Purchase OBG Publications

New regulations from the Central Bank of Bahrain that seek to target the marketing of unauthorised financial services have recently been introduced. This new regulation is intended not only to regulate all the financial services and products that are offered in Bahrain, but also to safeguard the interests of the foreign financial institutions who wish to offer or market financial products and services. A new labour law conforms more closely to international standards and is generally seen as expanding the rights of employees. This chapter contains a viewpoint with Qays H Zu’bi, Senior Partner, Zu’bi & Partners.

The Third National Telecommunications Plan, unveiled in 2012, lays out the goals of developing a national broadband network and providing the regulatory framework necessary for implementing fourth-generation long-term evolution (4G LTE) technology. A considerable improvement in the country’s ICT capabilities, represented by a jump of five places from 45th to 40th between 2011 and 2012 in the ICT Development Index, is forecast to continue. The Telecommunications Regulatory Authority (TRA), which regulates the industry, has pursued policies to encourage market liberalisation and fair competition among operators, which has been a very positive force in the market. In a small, but highly competitive market, the main telecommunications companies within Bahrain have worked to carefully position themselves over the past few years toward the unveiling of the 4G LTE spectrum, which, due to a high level of ICT interconnectedness and the tendency of the kingdom’s population to be early adapters of new technologies, will most likely be very popular and profitable. This chapter contains a roundtable discussion with Sheikh bin Isa Al Khalifa, CEO, Batelco Group; Ulaiyan Al Wetaid, CEO, VIVA Bahrain; and Mohammed Zainalabedin, General Manager, Zain Bahrain.

Bahrain offers both citizens and residents a wide range of care provided by the government and the private sector. The government spent almost $557.86m on health care in 2011, which was an increase of close to 8% over 2010. Since that year it has been implementing a strategy to improve health care provision, which has focused, in large part, on integrating medical services and providing greater preventive care. The Supreme Council for Health, established in 2013, will set medical training standards, develop a range of policies on insurance and medical staff recruitment, and work to improve the effectiveness of coordination within the medical sector.

Events have been planned to celebrate Bahrain’s year as the Capital of Arab Tourism in 2013. MICE venues, such as the Bahrain Exhibition and Conference Authority’s complex at Sanabis, seek to offer a diverse range of meeting spaces, often in conjunction with hotels. Cruise ships are expected to further boost visitor numbers: the kingdom saw a record number of cruise ship arrivals for Bahrain in the 2011-12 season, and an estimated 70,000 cruise tourists are expected during the 2012-13 season. The authorities are also looking to upgrade the quality of accommodation on offer at the lower end of the market to broaden appeal to families.

Projects aimed at expanding the metals and petrochemicals segments are underway, with the current aluminium production of 2m tonnes set to increase to 10m tonnes by 2020 and plans from the Gulf Petrochemicals Industries Company to triple output of ammonia related products. There has also been a drive to create favourable conditions for foreign investment, including numerous business parks and revamped regulation. Considerable efforts are also being made to aid small and medium-sized enterprises, with greater integration of regional supply chains and further expansion of downstream industries seen as offering them a potential boost. This chapter contains interviews with Chris Potter, CEO, Arab Shipbuilding & Repair Yard; and Tim Murray, CEO, Alba.

With instability in the real estate sector largely stabilised after a slump in the property market, the government and private firms are focusing on the issue of affordable housing for nationals, with a plan to provide housing to 54,000 Bahrainis waiting for a subsidised government home. In the construction sector, plans are also in place to improve transport infrastructure, with roads and bridges set to receive the greatest share of funding. There has also been a renewed commitment to ensuring greener building regulations, and while the current emphasis in Bahrain is on affordable housing, this could open up new opportunities for green initiatives that also reduce costs for the construction sector. This chapter contains interviews with Essam bin Abdulla Khalaf, Minister of Works; Mohammed Khalil Alsayed, CEO, Ithmaar Development Company; and Christopher Sims, CEO, Naseej.