board will launch a comprehensive international
2030, the Economic Development Board will continue to promotion and marketing plan to the Kingdom of Bahrain
support the new educational institutions (Quality Assurance aiming at attracting more foreign investment and business
Authority for Education and Training, Bahrain Teachers to the Kingdom through projecting more positive images
College, and Bahrain Polytechnic) to ensure the compatibility of Bahrain to investors seeking setting up bases in the Gulf
of their work with the other educational initiatives, develop region and the Middle East.
a framework for the national education qualifications
The Economic Development Board focuses also on the
in Bahrain, develop the final forms of the strategies for
development of the industrial sector, where major successes
improving schools, education, vocational training, and higher
have been achieved over the last decade. The national
education and to commence their implementation.
economic strategy looks to develop new industries from
Health sector will also take up part of the work of the existing ones, to seek new industrial opportunities through
Economic Development Board in 2010, as, after the promoting innovative products, and to continue attracting
development of an integrated work plan in 2009 to create major international industrial companies to establish their
and establish the National Authority for Organizing Health production facilities in the Kingdom for serving the markets
Professions and Services, work will be made to diagnose the of the neighboring countries.
reality of the government health services in preparation for
To ensure the ability of the Economic Development Board
developing a national strategy for the development of health
to work effectively, the provision of training and capacity-
care sector, in addition to conduct a study to determine
building will continue within the Board to assist in
the level of expenditure on the health care in the next two
developing the skills of the team and its staff members at all
decades.
levels and to improve their productivity. The Board will work
In the context of the implementation of the national to adhere to the utmost transparency and accountability
economic strategy initiatives, the EDB will work to develop in all its operations and make every effort to provide better
an appropriate framework for transparency and governance services to the Kingdom, its people, government, institutions
to ensure effective implementation of these initiatives due and investors, whether they are local, regional or global.
to the fact that these principles constitute a solid foundation
Together with all our entities, we will be keen to make the
for the development of government work. In the same
Economic Vision 2030 of the Kingdom of Bahrain a fact of life
context, work will commence on the institutionalization of
in all aspects, but we will not be able to do so without the
government work within an integrated national strategic
solidarity of all the people of Bahrain in working for a bright
plan designed to increase productivity in the government
future for us and our children.
agencies.
Following the development of detailed work plans to
the initiatives of the development of the judiciary, the
implementation of these initiatives will commence in 2010
through the development of a system for licensing the
legal and to develop electronic systems for accelerating
determination and consideration of actions to ensure the
speed of justice and improve the factors affecting the
attractiveness of Bahrain for business and new investments.
In 2010 the Economic Development Board will actively seek
to enact the laws it drafted during 2009. It will further review
some of the business and investment related legislations
to identify the need for improvements. The Economic