Oxford Business Group - Bahrain Report 2012

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Country ProfileIndustry, finance, energy, transport & tourism key sectors

Politics dominates international coverage in 2011Land area expanding due to ongoing reclamation efforts

Home to a diverse, multicultural population of 1.23m


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COUNTRY PROFILE

The country has long pursued a policy of economic diversification

As the Arabic word for two seas, Bahrains name refers

to the sweet-water springs that fill the Kingdoms

aquifers and the salty seas that surround the island.

HISTORY: The Kingdom of Bahrain is home to one of

the regions oldest civilisations, the Dilmun civilisation,

which dates back nearly 6000 years. Throughout his-

tory, Bahrain attracted the attention of empires and

nations 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 was

important to ancient Mesopotamia because it con-

nected the lands of the present day Middle East and

established sea lanes. Thus, the country thrived as a

commercial centre where merchants founded settle-

ments that formed the backbone of the economy.

GOVERNMENT:Bahrain declared independence from

the British in 1971. Between 1961 and 1999, Bahrain

was ruled as an emirate by the late Sheikh Isa bin Hamad

Al Khalifa. On his death in 1999, Sheikh Hamad bin Isa

Al Khalifa, his son, became the islands ruler and set in

motion 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 for

men 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 constitutional

monarchy, thereby establishing the current Kingdom

of Bahrain ruled by King Hamad bin Isa Al Khalifa.

The executive government is headed by the prime

minister, Prince Khalifa bin Salman Al Khalifa, who has

been in place since 1971, making him the worlds

longest-serving prime minister. Executive authority is

vested with the King and the Council of Ministers (thecabinet), which is appointed by the King. Crown Prince

Salman bin Hamad Al Khalifa is the deputy supreme com-

mander of the Bahrain Defence Force as well as the

chairman of the Bahrain Economic Development Board

(EDB), a state body tasked with formulating the coun-

trys long-term development strategy.

The National Action Charter modernised the legisla-

tive side of government, and the parliament that was

suspended in 1975 was reconstituted. The Bahraini

parliament, known as the National Assembly, is made

up of a lower house, the Council of Representatives,

which is elected by universal suffrage, and an upper

house, the Shura (consultative) Council, which is appoint-

ed by the King. The National Assembly consists of 80

seats; 40 elected members sit on the Council of Rep-

resentatives and 40 appointed members sit on the

Shura Council. The upper parliament has the power to

block legislation from the lower parliament. Elected

members of the lower parliament serve four-year terms.

The most recent elections were held in October 2010.

Special elections were held in September and October

2011 to fill the 18 seats vacated by members of the Al

Wefaq party, resulting in the largest number of women

ever to be elected to the Council of Representatives,

with four women now part of the 40 members. Al Wefaq

did not participate in the elections. The Kingdom also

announced in May 2012 it would join Saudi Arabia in

a closer political union, with the two states collaborat-ing on foreign, security and economic policy.

POLITICS:Protests flared up throughout the Kingdom

in February and March of 2011, and demonstrations

continued for the remainder of the year and into 2012.

In response to the earlier political unrest, a National

Dialogue 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 recommendations

for restructuring, including recognising the importance

of further diversification; encouraging the role of the

private sector; evaluating options for redirecting sub-sidies; placing new levies for indirect and corporate

taxes; resolving the issue of the high increase of guest

workers; and supporting innovation programmes. One

outcome 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


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COUNTRY PROFILE

amendments that make it easier to question and remove

ministers and withdraw confidence in the Council of

Ministers. According to a televised speech by the King,

the purpose of the these amendments, ratified in May

2012, is to increase dialogue on reform.

Following the conclusion of the dialogue, the King

launched the Bahrain Independent Commission of

Inquiry (BICI) on June 29, 2011 to investigate the polit-ical unrest of earlier that year. The commissions aim

was to determine if the events that began in February

2011 had involved violations of international human

rights law and to provide recommendations for politi-

cal stability. The commission was directed to issue a com-

prehensive account of the events and describe any

acts of violence that occurred by highlighting all the

parties involved and investigating allegations of police

brutality and violence by demonstrators. The official BICI

Report was released on November 23, 2011 with numer-

ous recommendations, and the National Commission

that was tasked to follow up on the suggestions releasedits final report on March 20, 2012. Nevertheless, the

opposition has claimed that the governments reform

measures are taking too long to implement.

ECONOMIC OVERVIEW: Bahrain has set many region-

al precedents; among others, it was the first country

in the Middle East to discover oil in 1932. This sparked

a major economic overhaul as the petroleum industry

developed, catalysing a process of modernisation that

diverted the Kingdoms economy away from tradition-

al mainstays such as pearl diving and fishing. Mindful

of its finite hydrocarbons reserves, Bahrain pursued an

early policy of economic diversification. This policy

formed the basis for the Economic Vision 2030, a devel-

opment plan to improve Bahraini living standards. The

campaigns framework, the National Economic Strate-

gy, highlights the path to a stronger economy through

growth in the private sector as the government con-

tinues to invest in infrastructure and human resources.

Bahrain has successfully developed its industrial and

downstream sectors, and is home to one of the largest

aluminium smelters in the world, Aluminium Bahrain

(Alba). In 2011, overall GDP at constant prices had an

annual 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 Banks 2012Doing Business report, and for the third time ranked

37th in the World Economic Forums Global Compet-

itiveness Report in 2011. Bahrain was also notably

ranked the 12th freest economy in the world and first

in the Middle East and North Africa (MENA) region,

according to the 2012 Index of Economic Freedom.

ENERGY: Bahrains energy sector is a major source of

government revenue. In 2011 oil accounted for approx-

imately 13% of GDP and 75% of government revenues.

Onshore reserves discovered in the Awali Bahrain Field

yielded some 75,000 barrels per day (bpd) at its peak

in 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 regional

oil 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 has

been a great beneficiary of the economic diversifica-

tion programme. Sector assets amounted to $195.5bn

as of January 2012, contributing 25% of GDP. There

were 415 registered financial institutions operating in

the Kingdom as of February 2012, up from 409 in 2011,

demonstrating that the regulatory system in place

helped to sustain the industry in 2011. As of 2009, the

sector employed roughly 15,000 people, 34% of whom

were foreign nationals. Bahrain is also a major centre

for offshore banking and funds in the region, with 2789

authorised funds registered as of February 2012.

ISLAMIC FINANCE:Bahrain is a major centre for Islam-

ic finance, and the sectors assets totalled $24.4bn as

of January 2012. The Kingdom is home to a number of

regulatory agencies and institutions that help to devel-

op standards and guidelines for the Islamic finance

industry, including the Accounting & Auditing Organi-

sation for Islamic Financial Institutions (AAOIFI), the

International Islamic Financial Market (IIFM), the Islam-

ic International Rating Agency (IIRA), and the General

Council for Islamic Banks and Financial Institutions

(CIBAFI). As of January 2012, the country was home to

26 Islamic banks as well as 18 takafulfirms, which pro-vide sharia-compliant insurance.

TRANSPORT: Given its strategic maritime location and

proximity to Saudi Arabia the largest market in the

Middle East Bahrain has successfully established itself

as a transportation hub for the northern Gulf region.

The countrys new Khalifa Bin Salman Port, the Bahrain

International Airport and the overland route to Saudi

Arabia via the King Fahd Causeway helped establish

the nation as a focal point for transport and logistics.

Expansion of the international airport, ongoing infra-

structure improvements and the planned Qatar-Bahrain

Causeway will serve to further boost the Kingdomscompetitiveness as a transportation hub.

TOURISM: Bahrain has a thriving tourism industry that

attracts visitors from both the region as well as further

abroad. Tourists are drawn to Bahrains 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


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COUNTRY PROFILE

eral atmosphere, rich history and culture. The Kingdom

offers a wide range of attractions, including historic mon-

uments like the Al Khamis Mosque, which dates back

to 692 CE, and the modern Bahrain International Cir-

cuit, host of a 2012 Formula 1 race.

The tourism sector was adversely affected by the

political environment in 2011 with a major decline in

visitors and the cancellation of that years Bahrain For-mula 1 Grand Prix. However, tourism numbers improved

in 2012, and the meetings, incentives, conventions and

exhibitions segment is back on track. Bahrain was des-

ignated Capital of Arab Culture in 2012 and Capital of

Arab Tourism in 2013. Both should give the sector a

boost 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 sq

km in 2010. The national archipelago consists of 33

islands, and the four main islands are Bahrain Island, Al

Muharraq 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 Bahrains closest neighbour to the

north-west and across the Gulf of Bahrain, and they

are linked by the 25-km King Fahd Causeway. Qatar lies

28 km off the south-eastern coast. The two countries

will eventually be linked by a causeway, which will be

the worlds 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 the

second-largest island and is home to the countrys sec-

ond-largest city, which bears the same name. Other

significant cities include Riffa, Sitra and Isa Town.

At 122 metres, Jebel Al Dukhan is the Kingdoms

highest 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 humid

summer and a mild winter. Summer begins around April

and continues through October. The average temper-

ature in the summer is 36C, with highs reaching 48C.

Sandstorms are not uncommon during the mid-sum-

mer months. Winter is from November to April with tem-

peratures ranging from 15C to 24C, and coolest

between December and March when the northerly

winds prevail. Average annual rainfall is 77 mm.

NATURAL RESOURCES: Oil, gas, fish and pearls are

Bahrains most abundant natural resources. Due to thedesert climate, agricultural production is limited. Since

the discovery of oil in the 1930s, traditional industries

such as fishing and pearling have contributed signifi-

cantly less to overall output but remain important areas

for employment and due to their traditional cultural sig-

nificance. Although the Kingdom was the first of the

GCC states to discover hydrocarbons, it has smaller

quantities 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 the

first time in 30 years thanks to enhanced oil recovery

techniques. The Kingdom recently awarded a tender

for 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 offshore

Abu Safa field with the Kingdom of Saudi Arabia.Water is a limited and dwindling resource in Bahrain.

The main aquifer, Dammam, is becoming saline from

overuse. As a result, Bahrain relies on desalination

plants to provide most of its potable water.

POPULATION: The countrys population is diverse and

multicultural and home to a variety of different ethnic-

ities. The 2010 census puts the total population of the

Kingdom at 1.23m, with 568,400 nationals and 666,200

non-Bahrainis, who make up 54% of the total populace.

Approximately 51.1% of the population are Bahraini

citizens, 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, which

can be attributed to the sizable expatriate workforce.

An estimated 88.7% of the population live in urbanised

areas, with 329,510 individuals residing in the Capital

Governorate, home to the capital, Manama.

LANGUAGE: Arabic is the official language of Bahrain,

and Bahraini Arabic, similar to Khaleeji(Gulf) Arabic, is

the most common spoken form. English is widely used

and is often the de facto language of business given

the ethnic and linguistic diversity of the countrys 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 Urdu

are also well represented in society.

RELIGION: Islam is the official religion of Bahrain. Some

98% of Bahraini nationals are Muslim of either Shia or

Sunni 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 most

religiously tolerant states in the Gulf region and allows

for religious freedom, evidenced by the presence of

mosques, 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 play

in society. Women have actively contributed to the

countrys development since the late 1920s when they

were allowed to attend schools, receive formal educa-

tion and vote in municipal elections. Womens rights

were further supported with the establishment of the

National Action Charter and the Supreme Council forWomen (SCW) in 2001. The SCW promotes the status

of women, awareness of their capabilities, ensures their

rights are protected and helps tackle various problems

in society. Bahrain was the first GCC state to allow

women to participate in national elections, both as

voters and candidates. It was also the first state in the

Gulf to elect a female member of parliament, and there

are currently four elected female members serving in

the 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 provide

schooling for females in 1928. Compulsory elementary

education for children was introduced in 2001. The

World Economic Forums Global Competitiveness

Report 2011-12, issued in October 2011, highlighted

Bahrains high rates of both primary and secondary

enrolment (97.3% and 96.4%, respectively) as well as

the quality of education and availability of research

and training services. Tertiary enrolment has increased

threefold over the course of the last decade, and women

account for 70% of total students. The government

pays all educational costs for Bahraini citizens, and

11% of total government expenditure is earmarked for

education. Bahrains literacy rate, which is approximate-

ly 91.4%, is one of the highest in the region.

Recent government programmes meant to further

improve 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 regions health care. The Kingdom is home

to the regions oldest hospital, the American Mission

Hospital (AMH), established in 1902. Until the late

1940s, AMH provided health care for both Bahrainis

as well as neighbouring populations, including Saudis,

who would travel to the island nation by boat for care.

Health care is completely subsidised for Bahraini

nationals. There are 13 private hospitals and 11 gov-ernment hospitals, including the recently opened King

Hamad University Hospital in 2012. Health care con-

tinues to be a central focus as the government strives

to keep up with the significant growth in population.

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Infrastructure upgrades should cement the countrys status as a transport hub for the northern Gulf


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COUNTRY PROFILE VIEWPOINT

King Hamad bin Isa Al Khalifa

The BICI Report deals with controversial matters of

importance. The commission has sought to establish

the true facts of a period of painful unrest, which has

affected all of Bahrain. The commission understood

the 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 violence

and intimidation against ordinary people as well as

against the nations essential institutions. At the same

time, they have also identified serious shortcomings on

the part of some organs of our government, particu-

larly in failing to prevent instances of excessive force

and of the mistreatment of persons placed under arrest.

Some may wonder why we asked a commission of

foreign experts to examine the events of February and

March 2011 and their subsequent ramifications. The

answer is that any government which has a sincere

desire 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 national

governments 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 protest

or 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 in

harmony with international law and morality. Nor does

the international community conclude that these are

oppressive governments. They are seen to follow a path

of wisdom, acknowledging they benefit from neutral

investigations and from trusting their own capacity to

use criticism constructively in their peoples interest.

We are determined to ensure that the painful events

our beloved nation has experienced are not repeated,but that we learn from them, and use our new insights

as 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 to

expand the definition of torture to ensure that all forms

of ill treatment are covered by our criminal laws. Both

of these proposals would place our laws in full conform-

ity with international human rights standards. We have

addressed 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 job

dismissals and expulsions from educational institu-

tions. In addition to retrials and reinstatement, affect-

ed persons have access to many remedies, including

the newly established Victims Compensation Fund.

The BICI Report is lengthy and detailed. We must

study it with the care it deserves. As the first step, a

working group of government members conducted an

in-depth reflection on the findings and recommenda-

tions. This working group will then urgently propose con-

crete responses to the recommendations. We intend

to waste no time in benefitting from this report. It pro-

vides an historic opportunity for Bahrain to deal with

matters that are both serious and urgent. Officials who

have not been up to their task must be held account-

able, and will be replaced. Above all, we must conceive

and 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 to

ensure there is no return to unacceptable practices once

the commission has left Bahrain, we have decided to

engage with international organisations and eminent

individuals to assist and advise our law enforcement

agencies, and to improve their procedures.

We believe that the release of this report has opened

a new page in history, which has been made possible

by 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. That

court, through its judgements, has set the standard for

modern international human rights. The same is true

of 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 Independent

Commission of Inquiry (BICI)



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Rica. The whole world benefits from the jurisprudence

of 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 officials

are subject to a higher law, and that we can be proud

of our traditions of respect for human rights.

Bahrain was an immediate supporter of the Arab

Charter of Human Rights 15 years ago, but in truth this

text has not created a system like those of Europe and

the Americas. I will propose to our fellow Arab states

that we now move concretely toward the creation of

an Arab Court of Human Rights to take its proper place

on the international stage.

Bahrain assumes its international responsibilities

seriously. Indeed, it has taken the initiative to contribute

to collective international action by providing facilities

for 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 houses

a regional office of the UN Development Programme.

We would welcome other UN agencies, perhaps, for

example, by the establishment of a regional office ofthe UN Office on Drugs and Crime.

Such international cooperation will of course not

replace national initiatives. We previously announced

the establishment of the National Institution for Human

Rights as an independent body possessing its own

organic 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 reports find-

ings and recommendations, I say again that they involve

fundamental issues, and must be dealt with urgently.

All of this being said, we cannot fail to extend ourgratitude to our armed forces and law enforcement

agencies 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 with

civilians; and to the multitude of ordinary Bahrainis

who took a stand against the forces of violence and

sectarian division in our kingdom.

We have every sympathy for those who sincerely and

peacefully seek reforms within a pluralistic society

where the rights of all are respected, but not for those

who 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 hand

of friendship, towards the Islamic Republic of Iran, which

with the around-the-clock broadcasts in Arabic given

by Iranian state-controlled radio and television sta-

tions, incited our population to engage in acts of vio-

lence, sabotage and insurrection. Irans propaganda

fuelled the flames of sectarian strife an intolerable

interference in our internal affairs from which Bahrain

has suffered greatly. As the chair of the commission

correctly said, the government of Bahrain is not in a

position currently to provide evidence of links between

Iran and specific events in our country. But this prop-

aganda, an objective fact to be observed by all who have

eyes and ears and comprehend Arabic, not only direct-

ly challenges our countrys stability and sovereignty, butalso poses a threat to the security and stability of the

GCC countries. We hope that the Iranian leadership will

reflect and abandon this policy of enmity and discord.

We affirm our commitment to ensuring the safety

and security of our nation and its people, and our com-

mitment to reform and to the rectification of errors in

all transparency. We urge all our people to reflect upon

their 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 highest

objective, after pleasing God, is to promote brother-

hood, harmony and tolerance amongst our people,within the environment of a pluralistic, cohesive and

prosperous society; a society guaranteeing the rule of

law and human rights; a society ensuring the tranquil

pursuit 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 womens progress in

political life started in 2001, after King Hamad bin Isa

Al Khalifa announced reforms and a political moderni-

sation process. Support for women from the leader-

ship and the people is evident in the overwhelming

98.4% vote in favour of the National Action Charter,

which ultimately led to an increase in the representa-

tion of Bahraini women internationally and locally in

ministerial and decision-making posts. The charter was

reflected in the constitutional articles that guaranteed

the participation of women in political life and public

service while preserving a balance between their famil-

ial roles and their work in society. It also emphasised

the importance of ensuring the principles of equality

and justice. The SCW was very aware from the outset

of the need to launch special programmes to political-

ly empower women, encourage them to exercise their

rights and present them as a valuable and influential

force in the decision-making process.

The recent increase in the number of women in the

legislative assembly (four women were newly elected

to the Council of Representatives, and 11 women wereappointed to the Shura Council) is considered a signif-

icant boost to womens contribution to political life in

the Kingdom of Bahrain. This rise further proves the

amount of support that Bahraini women receive today

and 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 for

women 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 rate

of unemployment amongst women and men. The SCW

is very keen to contribute to this effort by offering

comprehensive programmes aimed at the economic

empowerment of women to create new opportunities

for 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 their

own businesses, taking into consideration the need to

make new business choices that are compatible with

market demand. Since then, we have succeeded in

attracting 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 towards

economic empowerment; however, there are many

other opportunities available to Bahraini women that

can contribute to both personal gain and the econom-

ic development of the country. Opportunities in the field

of medicine, law, architecture and consultancy are

always 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 skills

to Bahraini women, in accordance with the countrys

economic 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-sized

enterprises (SMEs) important for creating oppor-

tunities for women?

PRINCESS SABEEKA: SMEs offer a certain type of

economic independence for Bahraini women that allow

them 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 organisations

such as Tamkeen, Bahrain Development Bank, UNIDOand Ebdaa Bank are strategic partners in implement-

ing economic empowerment programmes for women

with the council. There are also a number of examples

and 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)



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COUNTRY PROFILE INTERVIEW

businesses and, today, are regional businesswomen.

Such projects, if sustained, should allow women to par-

ticipate in developing the economy while controlling

capital and managing their lives.

The SCW is currently working on an economic empow-

erment programme using a comprehensive economic

system, either by administering training programmes

and 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 and

regulations. In addition to establishing a fund, financ-

ing can be provided through the launch of economic

incubators that offer a number of consultative servic-

es such as training, financing and promotion all offered

under one umbrella called the Bahraini Women Devel-

opment Centre, which is currently in its early stages.

Being established by SCW in cooperation with the

Bahrain Development Bank, the centre is expected to

be fully operational by the end of 2012.

How is the SCW working to increase training for

women 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 that

includes programmes and projects that accomplish a

great deal for Bahraini women, while at the same time

empowering and developing their skills further so they

can add value to the process of the development of

the national economy. The council also introduced a

number of initiatives and awards that encourage gov-

ernment and public sector organisations to empower

Bahraini women in their organisations. These initia-

tives have managed to create a substantial impact on

the status of women in the workplace and achieve thedesired balance that ensures equal opportunities and

eliminates discrimination against women. The council

has also signed a number of memorandums of under-

standing with local and international organisations that

contribute to the financing of different programmes

and projects in efforts of implementing the national

work plan of the Council.

Today, the SCW is working on incorporating womens

needs into the governments workplans to guarantee

that the programmes set for women are implement-

ed; especially those that are concerned with services

provided to women and their status in the workplace.

Looking forward, what are the greatest challenges

to the advancement of womens rights in Bahrain?

PRINCESS SABEEKA: There are bound to be chal-

lenges in every work environment that serve as lessons

to grow from. Furthermore, Bahraini womens 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 of

opportunities that will allow them to become valuable

resources at the national level. It is equally important

to guarantee the enforcement of the constitutional

laws that ensure women, given their social roles as

mothers, can balance between their family lives andcontinue working and contributing to the broader soci-

ety. This matter requires a significant amount of work

and a great deal of follow-up to ensure that women

are given this opportunity in a way that preserves their

role as an important part of the workforce today while

also allowing her be a key player in ensuring family sta-

bility as a wife and mother.

Further to ensuring equality and the empowerment

of women, the Family Law in Bahrain remains a chal-

lenge that needs to be actively addressed and looked

after, specifically because the law sets a standard to

protect womens rights within the court system. Thefact that it has only been partially passed shows that,

despite some very important and crucial progress, the

journey towards the advancement of rights and oppor-

tunities for women in Bahrain is far from complete.

17



11/12


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 GCC

member states have their own foreign policies, they

nevertheless communicate closely with each other.

It is difficult to find an example where, on important

global or regional matters, the members speak with

different voices. This is particularly important as we

are 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 international

groupings. Regionally, these include the Middle East

peace process and other international cooperation

initiatives. Internally, nations face sectarian and

employment challenges, particularly among the youth;

potential food and water shortages; and the securi-

ty and conservation of oil and gas resources. These

challenges are seen as opportunities and call for focus

and the strengthening of cooperation between mem-

ber states, and between the GCC and other nations

and blocs. In particular, our leaders have the political

will to rise above the national level.

Our path to achieving this vision is set out across

the GCCs five strategic goals, all of which are inter-linked and in some way or another impact on global

dynamics. The recognition that security and stability

are key to long-term success is reflected in our first

strategic goal: to secure the GCC against all threats.

This objective addresses threats (intentional mali-

cious acts such as external aggression, terrorism and

serious organised crime), as opposed to all other risks,

which are covered under another goal.

We regard the threat or use of force against any

member state as a threat to all members and we

believe that disputes should be settled in a peaceful

manner, utilising political dialogue. The key to secu-rity is consultation, coordination and cooperation

between members and fellow Arab states and allies,

including on issues of terrorism and crime; rejection

of regional or international control or domination of

the Arabian Gulf; and an assurance of free maritime

passage, particularly for oil and gas.

Regional uncertainties and terrorism in the recent

past have ensured that for military and counter-ter-

rorism issues, the GCC has reinforced and tightened

internal liaisons and cooperation with friends and

allies. Advice on regional issues is given freely and at

times member states have acted as useful interme-

diaries for discussion between parties. Nor have they

hesitated to assist each other, as in the case of the

GCCs moral and practical support for the Kingdom

of Bahrain during internal disturbances in early 2011.

While our security is best protected through inter-

national links and agreements and we would like to

think that unilateral action is unlikely, we neverthe-

less understand that we must be able to stand on our

own in the event that GCC and external interests are

not fully compatible. Consequently, steps are being

taken to further strengthen joint capabilities such as

enhancing our multi-national military formations and

ensuring closer coordination over such issues as air

space and CBRN protection. Additional measures are

being taken to more closely coordinate efforts to

counter organised transnational crime and thoughtis being given to establishing a GCC police force.

Our next strategic goal is to sustain and increase

economic growth. There is a huge amount of inter-

nal and international cooperation and participation

in 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 economic

groupings to maintain healthy growth. For this to be

maintained 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 from

being resource-fed economies to knowledge-based

economies and welcome the attendant business

opportunities for ourselves and our global partners.

18

Shared objectivesAbdul Latif bin Rashed Al Zayani, GCC Secretary-General, on regional

development and security



12/12


As a bloc, we have promoted economic innovation.

Internal investment has been encouraged and an eas-

ier crossflow of labour and a closer customs union

have been provided for. Since the GCC Customs Union

was launched in 2003, for example, trade between

member states has increased by nearly 200%, or more

than 20% per year, from $30bn in 2002 to over $90bn

in 2011. Similarly, with the GCC Common Market

launch in 2008, investors have equal access to mar-

kets across the GCC and have the right to engage in

any economic activity within the council. As a result,

intra-GCC investments have jumped by nearly 50%

and the movement of people between member states

has also increased significantly.

Steps have been taken towards creating a tighter

market and fiscal union and further integration is pro-

vided for through schemes like a trans-GCC railway

system and interlinked power grids. We are moving

toward achieving GCC economic citizenship.

Our third strategic goal, to encourage and maintain

a high level of human development, directly affects

every other goal in a social, political, economic and

security sense. It covers all aspects of improving stan-

dards of living: eradicating unemployment, creatingopportunities for youth, and providing high-quality

education, health care, housing and community serv-

ices. Member states aspire to see development

processes 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 that

they have been provided with unsurpassed advan-

tages and benefits and a high quality of life.

At the GCC level, under Common Market rules, social

and welfare development has been expanded across

borders. GCC citizens now have the right to equal

treatment 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 and

questions to be raised. Let there be no doubt that good

governance is the top priority of each member state

and each, in its own way, has democratic processes

which allow the voices of citizens to be heard. With

regard to Bahrain, there is optimism that the Kingdom

has resumed its upward curve following the initia-

tives and efforts of King Hamad bin Isa Al Khalifa.

These include the establishment of an Independent

Commission of Enquiry, made up of international

experts 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 public

safety by developing strategies for risk awareness,

risk management and crisis management. This goal,

through close cooperation with national agencies, is

the foundation for providing the bloc with a degree

of resilience against all risks. It will be driven by a

newly established GCC Emergency Management Cen-

tre, which, in addition to coordinating all aspects of

risk management will also be responsible for an

enhanced programme of GCC disaster emergency

assistance 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 readiness

of the GCC to contribute to solving regional and glob-

al challenges. Recent work includes donations for

humanitarian and development aid throughout Africa

and Asia; relief and reconstruction aid to various coun-

tries in the region and elsewhere; and development

programmes 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 of

Bahrain within the context of broader horizons as a

valued and integral member of the council. Whether

one is doing business in Bahrain or any other ofthe member states, it is certain that investments are

going toward a stable and growing region one that

gains strength from unity, mutual depth, support,

resilience, shared forward thinking and a common vision.

19

Documents

Oxford Business Group - Bahrain Report 2012