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The hydrocarbons industry is a key contributor to the economy, accounting for around 22% of GDP in 2012 as well as some 75% of government revenues. Efforts to boost production are expected to see output reach 100,000 barrels per day by 2020. The government has pledged to invest $15bn in the hydrocarbons sector over the next 30 years, with energy diversification and a growing focus on solar and wind power set to lessen the kingdom’s dependence on natural gas. Despite current energy production outpacing peak demand, the government is working to encourage reduced power and water consumption through a public awareness campaign, while increasing power production capacity. This chapter includes interviews with Adel Khalil Al Moayyed, Chairman, BAPCO; and Abdul Hussain bin Ali Mirza, Minister of State for Electricity and Water Affairs.

While motor insurance remains the chief source of revenue and claims, accounting for 25.8% of the total $565.5m in gross premiums recorded in 2011, mandatory medical insurance – which has been on the table for several years and is expected to become a law in the short to medium term – has the potential to provide a new and lucrative line of business. There is also an increasing focus on risk-based underwriting as the highly competitive domestic market seeks to ensure profitability continues. This chapter includes an interview with Zakareya Sultan Al Abbasi, CEO, Social Insurance Organisation.

Global Islamic banking assets were pegged at about $1.3trn in 2011 but are expected to rise to as much as $1.8trn by the end of 2013. As such, Islamic banks are seeking to diversify the sharia-compliant financial instruments they offer. Leaders throughout the region are starting to look toward sukuk, or Islamic bonds, for infrastructure finance as an aid to development, and while it is currently a less developed segment of Islamic financial services, takaful, or sharia-compliant insurance, is following the general growth pattern being experienced by Islamic banks across the globe. This chapter contains interviews with Mohammed A Rahman Bucheerei, CEO, Ithmaar Bank; and Aabed Al Zeera, CEO, International Investment Bank.

With its experienced workforce and historical connections to Saudi Arabia, the Bahrain banking sector has continued to be a key segment of the economy. Although retail banking in the kingdom was largely sheltered from the global economic crisis, the changing international landscape is driving financial institutions to explore new strategies, while the banking regulator is continuing efforts to strengthen the sector by focusing on the new Basel III standards, improving corporate governance and protecting consumer interests. This chapter contains an interview with Ali Moosa, Senior Country Officer for Bahrain, JP Morgan.

Despite a number of notable uncertainties in the global economy, Bahrain’s economic outlook remains mostly positive. Largely insulated from international economic turmoil, the kingdom saw more than 6% GDP growth in 2008 and 3% in 2009. In 2012 the economy expanded at a rate of 3.4%, largely due to the robust private sector, which a number of government initiatives are aimed at supporting, such as fostering small and medium-sized enterprise growth and promoting innovation. With forecasts for expansion throughout the Gulf region, particularly in the domestic non-hydrocarbons sector, some expect to see Bahrain's GDP grow by 5% in 2013. This chapter contains interviews with Mahmood Hashim Al Kooheji, CEO, Mumtalakat; Shaikh Mohammed bin Essa Al Khalifa, Chairman, Tamkeen; and Sheikh Khalid bin Abdullah Al Khalifa, Chairman, Mumtalakat.

The growth of Thailand’s heavy industries, as well as consumption among a burgeoning middle class, is fuelling demand for energy. On the production side, this demand is being partly met by increased lignite and natural gas extraction, while oil output continues to decline. The government is hoping that investment-friendly amendments to its Petroleum Act will help slow or reverse this decline. But natural gas growth is set to peak in 2013, and with domestic production already only responsible for one-third of Thailand’s energy needs, imports are set for a long-term increase. In response, the country is investing in liquefied natural gas import terminals and several pipelines, as well as hiking energy prices and promoting renewables. This section features interviews with Pailin Chuchottaworn, CEO, PTT Group; and Chanin Vongkusolkit, CEO, Banpu.