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The Bahraini government is working to create favourable conditions for encouraging growth in the private sector and is taking steps to shift the state’s role from provider to regulator. The promotion of the health care sector is in line with the priorities set forth in Economic Vision 2030. Accordingly, the state has undertaken and made plans for a number of initiatives to expand and upgrade the existing public health care facilities. In addition to expansion of existing facilities, the private sector is building new hospitals and other facilities, partially in response to growing demand for medical tourism. The Kingdom is also looking to train more Bahraini doctors and reduce dependence on expatriate medical staff. The opening of King Hamad University Hospital (KHUH) in December 2011 is expected to provide opportunities for local students to gain practical experience.

As a central pillar of the reforms outlined in Economic Vision 2030, the Bahraini government’s long-term development plan, education plays a key role in the economy. Indeed, having recognised the importance of human capital development, the government has taken significant steps in recent years to improve its public schools and higher education institutions. These include reform efforts at the school level, most notably through the School Improvement Programme (SIP) and the move to develop a new curriculum. One aspect of the country’s approach to education that is distinctive and commendable is the fact that it is largely “home-grown”, centred around empowering locals and using local leadership. At the same time, regulatory organisations keep a close eye on the system to ensure the provision of quality education, both by public and private sector institutions. Taken together, recent educational reform efforts should ultimately help to make Bahrainis more competitive in the workplace, as well as provide additional employment opportunities. This chapter includes an interview with Sheikha Hessa bint Khalifa Al Khalifa, Executive Director, inJAz Bahrain.

After a difficult year in 2011, the return of the Formula 1 (F1) Gulf Air Bahrain Grand Prix in late April 2012 signalled a possible turning point for the country’s tourism sector – a sign that, perhaps, things are now on a path towards renewed growth after what has been, by all accounts, a difficult year. However, not all of the Kingdom’s tourism segments were affected, nor have the fundamental strengths that have made it a leading destination for business travel been damaged. Indeed, Bahrain’s performance and outlook as a site for meetings, incentives, conferences and exhibitions (MICE) remains a bright spot for the country. Business tourism has traditionally proven less sensitive to negative publicity than other forms of tourism, and MICE tourism in Bahrain has remained strong over the past year. Indeed, tourism has been identified as key to economic diversification, according to the Kingdom’s long-term development plan, Economic Vision 2030. This chapter includes an interview with Sheikha Mai bint Mohammed Al Khalifa, the Minister of Culture.

The Kingdom’s tradition of innovation continues to makes it one of the most vibrant IT centres in the region. Sustained investment from the public and private sectors has seen businesses and government services move online, bringing cost-saving gains in efficiency. Throughout 2011, which saw many Bahraini businesses challenged by decreased investor confidence and consumer spending, the IT sector has proved to be one of the most resilient, with the market growing some 8.1% year-on-year. One of the main factors driving growth is public investment in the eGovernment programme, which aims to simplify access by moving public services online. The initiative is an important facet of the Kingdom’s Economic Vision 2030, the country’s long-term development plan. In a push towards greater diversification of its economy, the Kingdom is also investing heavily in its human capital by introducing funding and a number of IT training programmes. This chapter includes an interview with Abdul Razak Jawahery, Vice-Chairman and Managing Director, Menatelecom.

A decade has passed since Bahrain’s telecoms sector was revolutionised by the liberalisation of the industry and the formation of an independent regulator. Fixed and mobile telephony and broadband services reach nearly every household, and many mobile users maintain multiple SIM cards, giving a mobile penetration rate well over 100%. Within such a highly competitive sector, telecoms companies are constantly pressed to find innovative ways to keep their share of the market. A continuously evolving regulatory regime is ensuring that few barriers exist to customers who wish to change telecoms service providers. While investors in the sector face a saturated market with a high degree of competition, the relatively underdeveloped mobile broadband segment holds great potential for growth. This chapter includes an interview with Mohammed Ahmed Al Amer, Chairman, Telecommunications Regulatory Authority.

Despite a challenging few years, the Bahraini construction sector looks set to grow in 2012. Local construction and development companies have reoriented towards areas of the market with the most potential, including social housing and transport infrastructure projects. The government aims to increase public transport usage from 5% to 25% of total journeys per day, planning a wealth of public transport system upgrades (including light rail, monorail, tramway and buses). Another key segment will be housing, and it has been estimated that 51,519 extra households will be eligible for social housing by 2020. Overall, in a sign of recovery from the global financial crisis, the value of contracts is forecast to grow, from $949m in 2012 to $1.49bn the following year. The private sector also appears to be going through a period of reinvigoration, with activity starting up again at projects that were previously on hold. This chapter includes interviews with Essam bin Abdulla Khalaf, Minister of Works; Aaref Hejres, Chairman, Bahrain Property Development Association; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.