Docstoc

WELCOME TO BAHRAIN

Document Sample
WELCOME TO BAHRAIN Powered By Docstoc
					WELCOME TO BAHRAIN
A Financial Services focus
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       2
BAHRAIN WELL-PLACED IN GLOBAL ECONOMIC
ENVIRONMENT
          • Bahrain lies at the heart of the Arabian Gulf, with fast
            and efficient access to every market in the Middle
            East by air, sea and road.
          • The Gulf market cannot be ignored. It is a fast growing
            economy significant to global firms. It attracts more
            and more foreign investment across a broad range of
            sectors.
          • Bahrain – and the Gulf – are still poised to grow in
            2009.

           Population: 1,039,297 (approximately 50% expatriates)
           Area: 770 sq. km
           GDP: $20.5bn (2009)



                                                                       3
EDB’S MISSION
     Our aim is to enhance Bahrain’s economy by developing an economic
        growth strategy, enhancing the business environment through
                     reforms, and promoting investment.

       These efforts will be the catalyst to elevate the national standard of
       living and create more opportunities for Bahrainis to compete on a
                                    global scale



                                Enhance the business
  Develop an economic              environment                   Promote investment
    growth strategy
                                   Enhance the business          Market Bahrain globally to
   Help Bahrain’s government       environment through           attract investors to Bahrain
  look forward and define the   reforming specific sectors of          and enable their
   future of economic reform       economic importance          participation in the economy




                                                                                                4
LONG TERM ECONOMIC STRATEGY
Our main aim is to institutionalize a long term strategic planning process for the Government

                                        Purpose                                        Time horizon

                                             • Define Bahrain’s aspirations for 2030, as   • 2009–2030
                                               they relate to the economy, government,
                                               and society.
                     Vision                  • Embrace principles of sustainability
                                               competitiveness and fairness.
                   National                  • Translate Vision into strategic initiatives • 2009–2014 (6-year)
                   Economic                    across government
                    Strategy
                                             • Define government institutions’ priorities • 2009–2014 (6-year)
                Gov. Institutions              in-line with Vision and National Strategy
                 Strategic Plans
                                             • Outline a budget and define plans for       • Every 2-year
                 Budgeting and                 implementing initiatives and monitoring
                Implementation                 systems
                   Planning

                                             • Implement initiatives and measure           • Continuous,
                Implementation                 progress towards targets and strategic       starting in 2009
                                               objectives


                                                                                                               5
A TRACK RECORD OF PIONEERING
Bahrain has been a regional pioneer, with a constant drive for further improvements.
It was first in the Gulf to:

          • To start male education                                  1919
          • To start female education                                1928
          • To discover oil                                          1931
          • To start an economic diversification strategy that
                                                                     1960s
            favoured non-oil industry sectors
          • To establish a banking sector                            1970s
          • To introduce democratic reforms                          2001
          • To embark on privatization programs                      2002
          • To fully liberalize the telecoms sector                  2004
          • To sign an Free Trade Agreement with the USA             2006
          • Co-founded GCC Common Market                             2008


                                                                                       6
A STABLE, SOUND, AND GROWING ECONOMY

Bahrain Real GDP Growth Rate(%)



                                                                                 Nominal GDP in
                                                                                                        19.3 Bn
                                                                                 2009 (USD)



                                                                                 Real GDP Growth Rate    4.0%
                                                                                 2010 (projected)




Source:
Interagency Forecasting Group- Bahrain Economic Quarterly (First Quarter 2010)




                                                                                                                  7
BAHRAIN’S ECONOMY IS WELL DIVERSIFIED
                                      Contributors to Bahrain’s 2009 GDP

                                                     Other           Oil & Gas
                                                      9%                13%

                           Real Estate
                              10%                                                    Telecom &
                                                                                     Transport
                                                                                         9%




                          Financial                                                  Manufacturing
                          Services                                                      16%
                            27%


                                                                      Construction
                                                             Trade        8%
 Source:                                                      8%
 Central Bank of Bahrain, Economic Indicators 2009



                                                                                                     8
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       9
A CENTRE-POINT BETWEEN EAST & WEST

Middle of World Times Zones           Flight time to major business destinations
                                      in hours




Access to a large and growing
market
~ 36 million consumers in the Gulf
~ 440 million consumers in MENA
Over the next decade, the GCC is
poised to grow 4.5% p.a. vs. global
average of 3.3% - with an economy
worth $2 trillion by 2020 (EIU)




                                                                                   10
        BAHRAIN IS STRATEGICALLY POSITIONED TO
        SERVE THE GCC AND NORTHERN GULF
                                                                       Connectivity
 Iraq                                             Tehran
                                                                            • Direct road connection to Saudi
                                                     Iran                     Arabia (20 km) and Qatar(due
               Bagdad
                                                                              2013)
                                                                            • More connections and frequent
                                                                              flights to main business centers in
                          Kuwait                                              the region
                                                                            • Daily connections to financial
                                                                              centers in Europe and Asia
                                   Bahrain
          1 hr flight     Dammam
                                       Qatar         Dubai

                                        Doha
                                                                       Easy & Liberal Visa Policies
                        Riyadh
                                               Abu Dhabi      Muscat        • No visa requirements for GCC
                                               UAE
                                                                              residents
 Saudi                                                                      • 14-day tourist visa upon arrival
 Arabia
                                                                              for residents of the EU, US,
                                                             Oman             Canada, Singapore, Australia,
                                                                              Japan and Hong Kong
Jeddah
                                                                            • E-visa services www.evisa.gov.bh

                                                                                                                11
DEVELOPING INTERNATIONAL TRADE TIES

• More than 68 trade agreements
• US-Bahrain FTA signed in 2006
 offers huge opportunities
• Financial, industrial, services and
 agricultural 96% duty exempt;
 Tax-free benefits for textiles and
 garments
• Well-regarded legal,
 jurisdictional and social
 environment.




                                        12
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       13
SKILLED LOCAL WORKFORCE

Investing in people….                       is always good for business.
• A bi-lingual workforce that is the most
 skilled, educated in the GCC               • Bi-lingual workforce provides
• Substantial, ongoing investment in         advantage when accessing other GCC
 training Bahrainis; Tamkeen has             markets
 invested BD41million in training 19,000    • Having a local workforce reduces
 Bahrainis with relevant, private-sector     overall labour costs
 skills                                     • Local talent pool minimizes staff
• Providing salary subsidies                 turnover
• 2/3 of financial services workforce are   • Excellent work ethic among local
 Bahraini, of which 37% are women            employees
• High quality financial focused training
 institutes and courses




                                                                                  14
EFFICIENT AND COST EFFECTIVE

• Bahrain's labour productivity was
                                        “Bahrain's labour
  rated by the Conference Board,
                                        productivity rate was 20
  an independent not-for-profit US
                                        per cent higher than
  organisation, as the highest in the
                                        that of Oman, its
  Gulf.
                                        nearest competitor, and
• 40 years of experience for            more than five times
  finance, ancillary and support        above the GCC Average”
  services e.g. lawyers,
  accountants, risk managers.              Growing Beyond Oil Report
                                           The Conference Board, USA, 2009




                                                                             15
TRAINING & TAMKEEN
www.bibf.com.bh | www.tamkeen.bh


• Bahrain Institute of Banking and Finance(BIBF) was
  founded in 1981 and well recognised as the premier
  sector training institute in the region.

• Tamkeen (Labor Fund) offers help in recruitment and
  training of Bahrainis through:
    – Training Support (free training)
      Training course to be chosen by Employer and setup at BIBF
    – Salary Support (subsidizing salaries)
      (50% of salary provided the subsidy does not exceed BD200/month for 2 years)




                                                                                     16
GROWING WORKFORCE

                                                 2008                                                          2009
Total Financial Sector
                                            13,922 employed
                                                                                1.5%                      14,137 employed
Workforce in 2009




Non-Bank financial                                2008                                                         2009
sector jobs*                                 4,340 employed                     19.6%                     5,191 employed




                                                 2008                                                          2009
Insurance sector Jobs
                                            1,378 employed                      10.6%                     1,524 employed

   * Includes: Insurance, money brokers, money changers, investment advisory businesses, capital markets brokers.
    Source: Central Bank of Bahrain, Financial Sector Employment Numbers 2009



                                                                                                                            17
NEW LABOUR REGULATIONS

• Transfer of sponsorship                   Bahrain's Labor Market's Global Ranking*
  without a no objection
  certificate
• Full-automation of work
                                                             35th
  permit applications
• Labor Market Regulatory
  Authority (LMRA): governing
  body with the mandate to
  provide effective, transparent,
  robust, and dynamic solutions
  and services to the local.                                  64 th
 For more info, please visit: www.lmra.bh   *Source: World Economic Forum, Global Competitiveness Report 2009
                                            Note: 133 countries analyzed in the 2009 rankings



                                                                                                           18
HIGH IN GLOBAL ICT RANKINGS
                                            Bahrain's Network Readiness Global Ranking
  • Bahrain enhanced its performance in
    the field of information technology
    uses
  • Bahrain is the highest climber among
    Gulf nations in this year's rankings                        29th
    and over a three-year period, having
    gained 21 places since 2006
  • The report highlights Bahrain's ICT
    and business friendly market
    environment, high individual
    readiness, outstanding government
    readiness and usage, and top-class e-                        37 th
    government services together with
    widespread e-participation
                                             Source: World Economic Forum-Global Information Technology Report 2010
 Source: Gulf Daily News- April 2010         Note: 133 countries analyzed in the rankings



                                                                                                                      19
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       20
THE MOST LIBERAL TAX REGIME IN THE GULF

Bahrain tax rates
                                            Corporate income tax rates in
• No corporate income tax
                                            GCC countries
• No personal income tax                    Percent *
                                                                                                 0-85

• No wealth tax or tax on capital gains
                                                                             0-55      0-55
• No withholding tax
• No death duties or inheritance tax                    0-30
                                                                  0-35
• No restriction on repatriation of
 capital, profits or dividends
                                               0
• Few indirect taxes e.g. 10%
  municipal tax on rents                   Bahrain Oman          Qatar      UAE      Kuwait     Saudi
                                                                                                Arabia

                                          Source: Ernst & Young Worldwide Corporate Tax Report 2009




                                                                                                        21
BUSINESSES CAN BE 100% FOREIGN-OWNED

                                 Types of 100%-owned commercial operations in
 • Companies allowed 100%        Bahrain:
  foreign ownership                   • Limited Liability
 • No ‘free zone’ restrictions        • Single Person Company
 • Individuals may purchase           • Private Joint Stock Company
  land- freehold in prime             • Holding Company
  locations for residential
  usage and accordingly          Other means for international investors to
  obtain permanent residency     register their operations in Bahrain:
 • Companies may purchase             • Public Joint Stock Company (up to 49%
  land-freehold throughout             foreign ownership in any activity / sector)
  Bahrain for commercial              • Branch Office
  usage.                              • Regional Office




                                                                                     22
ONE OF THE TOP 20 FREEST                                                                Rank   Country*
                                                                                        1      Hong Kong
ECONOMIES IN THE WORLD                                                                  2      Singapore
                                                                                        3      Australia
Ongoing reforms and regulatory improvements have
made Bahrain the freest economy in the Arab world, for                                  4      New Zealand
16 consecutive years.                                                                   5      Ireland
                                                                                        6      Switzerland
The index is based on assessment of the following
                                                                                        7      Canada
variables:
    • Business freedom                                                                  8      United States
    • Trade freedom                                                                     9      Denmark
    • Fiscal freedom
    • Freedom from Government                                                           10     Chile
    • Monetary freedom                                                                  13     Bahrain
    • Investment freedom                                                                39     Qatar
    • Financial freedom
    • Property rights                                                                   42     Kuwait
    • Freedom from corruption                                                           43     Oman
    • Labor freedom
                                                                                        46     United Arab Emirates
 Source: The Heritage Foundation / Wall Street Journal Index of Economic Freedom 2010   65     Saudi Arabia
 Note: 183 economies assessed in the 2010 rankings


                                                                                                                      23
QUALITY INSTITUTIONAL ENVIRONMENT


     4 th                       Most favorable tax regime in the world
                                out of 55 leading economies surveyed.


     th                         Lowest cost location to do business in
   12                           the world


   16th                         Most liberalized financial sector

Source: Financial Development Report Rankings, World Economic Forum 2009



                                                                           24
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       25
 BAHRAIN HAS THE LEADING REGULATORY
 ENVIRONMENT FOR FINANCIAL INSTITUTIONS
 IN THE MIDDLE EAST
                                                       Indicators by the World Economic Forum*
Central Bank of Bahrain
                                                                Financial Market                   Effectiveness of
• Supervisory body and the Middle East’s most                    Sophistication                    Bankruptcy Laws
  highly regarded regulator                        Bahrain                                   5.2                            6.3
• Since 2002 has functioned as the single             UAE                              4.3                                6
  regulator for the entire financial system          Qatar                             4.3                                5.8
• The first national regulator in the GCC to be     Jordan                         4                                  5.5
  accepted to the International Organisation of      Oman                              4.5                            5.5
  Securities Commissions(IOSCO)
                                                    Tunisia                        4.1                                5.5
• IOSCO is the world’s standard setting body for   Morocco                   3.2                                      5.4
  securities regulation
                                                     Egypt                     3.6                                  4.8
• Acceptance by IOSCO is preceded by a rigorous
                                                      KSA                          4                            4.5
  assessment of applicants legislative and
                                                   Lebanon                       3.9                          3.9
  regulatory regime.
                                                              Scale is 1-7
                                                              Source: BMA, World Economic Forum; Arab World
                                                              Competitiveness Report (2008)


                                                                                                                           26
LEADING REGULATORY ENVIRONMENT




 5th
             Bahrain’s regulatory environment is the
             fifth best in the world, according to a
             survey of 141 global economies.
             Source: Economic Freedom of the World 2009 Report, Fraser Institute




                                                                                   27
FAIR & ADVANCED LEGAL ENVIRONMENT
• Constitutional monarchy
• Courts based on British Common Law System
• Bicameral parliamentary system and a
  constitutional court, ensuring checks and balances
  on enacted laws
• Bahrain’s Constitution guarantees the right of
  recourse to the courts
• The Administrative Court is empowered to
                                                   =
  adjudicate on all decisions and rulings by
  governmental bodies
• Recently modernised its business and trade related
  laws and regulations to be consistent with the
  requirements of the World Trade Organisations and
  the Free Trade Agreement between Bahrain and the
  United States of America

                                                       28
A FAIR AND OPEN ENVIRONMENT
In January 2010, Bahrain has introduced the
Bahrain Chamber of Dispute Resolution in association with American
Arbitration Association: BCDRA-AAA.
•   BCDRA-AAA provides the region with a ‘best in       The rules governing the chamber are
    class’ international Arbitration Dispute            codified as part of the country’s
    Resolution centre of excellence with the distinct   domestic legislation.
    added advantage of operating an arbitration
    “free zone”.
                                                        The BCDRA-AAA offers its
•   Bahrain has also introduced the new concept of
    statutory arbitration for commercial and            services to:
    financial disputes.
•   Cases that would previously have come before            Bahrain’s legal community
    Bahrain’s domestic courts, where the claim is           International legal firms
    over 500,000 BHD ($1.3 million) and involves an
    international party or a party licensed by the
                                                            Multi-nationals
    Central Bank of Bahrain, is directed to the BCDR-       Governments contracting in
    AAA for a fast, final and binding resolution.            the Gulf and beyond

                                                                                          29
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       30
A COST-EFFICIENT BUSINESS BASE
      1. Average Monthly Salary for General
                                                                 3. Average Premium Office Space Lease
       Manager in a Multinational Company
                                                                           Rates (sq.m/month)
                    $19,725
                              $18,075             $17,500                        $132
 $14,488   14850                        $14,488



                                                                                                               $75

                                                                                           $53
                                                                        45
Bahrain Kuwait       UAE      Saudi Oman          Qatar       $32                                       $35
                              Arabia

     2. Average Return Business Class Return
                 Ticket Fare to UK
                                                            Bahrain Kuwait      UAE      Saudi Oman           Qatar
           $3,812   $3,664
                                                  $3,876                                 Arabia
                              $3,262
                                        $3,005
 $2,501

                                                              Sources:
                                                              1. Annual Salary by Gulf Business 2009*
                                                              2. Travelocity.com 2009
                                                              3. Veritas Investments


Bahrain Kuwait      UAE       Saudi Oman          Qatar
                              Arabia


                                                                                                                      31
A COST-EFFICIENT BUSINESS BASE
                                 Office Rent Comparison 3rd Quarter 2009
Location                         Property                          Rate/Sqm in $ US

Bahrain                          Bahrain Financial Harbour         $29

Dubai, UAE                       DIFC ( Dubai Finance Center)      $128

Doha, Qatar                      Corniche Area                     $228

Abu Dhabi, UAE                   Central Business District         $80



Sources: Better homes, UAE- Doha NAI




                                                                                      32
A COST-EFFICIENT BUSINESS BASE

      Total office occupancy costs per workstation - Middle East

         Riyadh

        Bahrain

     Kuwait City

            Doha

      Abu Dhabi

           Dubai                                                              USD per annum


                    $0           $5,000         $10,000   $15,000   $20,000      $25,000


       Source: DTZ Global Occupancy Cost – Offices 2009




                                                                                              33
BEST VALUE IN THE REGION
 Cost of living index %, Manama=100%                                                             Utilities
                                                                                                     228
                        General Index                                          188                                       200
                                                                                          151                                      168
                             168                                     100
          132      140                131       125       132                                                  53
  100

                                                                  Manama AbuDhabi        Doha      Dubai      Kuwait    Muscat    Riyadh

Manama AbuDhabi    Doha     Dubai    Kuwait    Muscat    Riyadh
                                                                                               Recreation
                           Food                                                                     191
                                                                               148       140                  129       150       138
                  173       187                                      100
                                     142
 100     111                                    113       111

                                                                  Manama AbuDhabi        Doha      Dubai     Kuwait    Muscat    Riyadh

Manama AbuDhabi   Doha     Dubai    Kuwait    Muscat    Riyadh
                                                                                                  Transport
                                                                                         129       132        133
                  Household Supplies                                100        111                                      108       105

                  149       163
         124                         128       130       132
 100

                                                                  Manama AbuDhabi       Doha      Dubai      Kuwait    Muscat    Riyadh

Manama AbuDhabi   Doha     Dubai    Kuwait    Muscat    Riyadh    Source: Economic Intelligence Unit 2008



                                                                                                                                          34
BEST VALUE IN THE REGION



“  … a 3-bed unfurnished
   apartment in the
   medium price range
   costs $1,900 in Manama.
   A similar apartment in
   Doha costs $2,290, while
   in Dubai, such an
                                        “          … To buy a basket of 27
                                                   services in Bahrain – including
                                                   haircuts, phone charges, dry
                                                   cleaning, movie tickets,
                                                   restaurant meals – was $450.
                                                   Significantly lower that its
                                                   peers in the GCC with Doha
   apartment would costs
                                                   and Dubai costing $620 and
   around $3,710 in the
                                                   $890 respectively…




                           ”
   emirate…


       UBS Report
       A study of 73 Global Cities based on the cost of 154 items, August 2009
                                                                                 ”   35
AGENDA

 • Bahrain: Vision & Experience
 • Market Access to Gulf Economies
 • The most educated, skilled workforce in the Gulf
 • The Middle East’s freest business environment
 • World Class Legal and Regulatory Environment
 • Cost competitiveness
 • Open, democratic society; Highest quality of life




                                                       36
LIVING IN BAHRAIN
 • A rich, authentic culture
 • Uniquely integrated society between nationals and expats
 • Lively restaurant / café culture
 • Open, tolerant and welcoming society
 • Affordable, safe, high quality living for families




                                                              37
LIVING IN BAHRAIN




                           Organizing School for




                                                                                 Madee Local Friends

                                                                                                       Local Community
                                                                Making Friends




                                                                                                                                                 Working Hours
                                                                                                                         Entertainment
                                                   Healthcare




                                                                                                                                                                               Family Life
                                                                                                                                                                 Social Life
                                 Children




                                                                                                            Groups
                 Overall



Bahrain           5             5                    1             5             20                          1           13                         1               1             7
Saudi Arabia     14           14                   11           14               24                          8           25                         7            15            10
UAE              18           22                   12              9             25                        23               8                    14              17            15
Qatar            26           25                   13           16               26                        22            26                      19              23            16
United States     8           12                   24           15                7                         4             3                      18              22            17
France            7            8                   17           18                9                         5            17                      12              12             4
Japan            16           20                   25           22               10                         7            12                      22              24            23
United Kingdom   23           24                   26           20               13                        20             1                      16              19            25

                                                                                                                                         Source: HSBC, Expat Explorer Survey 2009




                                                                                                                                                                                             38
     Tax Regime
0%   Bahrain has the most liberal Tax regime in the Gulf



     Innovation
#1   Bahrain’s Capital Market featured the 1st Sukuk
     Issuance in the region.



     Regulation
#1   Bahrain has the leading regulatory environment for financial
     institutions in the Middle East.



     Transparency
#1   Bahrain Mumtalakat – the kingdom’s sovereign wealth fund is
     ranked 1st as the most transparent SWF.


                                                                    39
      Local Workforce
#1    The Kingdom has always been open to key workers from
      around the world too. But the availability of a highly skilled
      local labor pool has particular benefits for businesses, who
      can thereby reduce spend on expatriate packages and build a
      long-term sustainable local business model.



      Cost Competitiveness
#1    The cost of doing business is significantly lower in Bahrain
      than elsewhere in the region. The cost of living is low and
      wages are competitive, ensuring that businesses who wish to
      employ expatriate labor can do so more cost-effectively than
      in other Gulf states


      Free Economy
#13   Bahrain is ranked 13th among the freest economies
      in the world.


                                                                       40
           Strong Financial Sector
27%        The Financial Sector’s contribution to the 2008 GDP
           stands strong at 27%




           Foreign Ownership
100%       Companies established in Bahrain are allowed to
           have 100% foreign ownership



           Diverse Market
400        Bahrain has over 400 registered financial service entities.




           Experience
40   yrs   Bahrain has an established financial sector with 40
           years of experience


                                                                         41
      Access
20    Bahrain has access to Saudi Arabia; the GCC’s largest economy
      by far, and that’s simply through a 20km causeway. Bahrain
      also brings cultural access to all other GCC countries.


GMT   Central Location
      Bahrain is conveniently located at a central point between
 +3   East, West. It is in the middle of the world time zones.



      International Ties
65    Bahrain is very keen on developing its international trade
      relations with more than 65 trade agreements and a free
      trade agreement with the USA.




℗     Private Sector Driven
      The Private Sector is taking the initiatives to lead Bahrain’s
      economy into higher levels.


                                                                       42
For 30 years, Bahrain has been the first choice as
the region’s hub for international banks
operating in the Gulf
Examples for regional and
international FIs in Bahrain




                                                     43
FACILITATIONS TEAM

 • Our facilitations team will coordinate with government and non-
   government entities to speed and smoothen your business
   registration application

 • The EDB will also provide you with dedicated representatives who
   will coordinate your license application with the Central Bank of
   Bahrain

 • The Bahrain Investor Centre (BIC) is a state-of-the-art one stop shop
   with all the ministries and other entities involved in the
   incorporation process gathered under one roof through a user
   friendly interface to provide a customer focused service which is
   based on the propositions of “no wrong door” and “single visit”


                                                                           44
THANK YOU




Bahrain Economic Development Board
13th Floor, Seef Tower
PO Box 11299, Manama
Kingdom of Bahrain



Tel: + 973 1758 9870
Fax: + 973 1758 3330
E-Mail: invest@bahrainedb.com
Web: www.bahrain.com


                                     45
Optional Inserts
Asset Management
GCC PRIVATE WEALTH

               Billion on-shore
 $800          (GCC Banking Deposits)



 $1.6          Trillion Off-Shore


      GCC Asset Management Industry sized
      between $90-100 billion of which GCC equities
      account for around $10-20 billion

                                                      48
GROWING CLIENT BASE




  Source: CapGemini Asia Pacific Wealth Report 2008



                                                      49
HNWI FORECAST

                  Forecast of HNWI in 2012 at the global growth rate (7%)
                                                (in USD Trillions)




   Source:
   CapGemini Lorenz Curve Analysis, 2008,
   CapGemini/Merrill Lynch 2008 World Wealth Report



                                                                            50
ASSET MANAGEMENT: Regulation
 In May 2007 the Central Bank of Bahrain (CBB) issued a new regulatory
 framework to govern Collective Investment Undertakings (CIU’s) with a key
 objective of widening the range of schemes permitted.

 The new framework provides a more diversified range of CIU’s including :
     • Hedge Funds
     • Derivatives
     • Alternative investment vehicles

 By allowing single asset class holdings to be domiciled and offered in
 Bahrain, the range of products available has been broadened.




                                                                             51
ASSET MANAGEMENT: Regulation

 The new framework allows for the authorization of two types of CIUs:
    • Retail CIUs: which may be sold to anyone but are subject to stringent
      requirements aimed at investor protection, such as restrictions on types of
      assets held in the CIU and various limits on concentration risks.

    • Expert CIUs: subject to a minimum US$10,000 investment rule, and which
      may only be sold to expert investors (as verified by the institution selling the
      CIU, and defined in the rules – one criterion being the investor must have
      financial assets of US$100,000 or more to invest). Expert CIUs are also
      regulated, but may fully invest in a wider range of assets (including real estate
      and commodities), and are subject to fewer risk concentration requirements.
    • Exempt CIUs: Exempt CIUs are largely unregulated CIUs that may be offered
      only to accredited investors, and impose a minimum initial investment of USD
      100,000 (or equivalent in foreign currency).



                                                                                          52
ASSET MANAGEMENT: FACTS



   2,724      Registered funds (June ‘10)



    137       Bahrain domiciled schemes



    59       Local Islamic Funds




                                            53
Islamic finance
ISLAMIC FINANCE: PIONEERING ROLE
Bahrain has seen a number of 'firsts' develop around Islamic finance:
• 2001: Bahrain became the first country in the world to develop and
  implement regulations specific to the Islamic banking industry.
• 2001: Sukuk bonds were effectively pioneered in Bahrain; the CBB became
  the first central bank in the world to develop and issue them.
• 2005: the first ever comprehensive regulatory framework specific to
  Takaful and re-Takaful companies was introduced. This rulebook provides
  a robust, focused framework for the industry.
• 2008: The CBB declared that it is set to launch the Islamic Sukuk Liquidity
  Instrument (ISLI) aimed at providing Islamic financial institutions a much-
  needed liquidity management tool. ISLI has been designed to enable
  financial institutions, both conventional and Islamic, to access short term
  liquidity against Government of Bahrain Islamic Leasing (Ijara) bonds
  (Sukuk), issued by the CBB.


                                                                                55
INVESTING IN THE FUTURE OF ISLAMIC FINANCE
ISLAMIC FINANCE HUMAN CAPITAL
• As Bahrain’s vision preaches for sustainability, fairness and
  competitiveness, it is very important to note that Bahrain’s key policy is to
  invest in human capital to create an advanced and competitive landscape
  for its people.
• The Central Bank of Bahrain (CBB) has instigated Bahrain's Waqf Fund for
  Research, Education and Training is working with local and international
  organisations to enhance the knowledge of those already employed in the
  sector and to help channel those about to embark on a professional
  career into the Islamic finance industry.
• Bahrain also introduced the first Masters Program in Islamic Finance
  through DePaul University, Chicago in collaboration with the Bahrain
  Institute for Banking and Finance.



                                                                                  56
ISLAMIC FINANCE INSTITUTIONS IN BAHRAIN

  6   Islamic Retail Banks
 21   Islamic Wholesale Banks
  9   Islamic Investment Firms
 17   Takaful Firms
  3   Islamic Financing Companies

                                          57
ISLAMIC FINANCE ORGANIZATIONS
In addition to the numerous Islamic financial institutions active
in its financial sector, Bahrain also plays host to a number of
organizations central to the development of Islamic finance,
including:
  •The Accounting and Auditing Organisation for Islamic
    Financial Institutions ('AAOIFI');
  •Liquidity Management Centre ('LMC');
  •The International Islamic Financial Market ('IIFM');
  •The Islamic International Rating Agency ('IIRA').




                                                                    58
REACHING OUT TO THE WORLD
•   June 2010: The Bahrain Economic Development Board (EDB) and Greater Paris Investment
    Agency (GPIA) signed an MOU to jointly promote France and Bahrain as regional business
    hubs and facilitate bilateral investments which will cover the financial community including
    Islamic finance.
•   May 2010: Bahrain signed a number of agreements and a MoU with Bermuda, Seychelles
    and International Bank for Reconstruction and Development (IBRD), to avoid double taxation
    and develop and strengthen co-operation in financial and professional services.
•   May 2010: Bahrain was host for the IFSB Summit in which –and for the first time -
    Luxembourg has taken part in the annual summit as a member of the event. Malaysia also
    participated actively in the summit with a separate showcase.
•   January 2010: Bahrain Financial Exchange inked an MoU with Bursa Malaysia Berhad to
    develop a commercial agreement between the two exchanges and provide financial products
    to Islamic market participants and strengthen bilateral ties between both organizations.
•   December 2009: Bahrain inked an agreement with Singapore with the intent to boost the
    growth of Islamic finance. The agreement is designed to improve supervisory cooperation
    and information-sharing between the two countries.




                                                                                                   59
BAHRAIN’S ISLAMIC FINANCE OFFERING:
  • Established position as the leading Islamic Finance
      Center;
  •   Decades of experience with both local and
      international firms based in Bahrain focused on
      domestic and international distribution of
      products and services;
  •   World Class regulatory/legal framework;
  •   The center for global Islamic associations and
      governing bodies;
  •   High quality and cost efficient business center;
      and
  •   Competent and experienced local workforce.

                                                          60
Takaful
Takaful: Global Takaful Continues to Grow




                                            62
Takaful: GCC Highest Gross Takaful Contributor




                                                 63
Takaful: High Retakaful Ratio in the GCC




                                           64
Takaful: MENA Diverse Takaful Industry




                                         65
Takaful: CBB- the Most Enabling Regulatory Body




                                              66
Takaful: CBB- Robust and Efficient Framework




                                               67

				
DOCUMENT INFO