Economy
From The Report: Bahrain 2019
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Bahrain is among the smaller economies in the GCC, but it is also one of the more diversified, with well-developed financial services and manufacturing sectors. Despite its diversified economy, Bahrain nonetheless faced pressures in recent years as a result of the 2014-15 drop in oil prices. However, an aid package from other Gulf states, announced in late 2018, and an accompanying fiscal-adjustment plan, as well as growth on the back of a partial oil price recovery and a recent major oil and gas discovery, offer hope for a turnaround in 2019. This chapter contains interviews with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board; Mahmood Alkooheji, CEO, Mumtalakat; and Sameer Nass, Chairman, Bahrain Chamber of Commerce and Industry.
Articles from this Chapter
A helping hand: Five-year support package and fiscal balance strategy expected to help bridge the kingdom’s deficit
Encouraging competition: Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board (EDB), on boosting the private sector’s attractiveness for foreign investorsOBGplus
Interview:Khalid Al Rumaihi To what extent can laws be reformed to enable a more attractive destination for foreign investors? KHALID AL RUMAIHI: Over the next few years we have a number of priorities aimed at driving foreign direct investment (FDI). This includes a new bankruptcy law that introduces measures to allow company reorganisation, where the management can remain in place and continue business operations during the administration of a bankruptcy case. This new law is designed to…
Long-term potential: Mahmood Alkooheji, CEO, Mumtalakat, on diversifying portfolios and embracing competitionOBGplus
Interview:Mahmood Alkooheji With the division of Bahrain Telecommunication Company (Batelco) what new business opportunities will become available? MAHMOOD ALKOOHEJI: Batelco is, and will continue to be, an important national company in our portfolio. The division will result in an independent wholesale business entity that will be responsible for deploying a single national broadband network for the kingdom. This new entity will provide services to all licensed operators, including Batelco’s…
Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable futureOBGplus
Decades of growth in trade and foreign investment have made the economies of the world more interdependent than ever before. This trend has been reinforced by the steady liberalisation of international trade and investment at the bilateral, plurilateral and multilateral levels. National economic specialisations, and regional economic and political integration, have broadly proceeded in a single direction since the 1980s. On aggregate, emerging markets have become the main drivers of growth around the world. Limitations Despite the apparent progress of trade and investment liberalisation, multilateral negotiations aiming for further openness…
Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable futureOBGplus
Decades of growth in trade and foreign investment have made the economies of the world more interdependent than ever before. This trend has been reinforced by the steady liberalisation of international trade and investment at the bilateral, plurilateral and multilateral levels. National economic specialisations, and regional economic and political integration, have broadly proceeded in a single direction since the 1980s. On aggregate, emerging markets have become the main drivers of growth around the world. Limitations Despite the apparent progress of trade and investment liberalisation, multilateral negotiations aiming for further openness…
Tax liabilities: Impacts of the trend towards lower corporate tax rates on developed and developing economiesOBGplus
Recent decades have seen a downward convergence in corporate tax regimes as advanced, emerging and developing economies moved to grab a bigger slice of the global investment pie. Headline corporate tax rates have fallen by 20 percentage points since the early 1980s. Alongside lower average rates, special tax incentives aimed at capturing investment have emerged, further reducing the effective rates paid by transnational corporations. In the aftermath of the 2007-08 global financial crisis, many countries were compelled to slash spending and raise revenue in order to rein in precipitous budget deficits. Even as tax revenues as a share…
Tax liabilities: Impacts of the trend towards lower corporate tax rates on developed and developing economiesOBGplus
Recent decades have seen a downward convergence in corporate tax regimes as advanced, emerging and developing economies moved to grab a bigger slice of the global investment pie. Headline corporate tax rates have fallen by 20 percentage points since the early 1980s. Alongside lower average rates, special tax incentives aimed at capturing investment have emerged, further reducing the effective rates paid by transnational corporations. In the aftermath of the 2007-08 global financial crisis, many countries were compelled to slash spending and raise revenue in order to rein in precipitous budget deficits. Even as tax revenues as a share…
Taking the lead: Sameer Nass, Chairman, Bahrain Chamber of Commerce and Industry (BCCI), on the upsides of economic reorganisationOBGplus
Interview:Sameer Nass In what ways has the growth of public-private partnerships (PPPs) restructured Bahrain’s economy? SAMEER NASS: Bahrain has come a long way in the development of the private sector as a key partner to the public sector. When King Hamad bin Isa Al Khalifa started implementing a reform programme, the Bahrain Economic Development Board and Tamkeen, the national labour fund, were established to work hand-in-hand with the BCCI and other partners to build the private sector…
