Oxford Business Group - Bahrain 2012 Report

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Country ProfileIndustry, finance, energy, transport & tourism key sectorsPolitics dominates international coverage in 2011Land area expanding due to ongoing reclamation effortsHome to a diverse, multicultural population of 1.23m

COUNTRY PROFILE

The country has long pursued a policy of economic diversification

As the Arabic word for “two seas”, Bahrain’s name refersto the sweet-water springs that fill the Kingdom’saquifers and the salty seas that surround the island.HISTORY: The Kingdom of Bahrain is home to one ofthe region’s oldest civilisations, the Dilmun civilisation,which dates back nearly 6000 years. Throughout his-tory, Bahrain attracted the attention of empires andnations due to its strategic position in the Gulf. Conse-quently, the country was influenced by a number of pow-ers including the Persians, Sumerians, Assyrians, Arabs,Babylonians, Portuguese and the British. Bahrain wasimportant to ancient Mesopotamia because it con-nected the lands of the present day Middle East andestablished sea lanes. Thus, the country thrived as acommercial centre where merchants founded settle-ments that formed the backbone of the economy.GOVERNMENT: Bahrain declared independence fromthe British in 1971. Between 1961 and 1999, Bahrainwas ruled as an emirate by the late Sheikh Isa bin HamadAl Khalifa. On his death in 1999, Sheikh Hamad bin IsaAl Khalifa, his son, became the island’s ruler and set inmotion a reform programme.

In 2001, the National Action Charter was published,setting out key principles for the government of Bahrain,including the establishment of a constitutional monar-chy, parliamentary elections, and universal suffrage formen and women. The charter was ratified by a nation-al referendum with 98.4% of voters in favour of trans-forming the hereditary emirate into a constitutionalmonarchy, thereby establishing the current Kingdomof Bahrain ruled by King Hamad bin Isa Al Khalifa.

The executive government is headed by the primeminister, Prince Khalifa bin Salman Al Khalifa, who hasbeen in place since 1971, making him the world’slongest-serving prime minister. Executive authority isvested with the King and the Council of Ministers (thecabinet), which is appointed by the King. Crown PrinceSalman bin Hamad Al Khalifa is the deputy supreme com-mander of the Bahrain Defence Force as well as thechairman of the Bahrain Economic Development Board

(EDB), a state body tasked with formulating the coun-try’s long-term development strategy.

The National Action Charter modernised the legisla-tive side of government, and the parliament that wassuspended in 1975 was reconstituted. The Bahrainiparliament, known as the National Assembly, is madeup of a lower house, the Council of Representatives,which is elected by universal suffrage, and an upperhouse, the Shura (consultative) Council, which is appoint-ed by the King. The National Assembly consists of 80seats; 40 elected members sit on the Council of Rep-resentatives and 40 appointed members sit on theShura Council. The upper parliament has the power toblock legislation from the lower parliament. Electedmembers of the lower parliament serve four-year terms.

The most recent elections were held in October 2010.Special elections were held in September and October2011 to fill the 18 seats vacated by members of the AlWefaq party, resulting in the largest number of womenever to be elected to the Council of Representatives,with four women now part of the 40 members. Al Wefaqdid not participate in the elections. The Kingdom alsoannounced in May 2012 it would join Saudi Arabia ina closer political union, with the two states collaborat-ing on foreign, security and economic policy.POLITICS: Protests flared up throughout the Kingdomin February and March of 2011, and demonstrationscontinued for the remainder of the year and into 2012.In response to the earlier political unrest, a NationalDialogue was held on July 1, 2011 to engage the dif-ferent factions of Bahraini society and to discuss fur-ther political, economic, social and legislative reforms.

This concluded with a number of recommendationsfor restructuring, including recognising the importanceof further diversification; encouraging the role of theprivate sector; evaluating options for redirecting sub-sidies; placing new levies for indirect and corporatetaxes; resolving the issue of the high increase of guestworkers; and supporting innovation programmes. Oneoutcome of the dialogue was a set of constitutional

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An island of commerceLeveraging natural strengths and strategic advantages

www.oxfordbusinessgroup.com/country/Bahrain

COUNTRY PROFILE

amendments that make it easier to question and removeministers and withdraw confidence in the Council ofMinisters. According to a televised speech by the King,the purpose of the these amendments, ratified in May2012, is to increase dialogue on reform.

Following the conclusion of the dialogue, the Kinglaunched the Bahrain Independent Commission ofInquiry (BICI) on June 29, 2011 to investigate the polit-ical unrest of earlier that year. The commission’s aimwas to determine if the events that began in February2011 had involved violations of international humanrights law and to provide recommendations for politi-cal stability. The commission was directed to issue a com-prehensive account of the events and describe anyacts of violence that occurred by highlighting all theparties involved and investigating allegations of policebrutality and violence by demonstrators. The official BICIReport was released on November 23, 2011 with numer-ous recommendations, and the National Commissionthat was tasked to follow up on the suggestions releasedits final report on March 20, 2012. Nevertheless, theopposition has claimed that the government’s reformmeasures are taking too long to implement. ECONOMIC OVERVIEW: Bahrain has set many region-al precedents; among others, it was the first countryin the Middle East to discover oil in 1932. This sparkeda major economic overhaul as the petroleum industrydeveloped, catalysing a process of modernisation thatdiverted the Kingdom’s economy away from tradition-al mainstays such as pearl diving and fishing. Mindfulof its finite hydrocarbons reserves, Bahrain pursued anearly policy of economic diversification. This policyformed the basis for the Economic Vision 2030, a devel-opment plan to improve Bahraini living standards. Thecampaign’s framework, the National Economic Strate-gy, highlights the path to a stronger economy throughgrowth in the private sector as the government con-tinues to invest in infrastructure and human resources.

Bahrain has successfully developed its industrial anddownstream sectors, and is home to one of the largestaluminium smelters in the world, Aluminium Bahrain(Alba). In 2011, overall GDP at constant prices had anannual growth rate of 2.2%, with the oil sector grow-ing at 3.4% and non-oil sector growing at 2.1%.

The Kingdom ranked 38th in the World Bank’s 2012“Doing Business” report, and for the third time ranked37th in the World Economic Forum’s “Global Compet-itiveness Report” in 2011. Bahrain was also notablyranked the 12th freest economy in the world and firstin the Middle East and North Africa (MENA) region,according to the 2012 Index of Economic Freedom.ENERGY: Bahrain’s energy sector is a major source ofgovernment revenue. In 2011 oil accounted for approx-imately 13% of GDP and 75% of government revenues.Onshore reserves discovered in the Awali Bahrain Fieldyielded some 75,000 barrels per day (bpd) at its peakin the 1970s. Output has since declined, falling to some32,000 bpd in 2010. Forecasts suggest that by 2015,Bahrain will account for 0.6% of Middle East regionaloil demand while providing 0.2% of supply. Gas produc-tion in Bahrain totalled some 552bn cu ft during 2011.

FINANCIAL SERVICES: The financial services sector hasbeen a great beneficiary of the economic diversifica-tion programme. Sector assets amounted to $195.5bnas of January 2012, contributing 25% of GDP. Therewere 415 registered financial institutions operating inthe Kingdom as of February 2012, up from 409 in 2011,demonstrating that the regulatory system in placehelped to sustain the industry in 2011. As of 2009, thesector employed roughly 15,000 people, 34% of whomwere foreign nationals. Bahrain is also a major centrefor offshore banking and funds in the region, with 2789authorised funds registered as of February 2012. ISLAMIC FINANCE: Bahrain is a major centre for Islam-ic finance, and the sector’s assets totalled $24.4bn asof January 2012. The Kingdom is home to a number ofregulatory agencies and institutions that help to devel-op standards and guidelines for the Islamic financeindustry, including the Accounting & Auditing Organi-sation for Islamic Financial Institutions (AAOIFI), theInternational Islamic Financial Market (IIFM), the Islam-ic International Rating Agency (IIRA), and the GeneralCouncil for Islamic Banks and Financial Institutions(CIBAFI). As of January 2012, the country was home to26 Islamic banks as well as 18 takaful firms, which pro-vide sharia-compliant insurance. TRANSPORT: Given its strategic maritime location andproximity to Saudi Arabia – the largest market in theMiddle East – Bahrain has successfully established itselfas a transportation hub for the northern Gulf region.The country’s new Khalifa Bin Salman Port, the BahrainInternational Airport and the overland route to SaudiArabia via the King Fahd Causeway helped establishthe nation as a focal point for transport and logistics.Expansion of the international airport, ongoing infra-structure improvements and the planned Qatar-BahrainCauseway will serve to further boost the Kingdom’scompetitiveness as a transportation hub. TOURISM: Bahrain has a thriving tourism industry thatattracts visitors from both the region as well as furtherabroad. Tourists are drawn to Bahrain’s traditionally lib-

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THE REPORT Bahrain 2012

From Islamic finance to offshore banking, financial services is a major contributor to the local economy

COUNTRY PROFILE

eral atmosphere, rich history and culture. The Kingdomoffers a wide range of attractions, including historic mon-uments like the Al Khamis Mosque, which dates backto 692 CE, and the modern Bahrain International Cir-cuit, host of a 2012 Formula 1 race.

The tourism sector was adversely affected by thepolitical environment in 2011 with a major decline invisitors and the cancellation of that year’s Bahrain For-mula 1 Grand Prix. However, tourism numbers improvedin 2012, and the meetings, incentives, conventions andexhibitions segment is back on track. Bahrain was des-ignated Capital of Arab Culture in 2012 and Capital ofArab Tourism in 2013. Both should give the sector aboost as visitors arrive for the scheduled fanfare. GEOGRAPHY: The total inland area of Bahrain is con-stantly expanding thanks to land reclamation projects.In 2011, Bahrain grew to 765.3 sq km, up from 759 sqkm in 2010. The national archipelago consists of 33islands, and the four main islands are Bahrain Island, AlMuharraq Island, Sitra Island and Umm An Nasan Island,which make up approximately 95% of the total land area.These islands are connected through a series of cause-ways, while more remote islands can be reached by boat.

Saudi Arabia is Bahrain’s closest neighbour to thenorth-west and across the Gulf of Bahrain, and theyare linked by the 25-km King Fahd Causeway. Qatar lies28 km off the south-eastern coast. The two countrieswill eventually be linked by a causeway, which will bethe world’s longest fixed link, extending some 40 km.

The capital Al Manamah, colloquially known as Man-ama, sits on the northern portion of the main island,with a population of roughly 200,000. Muharraq is thesecond-largest island and is home to the country’s sec-ond-largest city, which bears the same name. Othersignificant cities include Riffa, Sitra and Isa Town.

At 122 metres, Jebel Al Dukhan is the Kingdom’shighest point. Most of the islands are low-lying desert,and agrarian land is scarce, with only 2.82% arable. CLIMATE: Bahrain has two seasons: a hot and humidsummer and a mild winter. Summer begins around Apriland continues through October. The average temper-ature in the summer is 36°C, with highs reaching 48°C.Sandstorms are not uncommon during the mid-sum-mer months. Winter is from November to April with tem-peratures ranging from 15°C to 24°C, and coolestbetween December and March when the northerlywinds prevail. Average annual rainfall is 77 mm.NATURAL RESOURCES: Oil, gas, fish and pearls areBahrain’s most abundant natural resources. Due to thedesert climate, agricultural production is limited. Sincethe discovery of oil in the 1930s, traditional industriessuch as fishing and pearling have contributed signifi-cantly less to overall output but remain important areasfor employment and due to their traditional cultural sig-nificance. Although the Kingdom was the first of theGCC states to discover hydrocarbons, it has smallerquantities of oil and gas than its neighbours. The gov-ernment has accelerated exploration efforts and is

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COUNTRY PROFILE

preparing to boost refining capacity. In 2010 produc-tion from the onshore Bahrain Field was raised for thefirst time in 30 years thanks to enhanced oil recoverytechniques. The Kingdom recently awarded a tenderfor deep gas exploration, and drilling has begun in off-shore blocks alongside an increase in onshore explo-ration. Bahrain also shares the yield from the offshoreAbu Safa field with the Kingdom of Saudi Arabia.

Water is a limited and dwindling resource in Bahrain.The main aquifer, Dammam, is becoming saline fromoveruse. As a result, Bahrain relies on desalinationplants to provide most of its potable water.POPULATION: The country’s population is diverse andmulticultural and home to a variety of different ethnic-ities. The 2010 census puts the total population of theKingdom at 1.23m, with 568,400 nationals and 666,200non-Bahrainis, who make up 54% of the total populace.Approximately 51.1% of the population are Bahrainicitizens, GCC citizens or hail from other Arab coun-tries; 45.5% are from Asia or Oceania; 1.6% are from Africaand the remaining 1.3% are from Europe and the Amer-icas. Males account for around 62% of the total, whichcan be attributed to the sizable expatriate workforce.An estimated 88.7% of the population live in urbanisedareas, with 329,510 individuals residing in the CapitalGovernorate, home to the capital, Manama. LANGUAGE: Arabic is the official language of Bahrain,and Bahraini Arabic, similar to Khaleeji (Gulf) Arabic, isthe most common spoken form. English is widely usedand is often the de facto language of business giventhe ethnic and linguistic diversity of the country’s pop-ulation. Road signs are usually in English and Arabic,and most documentation is available in both languages.English is a compulsory second language in local schools,and Bengali, Farsi, Hindi, Malayalam, Tagalog and Urduare also well represented in society.RELIGION: Islam is the official religion of Bahrain. Some98% of Bahraini nationals are Muslim of either Shia orSunni following; however, the approximate percent-age of each sect is widely disputed as there are no sta-tistics readily available. The Kingdom is one of the mostreligiously tolerant states in the Gulf region and allowsfor religious freedom, evidenced by the presence ofmosques, churches, temples and synagogues through-out the country. According to the 2010 census, 70% ofthe total population, including non-nationals, are Mus-lim. Of the non-nationals, 54% are non-Muslim includ-ing Bahais, Buddhists, Christians, Hindus and Sikhs.Bahrain is also home to a small indigenous Jewish pop-ulation that is represented in the government.WOMEN: Bahrain also values the role that women playin society. Women have actively contributed to thecountry’s development since the late 1920s when theywere allowed to attend schools, receive formal educa-tion and vote in municipal elections. Women’s rightswere further supported with the establishment of theNational Action Charter and the Supreme Council forWomen (SCW) in 2001. The SCW promotes the statusof women, awareness of their capabilities, ensures theirrights are protected and helps tackle various problemsin society. Bahrain was the first GCC state to allow

women to participate in national elections, both asvoters and candidates. It was also the first state in theGulf to elect a female member of parliament, and thereare currently four elected female members serving inthe Council of Representatives. EDUCATION: As a leader in the field of education,Bahrain was the first country in the Gulf to open a pub-lic school for males in 1919 and the first to provideschooling for females in 1928. Compulsory elementaryeducation for children was introduced in 2001. TheWorld Economic Forum’s “Global CompetitivenessReport 2011-12”, issued in October 2011, highlightedBahrain’s high rates of both primary and secondaryenrolment (97.3% and 96.4%, respectively) as well asthe quality of education and availability of researchand training services. Tertiary enrolment has increasedthreefold over the course of the last decade, and womenaccount for 70% of total students. The governmentpays all educational costs for Bahraini citizens, and11% of total government expenditure is earmarked foreducation. Bahrain’s literacy rate, which is approximate-ly 91.4%, is one of the highest in the region.

Recent government programmes meant to furtherimprove education include teacher training schemes,a new polytechnic college, improvement of upper-sec-ondary vocational programmes and a quality assur-ance initiative to raise the accreditation standards. HEALTH CARE: Bahrain has played a vital role in devel-oping the region’s health care. The Kingdom is hometo the region’s oldest hospital, the American MissionHospital (AMH), established in 1902. Until the late1940s, AMH provided health care for both Bahrainisas well as neighbouring populations, including Saudis,who would travel to the island nation by boat for care.

Health care is completely subsidised for Bahraininationals. There are 13 private hospitals and 11 gov-ernment hospitals, including the recently opened KingHamad University Hospital in 2012. Health care con-tinues to be a central focus as the government strivesto keep up with the significant growth in population.

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Infrastructure upgrades should cement the country’s status as a transport hub for the northern Gulf

COUNTRY PROFILE VIEWPOINT

King Hamad bin Isa Al Khalifa

The BICI Report deals with controversial matters ofimportance. The commission has sought to establishthe true facts of a period of painful unrest, which hasaffected all of Bahrain. The commission understoodthe unprecedented challenges faced by our authori-ties. They have recognised the need for our authori-ties to re-establish public order in the face of violenceand intimidation against ordinary people as well asagainst the nation’s essential institutions. At the sametime, they have also identified serious shortcomings onthe part of some organs of our government, particu-larly in failing to prevent instances of excessive forceand of the mistreatment of persons placed under arrest.

Some may wonder why we asked a commission offoreign experts to examine the events of February andMarch 2011 and their subsequent ramifications. Theanswer is that any government which has a sinceredesire for reform and progress understands the ben-efit of objective and constructive criticism.

There are many examples of this around the world.For example, in Europe, we see that leading nationalgovernments are routinely criticised by external insti-tutions which they have themselves created. Yet the gov-ernments of these countries do not denounce theEuropean Court of Human Rights. They do not protestor boycott the judges who criticised them. To the con-trary, they are grateful to the court for having identi-fied the ways they must improve if they are to be inharmony with international law and morality. Nor doesthe international community conclude that these areoppressive governments. They are seen to follow a pathof wisdom, acknowledging they benefit from neutralinvestigations and from trusting their own capacity touse criticism constructively in their people’s interest.

We are determined to ensure that the painful eventsour beloved nation has experienced are not repeated,but that we learn from them, and use our new insightsas a catalyst for positive change.

Even before receiving the BICI Report, we have intro-duced proposals to amend our laws to give greater

protection to the valuable right of free speech and toexpand the definition of “torture” to ensure that all formsof ill treatment are covered by our criminal laws. Bothof these proposals would place our laws in full conform-ity with international human rights standards. We haveaddressed issues of due process in criminal trials, in par-ticular for the medical professionals. We have reviewed,and are continuing to review, the circumstances of jobdismissals and expulsions from educational institu-tions. In addition to retrials and reinstatement, affect-ed persons have access to many remedies, includingthe newly established Victims Compensation Fund.

The BICI Report is lengthy and detailed. We muststudy it with the care it deserves. As the first step, aworking group of government members conducted anin-depth reflection on the findings and recommenda-tions. This working group will then urgently propose con-crete responses to the recommendations. We intendto waste no time in benefitting from this report. It pro-vides an historic opportunity for Bahrain to deal withmatters that are both serious and urgent. Officials whohave not been up to their task must be held account-able, and will be replaced. Above all, we must conceiveand implement reforms that satisfy all segments of ourpopulation. That is the only way to achieve reconcilia-tion and to heal the fractures in our society. In order toensure there is no return to unacceptable practices oncethe commission has left Bahrain, we have decided toengage with international organisations and eminentindividuals to assist and advise our law enforcementagencies, and to improve their procedures.

We believe that the release of this report has openeda new page in history, which has been made possibleby the grace of God and because we have had the con-fidence to resort to an objective and impartial body.Again, the nations of Europe are routinely held toaccount before the European Court in Strasbourg. Thatcourt, through its judgements, has set the standard formodern international human rights. The same is trueof the Inter-American Court of Human Rights in Costa

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Our highest objectiveKing Hamad bin Isa Al Khalifa on the report of the Bahrain IndependentCommission of Inquiry (BICI)



Rica. The whole world benefits from the jurisprudenceof these courts. This shows us there is something miss-ing. Surely, the Arab nations, with our ancient transi-tions of fairness and justice, also have something to con-tribute. Surely, we too need to show that our officialsare subject to a higher law, and that we can be proudof our traditions of respect for human rights.

Bahrain was an immediate supporter of the ArabCharter of Human Rights 15 years ago, but in truth thistext has not created a system like those of Europe andthe Americas. I will propose to our fellow Arab statesthat we now move concretely toward the creation ofan Arab Court of Human Rights to take its proper placeon the international stage.

Bahrain assumes its international responsibilitiesseriously. Indeed, it has taken the initiative to contributeto collective international action by providing facilitiesfor multilateral organisations. In 2009, during the vis-it of Ban Ki-moon, secretary-general of the UN, we ded-icated a significant plot of land in our capital, Mana-ma, to serve the community of the UN; it now housesa regional office of the UN Development Programme.We would welcome other UN agencies, perhaps, forexample, by the establishment of a regional office ofthe UN Office on Drugs and Crime.

Such international cooperation will of course notreplace national initiatives. We previously announcedthe establishment of the National Institution for HumanRights as an independent body possessing its ownorganic law, to operate in accordance with the Paris Prin-ciples, which embody international human rights stan-dards relevant to functioning national institutions.

As for the government response to the report’s find-ings and recommendations, I say again that they involvefundamental issues, and must be dealt with urgently.

All of this being said, we cannot fail to extend ourgratitude to our armed forces and law enforcementagencies who restored public order in the face of intim-idation and violence; to our GCC allies who participat-ed in helping protect key installations by deploying the

Peninsula Shield Force, without any confrontation withcivilians; and to the multitude of ordinary Bahrainiswho took a stand against the forces of violence andsectarian division in our kingdom.

We have every sympathy for those who sincerely andpeacefully seek reforms within a pluralistic societywhere the rights of all are respected, but not for thosewho seek to impose totalitarian rule. Our desire for lib-eral reform goes hand in hand with our deep disappoint-ment, after having extended so many times the handof friendship, towards the Islamic Republic of Iran, whichwith the around-the-clock broadcasts in Arabic givenby Iranian state-controlled radio and television sta-tions, incited our population to engage in acts of vio-lence, sabotage and insurrection. Iran’s propagandafuelled the flames of sectarian strife – an intolerableinterference in our internal affairs from which Bahrainhas suffered greatly. As the chair of the commissioncorrectly said, the government of Bahrain is not in aposition currently to provide evidence of links betweenIran and specific events in our country. But this prop-aganda, an objective fact to be observed by all who haveeyes and ears and comprehend Arabic, not only direct-ly challenges our country’s stability and sovereignty, butalso poses a threat to the security and stability of theGCC countries. We hope that the Iranian leadership willreflect and abandon this policy of enmity and discord.

We affirm our commitment to ensuring the safetyand security of our nation and its people, and our com-mitment to reform and to the rectification of errors inall transparency. We urge all our people to reflect upontheir own attitude and intentions, to address their mis-takes and to do their civic duty to contribute to nation-al unity within a community of tolerance. Our highestobjective, after pleasing God, is to promote brother-hood, harmony and tolerance amongst our people,within the environment of a pluralistic, cohesive andprosperous society; a society guaranteeing the rule oflaw and human rights; a society ensuring the tranquilpursuit of opportunities and fulfilment for everyone.

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COUNTRY PROFILE INTERVIEW

Princess Sabeeka bint Ibrahim Al Khalifa, Wife of the King, andPresident, Supreme Council for Women

How has the role of women in Bahraini politics pro-gressed following the recent elections?PRINCESS SABEEKA: Bahraini women’s progress inpolitical life started in 2001, after King Hamad bin IsaAl Khalifa announced reforms and a political moderni-sation process. Support for women from the leader-ship and the people is evident in the overwhelming98.4% vote in favour of the National Action Charter,which ultimately led to an increase in the representa-tion of Bahraini women internationally and locally inministerial and decision-making posts. The charter wasreflected in the constitutional articles that guaranteedthe participation of women in political life and publicservice while preserving a balance between their famil-ial roles and their work in society. It also emphasisedthe importance of ensuring the principles of equalityand justice. The SCW was very aware from the outsetof the need to launch special programmes to political-ly empower women, encourage them to exercise theirrights and present them as a valuable and influentialforce in the decision-making process.

The recent increase in the number of women in thelegislative assembly (four women were newly electedto the Council of Representatives, and 11 women wereappointed to the Shura Council) is considered a signif-icant boost to women’s contribution to political life inthe Kingdom of Bahrain. This rise further proves theamount of support that Bahraini women receive todayand the trust they have earned in their capability to con-tribute to the national development in different fields,particularly in issuing legislation related to women,family and society as a whole.

Where do you see the greatest opportunities forwomen to enter the workforce to further acceler-ate economic development in the Kingdom?PRINCESS SABEEKA: As a result of specialised pro-grammes, Bahrain has been able to decrease the rateof unemployment amongst women and men. The SCWis very keen to contribute to this effort by offering

comprehensive programmes aimed at the economicempowerment of women to create new opportunitiesfor them in cooperation with the concerned organisa-tions in the Kingdom. We have recently launched sev-eral projects to assist low-income families to start theirown businesses, taking into consideration the need tomake new business choices that are compatible withmarket demand. Since then, we have succeeded inattracting a significant number of women from differ-ent areas of the country to participate in these eco-nomic empowerment programmes.

Increasing the number of Bahraini women entrepre-neurs in different areas is a great step forward towardseconomic empowerment; however, there are manyother opportunities available to Bahraini women thatcan contribute to both personal gain and the econom-ic development of the country. Opportunities in the fieldof medicine, law, architecture and consultancy arealways available to women with the right level of edu-cation, training and guidance. Therefore, by develop-ing long-term plans to offer the right tools and skillsto Bahraini women, in accordance with the country’seconomic vision, the SCW will be better able to empow-er women and simultaneously strengthen the econo-my of the Kingdom of Bahrain.

Why is the development of small and medium-sizedenterprises (SMEs) important for creating oppor-tunities for women?PRINCESS SABEEKA: SMEs offer a certain type ofeconomic independence for Bahraini women that allowthem to play an important role in developing the nation-al economy. These businesses can also further devel-op when the proper platform for growth is provided.In the Kingdom, many public and private organisationssuch as Tamkeen, Bahrain Development Bank, UNIDOand Ebdaa Bank are strategic partners in implement-ing economic empowerment programmes for womenwith the council. There are also a number of examplesand success stories of women who managed their own

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Ensuring equalityOBG talks to Princess Sabeeka bint Ibrahim Al Khalifa, Wife of the King,and President, Supreme Council for Women (SCW)


COUNTRY PROFILE INTERVIEW

businesses and, today, are regional businesswomen.Such projects, if sustained, should allow women to par-ticipate in developing the economy while controllingcapital and managing their lives.

The SCW is currently working on an economic empow-erment programme using a comprehensive economicsystem, either by administering training programmesand providing qualifications in managing small business-es and projects, or by providing financing opportuni-ties that can be facilitated through funds that offer cap-ital entrepreneurs need subject to basic rules andregulations. In addition to establishing a fund, financ-ing can be provided through the launch of economicincubators that offer a number of consultative servic-es such as training, financing and promotion all offeredunder one umbrella called the “Bahraini Women Devel-opment Centre”, which is currently in its early stages.Being established by SCW in cooperation with theBahrain Development Bank, the centre is expected tobe fully operational by the end of 2012.

How is the SCW working to increase training forwomen and further develop their skills?PRINCESS SABEEKA: The SCW operates according toa national strategy approved by the King. Such a strat-egy has been translated into a practical workplan thatincludes programmes and projects that accomplish agreat deal for Bahraini women, while at the same timeempowering and developing their skills further so theycan add value to the process of the development ofthe national economy. The council also introduced anumber of initiatives and awards that encourage gov-ernment and public sector organisations to empowerBahraini women in their organisations. These initia-tives have managed to create a substantial impact onthe status of women in the workplace and achieve thedesired balance that ensures equal opportunities andeliminates discrimination against women. The councilhas also signed a number of memorandums of under-standing with local and international organisations that

contribute to the financing of different programmesand projects in efforts of implementing the nationalwork plan of the Council.

Today, the SCW is working on incorporating women’sneeds into the government’s workplans to guaranteethat the programmes set for women are implement-ed; especially those that are concerned with servicesprovided to women and their status in the workplace.

Looking forward, what are the greatest challengesto the advancement of women’s rights in Bahrain?PRINCESS SABEEKA: There are bound to be chal-lenges in every work environment that serve as lessonsto grow from. Furthermore, Bahraini women’s aspira-tions are continuously developing, which adds impe-tus to our goal of providing them with the tools nec-essary to pursue their ambitions.

Perhaps one of the most significant challenges con-fronting women today is the issue of the availability ofopportunities that will allow them to become valuableresources at the national level. It is equally importantto guarantee the enforcement of the constitutionallaws that ensure women, given their social roles asmothers, can balance between their family lives andcontinue working and contributing to the broader soci-ety. This matter requires a significant amount of workand a great deal of follow-up to ensure that womenare given this opportunity in a way that preserves theirrole as an important part of the workforce today whilealso allowing her be a key player in ensuring family sta-bility as a wife and mother.

Further to ensuring equality and the empowermentof women, the Family Law in Bahrain remains a chal-lenge that needs to be actively addressed and lookedafter, specifically because the law sets a standard toprotect women’s rights within the court system. Thefact that it has only been partially passed shows that,despite some very important and crucial progress, thejourney towards the advancement of rights and oppor-tunities for women in Bahrain is far from complete.

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Abdul Latif bin Rashed Al Zayani, GCC Secretary-General,

Bahrain is an integral part of the GCC and experi-ences many benefits of membership. While all GCCmember states have their own foreign policies, theynevertheless communicate closely with each other.It is difficult to find an example where, on importantglobal or regional matters, the members speak withdifferent voices. This is particularly important as weare an intrinsic part of the Arabic and Islamic world,with our home at the epicentre of a turbulent region.

The main challenges we confront are not dissimi-lar to those faced by most nations and internationalgroupings. Regionally, these include the Middle Eastpeace process and other international cooperationinitiatives. Internally, nations face sectarian andemployment challenges, particularly among the youth;potential food and water shortages; and the securi-ty and conservation of oil and gas resources. Thesechallenges are seen as opportunities and call for focusand the strengthening of cooperation between mem-ber states, and between the GCC and other nationsand blocs. In particular, our leaders have the politicalwill to rise above the national level.

Our path to achieving this vision is set out acrossthe GCC’s five strategic goals, all of which are inter-linked and in some way or another impact on globaldynamics. The recognition that security and stabilityare key to long-term success is reflected in our firststrategic goal: to secure the GCC against all threats.This objective addresses threats (intentional mali-cious acts such as external aggression, terrorism andserious organised crime), as opposed to all other risks,which are covered under another goal.

We regard the threat or use of force against anymember state as a threat to all members and webelieve that disputes should be settled in a peacefulmanner, utilising political dialogue. The key to secu-rity is consultation, coordination and cooperationbetween members and fellow Arab states and allies,including on issues of terrorism and crime; rejectionof regional or international control or domination of

the Arabian Gulf; and an assurance of free maritimepassage, particularly for oil and gas.

Regional uncertainties and terrorism in the recentpast have ensured that for military and counter-ter-rorism issues, the GCC has reinforced and tightenedinternal liaisons and cooperation with friends andallies. Advice on regional issues is given freely and attimes member states have acted as useful interme-diaries for discussion between parties. Nor have theyhesitated to assist each other, as in the case of theGCC’s moral and practical support for the Kingdomof Bahrain during internal disturbances in early 2011.

While our security is best protected through inter-national links and agreements and we would like tothink that unilateral action is unlikely, we neverthe-less understand that we must be able to stand on ourown in the event that GCC and external interests arenot fully compatible. Consequently, steps are beingtaken to further strengthen joint capabilities such asenhancing our multi-national military formations andensuring closer coordination over such issues as airspace and CBRN protection. Additional measures arebeing taken to more closely coordinate efforts tocounter organised transnational crime and thoughtis being given to establishing a GCC police force.

Our next strategic goal is to sustain and increaseeconomic growth. There is a huge amount of inter-nal and international cooperation and participationin industry, commerce, finance and many other areas.Fortunately, the GCC has, through joint efforts, demon-strated economic resilience in weathering the glob-al financial crisis and is one of the few economicgroupings to maintain healthy growth. For this to bemaintained and to preserve wealth for future gener-ations, we must place less emphasis on our abundant– but finite – natural resources, and concentrate moreon diversification. We see ourselves moving frombeing resource-fed economies to knowledge-basedeconomies and welcome the attendant businessopportunities for ourselves and our global partners.

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Shared objectivesAbdul Latif bin Rashed Al Zayani, GCC Secretary-General, on regionaldevelopment and security



As a bloc, we have promoted economic innovation.Internal investment has been encouraged and an eas-ier crossflow of labour and a closer customs unionhave been provided for. Since the GCC Customs Unionwas launched in 2003, for example, trade betweenmember states has increased by nearly 200%, or morethan 20% per year, from $30bn in 2002 to over $90bnin 2011. Similarly, with the GCC Common Marketlaunch in 2008, investors have equal access to mar-kets across the GCC and have the right to engage inany economic activity within the council. As a result,intra-GCC investments have jumped by nearly 50%and the movement of people between member stateshas also increased significantly.

Steps have been taken towards creating a tightermarket and fiscal union and further integration is pro-vided for through schemes like a trans-GCC railwaysystem and interlinked power grids. We are movingtoward achieving GCC economic citizenship.

Our third strategic goal, to encourage and maintaina high level of human development, directly affectsevery other goal in a social, political, economic andsecurity sense. It covers all aspects of improving stan-dards of living: eradicating unemployment, creatingopportunities for youth, and providing high-qualityeducation, health care, housing and community serv-ices. Member states aspire to see developmentprocesses and political systems which serve to ele-vate and fulfil the wishes and needs of their people,with citizens from all levels of society feeling thatthey have been provided with unsurpassed advan-tages and benefits and a high quality of life.

At the GCC level, under Common Market rules, socialand welfare development has been expanded acrossborders. GCC citizens now have the right to equaltreatment in all member states when seeking educa-tion and medical care or accessing social services.

It is the human factor, linked to government process-es, which often cause the most misunderstandings andquestions to be raised. Let there be no doubt that good

governance is the top priority of each member stateand each, in its own way, has democratic processeswhich allow the voices of citizens to be heard. Withregard to Bahrain, there is optimism that the Kingdomhas resumed its upward curve following the initia-tives and efforts of King Hamad bin Isa Al Khalifa.These include the establishment of an IndependentCommission of Enquiry, made up of internationalexperts in human rights and criminal law, the recom-mendations of which has the full support of the GCC.

The fourth GCC strategic goal is to improve publicsafety by developing strategies for risk awareness,risk management and crisis management. This goal,through close cooperation with national agencies, isthe foundation for providing the bloc with a degreeof resilience against all risks. It will be driven by anewly established GCC Emergency Management Cen-tre, which, in addition to coordinating all aspects ofrisk management will also be responsible for anenhanced programme of GCC disaster emergencyassistance wherever it may be required worldwide.

Strengthening the international status of the GCC,which is at the heart of regional and international dia-logue and cooperation, is the final key objective. It isthrough this goal that we hope to show the readinessof the GCC to contribute to solving regional and glob-al challenges. Recent work includes donations forhumanitarian and development aid throughout Africaand Asia; relief and reconstruction aid to various coun-tries in the region and elsewhere; and developmentprogrammes in Yemen and the Gaza Strip.

I hope that by learning a little more about the GCC,readers will see the present and future Kingdom ofBahrain within the context of broader horizons as avalued and integral member of the council. Whetherone is doing business in Bahrain or any other of the member states, it is certain that investments aregoing toward a stable and growing region – one thatgains strength from unity, mutual depth, support,resilience, shared forward thinking and a common vision.

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