Category: News

Bahrain Economic Development Board (Bahrain EDB) and Georgetown Law School co-hosted the seminar “Innovating Trade: The Impact of Digital Laws and Emerging Technologies” at the Ritz-Carlton Bahrain.

Through a series of case studies presented and roundtable discussions, the seminar examined the profound effects of digital legislation and technological innovations on international trade. Discussions focused on how these factors influence trade flows and enable businesses to increase trade volumes both domestically and across borders.

The seminar hosted international experts from the U.S. and beyond, as well as high-profile attendees, including H.H. Shaikha Nayla bint Hamad bin Ebrahim Al-Khalifa, Chairperson and Founder of Royal Life Saving Bahrain, H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, H.E. Dr. Ramzan bin Abdulla Al Nuaimi, Minister of Information, H.E. Steven Bondy, U.S. Ambassador to the Kingdom of Bahrain, Georgetown Law Alumni, and senior representatives from leading law firms and government entities of Bahrain.

The welcome address was delivered by H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, and by Dean William M. Treanor, Executive Vice President of Georgetown University and Dean of the Law Center.

Key topics discussed at the seminar included the implications of digital laws and regulations, the cross-border transfer of data, the role of emerging technologies such as artificial intelligence, internet of things and cloud computing in shaping international trade, discussing recent developments in global practices, and the necessity to adapt digital legislative frameworks to accommodate these technological changes.

Notable participants included Dr. Jameel Alalawi – a legal advisor, Abdallah Maher – a Partner at a US Law Firm, Zain Satardien – Advisor at Hourani & Partners, Firas Gadamsi – Partner at GLA&CO in Dubai, Catherine Kuhlmann – Visiting Professor of Law at Georgetown University, Mihaela Lodlova – Senior Regulatory and Competition Lawyer, Mohammed Owais Taha – Co-founder of 10 BE5 Ltd, Nada Al Saeed – Chief of Strategy at Bahrain EDB, and Zeina Albuainain- Associate at Al Tamimi & Company.

Bahrain has demonstrated a commitment to bolstering its ICT sector through the recent enactment of four pivotal laws aimed at enhancing the Kingdom’s value proposition for international investors. These include the Personal Data Protection Law, which governs the commercial use of personal data, and the Electronic Communications and Transactions Law, which regulates electronic communications, records and contracts. The Data Jurisdiction Law is designed to encourage international entities to use Bahrain-based cloud data centres. Lastly, Bahrain stands as the first nation to implement the Model Law on Transferable Electronic Records as developed by the United Nations Commission on International Trade Law (UNCITRAL), which includes the recognition and regulation of electronic forms of checks, bills of exchange, promissory notes, bills of lading, letters of credit, and warehouse receipts.

Source:https://www.bahrainedb.com/latest-news/bahrain-edb-and-georgetown-university-discuss-impact-of-digital-laws-and-emerging-technologies-on-trade

The island nation of Bahrain reported a total of USD 2.4 billion in investment stemming from 9 major projects, which are set to generate 3,000 employment opportunities following the introduction of its Golden License in April 2023. The initiative, which delivers white-glove treatment and first-priority allocation on key project milestones such as land allocation, aims to maintain Bahrain’s demonstrated ability to attract impactful businesses across industries to contribute to its positive trajectory of sustained economic growth.

Bahrain has continued to prioritise digital transformation, the development of its economic sectors, and has secured influential success stories owing to a highly-skilled, bi-lingual, future-ready workforce that is consistently supported with government-backed training. Bahrain’s FDI stock relative to GDP is well above the global average rate at just above 81%, which stands as a testament to the robust trust international investors place in Bahrain’s competitive value proposition, reinforcing its strategic economic significance within the region.

The newly awarded large-scale projects span across diverse sectors, including Bahrain Titanium, the first facility of its kind in the region set to be established by Switzerland-based Interlink Metals & Chemicals, the construction of the first greenfield head office of National Bank of Kuwait (NBK) outside of Kuwait, the installation of a data centre facility and regional submarine cable by Bahrain-born technology company Beyon, and finally, the vibrant urban waterfront development Bahrain Marina.

H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board (Bahrain EDB), said, “Bahrain has proven itself as a trusted destination for local and global companies to set up or expand their operations owing to its unique value proposition. The Golden License is the latest of several initiatives introduced that reflect a vested commitment to living up to our pledge of being business-friendly, ensuring a seamless journey across every stage of progress, and ultimately acting as partners in building a solid foundation for long-term success.”

“In alignment with Bahrain’s national vision, the licenses awarded span across priority sectors, ushering into each industry a new wave of employment opportunities, innovation, and niche expertise. We are excited to witness the impact of these collective investments in contributing towards Bahrain’s ongoing journey to economic diversification and prosperity,” H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain EDB, added.

H.E. Abdulla bin Adel Fakhro, Minister of Industry and Commerce, said, “Ultimately, Bahrain has always been known for its ease of doing business, progressive legislation, and the agility of Team Bahrain. The Golden Licenses awarded across 2023 and 2024 are a healthy mix of home-grown and international projects, creating new prospects for other companies from around the world to set up in Bahrain, thereby further solidifying trade ties with key markets around the world.”

From 2002 to 2022, Bahrain’s nominal GDP grew from USD 9.6 billion to USD 44.4 billion, the equivalent of an average annual rate of 8%, surpassing the global rate of 5.5% (2002). Bahrain also diversified its economic sectors, the non-oil sector accounted for 83.6% of real GDP in Q3 of 2023, where the financial services sector overtook oil as the largest contributor to real GDP, standing at 18.1% in Q3 of 2023.

Source:https://www.bahrainedb.com/latest-news/bahrains-golden-license-attracts-usd-2-4-billion-in-investment-contributing-to-economic-diversification-growth

Edamah, the real estate arm of the Kingdom’s sovereign wealth fund, Bahrain Mumtalakat Holding Company “Mumtalakat”, has recently signed a 25-year lease agreement with Bahrain Titanium, a subsidiary of Interlink Metals & Chemicals AG (Interlink), for a 50,000 sqm industrial plot at Askar, for a Titanium multiphase facility valued at upwards of USD 200 million. Securing the establishment of this landmark first-of-its-kind project and milestone agreement was supported by Bahrain Economic Development Board. On the heels of being awarded a Golden License, which fast-tracked the lease signing and land allocation, the establishment of the Bahrain Titanium facility cements the island nation’s position as an established exporting hub for the world, contributing to its economic diversification and enhancing its global competitiveness.

Interlink chose Bahrain as the destination for its groundbreaking project due to Bahrain’s strategic location, along with its well-established exporting capabilities. During the first phase of the project, Bahrain Titanium will operate an electron-beam furnace (EB), for the production of commercially pure titanium slabs and ingots, as well as a vacuum-arc (VAR) furnace, for the production of titanium alloys. The first phase of the project will have a 4,000 tonnes capacity per annum with further projected increases in capacity in the future. The first stage will be followed by a comprehensive downstream expansion into forged bars and round and tubed titanium products.

H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board (Bahrain EDB) said, “The agility of Team Bahrain ensured this strategic project hit the ground running. Benefiting from facilitated duty-free access to 24 markets globally, the Switzerland-based manufacturer is a welcome addition to Bahrain’s well-diversified economy, adding value with their niche experience and expertise. As an export-oriented project, this deepens Bahrain’s ties with key markets, serving as a gateway for leading players in the logistics and manufacturing industry to tap into the Middle East and North Africa market and beyond.”

The facility will be purpose-built to serve fast-growing industries such as medical, aerospace, automotive, and energy, meeting the increasing global demand for titanium products, a niche commodity gaining traction worldwide surging Bahrain’s exports to international markets.

H.E. Abdulla bin Adel Fakhro, Minister of Industry and Commerce, said, “Marking the first specialised Titanium facility to be established in the region, Interlink has earned a solid reputation as one of the largest traders and suppliers of titanium in the world. Bringing these international institutions to Bahrain plays a pivotal role in enhancing the diversity, quality, and overall investment value of the national industrial sector, which contributes to increasing Bahrain’s economic competitiveness and elevating its standing as a leading export hub on the global map.”

H.E. Shaikh Abdulla bin Khalifa Al Khalifa, CEO of Mumtalakat and Chairman of Bahrain Real Estate Investment Company (Edamah), added, “We are pleased to sign this agreement with Bahrain Titanium, which marks a crucial step in facilitating their local operations enabling them to take advantage of Bahrain’s strategic location and world-class logistics infrastructure. As the first facility of its kind, this landmark signing underscores our commitment to expanding and diversifying Bahrain’s robust property portfolio with premium projects that foster innovation across priority sectors of the economy, in line with the national vision.” Igor Raykhelson, Chairman of Interlink Metals & Chemicals, said, “As part of Interlink’s roadmap for global expansion, Bahrain was a clear destination of choice given its Free Trade Agreement ratified with the US, strategic location, competitive operating costs, and availability of experienced and highly skilled local talent. The blueprint for the new Bahrain-based plant outlines the use of state-of-the-art technology and advanced manufacturing processes to meet the highest industry standards in energy efficiency and waste management, with a minimal carbon footprint.”
Source:https://www.bahrainedb.com/latest-news/edamah-signs-lease-agreement-with-interlink-for-over-usd-200-million-facility-in-bahrain

Edamah, the real estate arm of the Kingdom’s sovereign wealth fund, Bahrain Mumtalakat Holding Company “Mumtalakat”, has recently signed a 25-year lease agreement with Bahrain Titanium, a subsidiary of Interlink Metals & Chemicals AG (Interlink), for a 50,000 sqm industrial plot at Askar, for a Titanium multiphase facility valued at upwards of USD 200 million. Securing the establishment of this landmark first-of-its-kind project and milestone agreement was supported by Bahrain Economic Development Board. On the heels of being awarded a Golden License, which fast-tracked the lease signing and land allocation, the establishment of the Bahrain Titanium facility cements the island nation’s position as an established exporting hub for the world, contributing to its economic diversification and enhancing its global competitiveness.

Interlink chose Bahrain as the destination for its groundbreaking project due to Bahrain’s strategic location, along with its well-established exporting capabilities. During the first phase of the project, Bahrain Titanium will operate an electron-beam furnace (EB), for the production of commercially pure titanium slabs and ingots, as well as a vacuum-arc (VAR) furnace, for the production of titanium alloys. The first phase of the project will have a 4,000 tonnes capacity per annum with further projected increases in capacity in the future. The first stage will be followed by a comprehensive downstream expansion into forged bars and round and tubed titanium products.

H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board (Bahrain EDB) said, “The agility of Team Bahrain ensured this strategic project hit the ground running. Benefiting from facilitated duty-free access to 24 markets globally, the Switzerland-based manufacturer is a welcome addition to Bahrain’s well-diversified economy, adding value with their niche experience and expertise. As an export-oriented project, this deepens Bahrain’s ties with key markets, serving as a gateway for leading players in the logistics and manufacturing industry to tap into the Middle East and North Africa market and beyond.”

The facility will be purpose-built to serve fast-growing industries such as medical, aerospace, automotive, and energy, meeting the increasing global demand for titanium products, a niche commodity gaining traction worldwide surging Bahrain’s exports to international markets.

H.E. Abdulla bin Adel Fakhro, Minister of Industry and Commerce, said, “Marking the first specialised Titanium facility to be established in the region, Interlink has earned a solid reputation as one of the largest traders and suppliers of titanium in the world. Bringing these international institutions to Bahrain plays a pivotal role in enhancing the diversity, quality, and overall investment value of the national industrial sector, which contributes to increasing Bahrain’s economic competitiveness and elevating its standing as a leading export hub on the global map.”

H.E. Shaikh Abdulla bin Khalifa Al Khalifa, CEO of Mumtalakat and Chairman of Bahrain Real Estate Investment Company (Edamah), added, “We are pleased to sign this agreement with Bahrain Titanium, which marks a crucial step in facilitating their local operations enabling them to take advantage of Bahrain’s strategic location and world-class logistics infrastructure. As the first facility of its kind, this landmark signing underscores our commitment to expanding and diversifying Bahrain’s robust property portfolio with premium projects that foster innovation across priority sectors of the economy, in line with the national vision.” Igor Raykhelson, Chairman of Interlink Metals & Chemicals, said, “As part of Interlink’s roadmap for global expansion, Bahrain was a clear destination of choice given its Free Trade Agreement ratified with the US, strategic location, competitive operating costs, and availability of experienced and highly skilled local talent. The blueprint for the new Bahrain-based plant outlines the use of state-of-the-art technology and advanced manufacturing processes to meet the highest industry standards in energy efficiency and waste management, with a minimal carbon footprint.”

Source:https://www.bahrainedb.com/latest-news/edamah-signs-lease-agreement-with-interlink-for-over-usd-200-million-facility-in-bahrain

Bahrain has achieved the ranking of 1st in the Middle East and North Africa (MENA) in trade, investment, and financial freedom for the third consecutive year according to the 2024 Index of Economic Freedom, an annual guide published by The Heritage Foundation, Washington’s leading think tank. With an economic freedom score higher than the world and regional averages, Bahrain’s overall performance additionally improved on a global comparative, climbing 14 positions since last year.

Nada Al Saeed, Chief of Strategy at Bahrain Economic Development Board (Bahrain EDB) said, “Economic freedom, backed by sound regulatory environments and market openness are strongly linked to achieving progress and sustainable economic growth. Securing top rankings and achieving a robust performance across pivotal indices of the Heritage Foundation cements Bahrain’s established position as a financially liberal and open regional hub of trade and maintaining these favourable standings remains our priority at Bahrain EDB as we work towards ensuring the island nation remains attractive to investment.”

By assigning weighted scores and analysing macroeconomic data across 184 economies, the 2024 Index assesses both quantitative and qualitative factors across four key pillars to determine economic freedom, namely rule of law, government size, regulatory efficiency, and open markets. Bahrain performed quite well across several pillars, where the overall investment framework was found to be streamlined, positive, and transparent, where both foreign and domestic investors were determined to have facilitated access to a wide range of financial services. Bolstered by a well-institutionalized and efficient regulatory environment, Bahrain’s business freedom and monetary freedom score were additionally determined to be higher than the world average.

The Heritage Foundation 2024 report stated, “Despite the challenging global economic environment, the country (Bahrain) continues to be a dynamic business hub. Its openness to global commerce is sustained by a competitive regulatory environment. Enhancing the foundations of economic freedom by further improving the rule of law and fiscal policy remains critical to ensuring the country’s ongoing evolution.” With its long history as a trading hub, Bahrain has demonstrated a vested commitment to diversifying its economy and fostering a business-friendly investment environment, prioritising the development of a robust, digitally ready economy, and consistently pioneering regulatory policies and legislative frameworks to ensure its international competitiveness. Over a span of two decades, Bahrain’s economy secured an impressive average annual growth of 8%, surpassing the global average of 5%, wherein nominal GDP increased from around USD 10 billion in 2002 to over USD 44 billion in 2022.

Source:https://www.bahrainedb.com/latest-news/bahrain-ranks-1st-in-mena-in-trade-investment-and-financial-freedom-for-the-third-consecutive-year

In the first ten months of 2023, local banks have experienced a notable decline in the monthly financing they extend to the industrial sector, marking a significant 32.4 percent decrease from the corresponding period in 2022. The total monthly financing dropped from 1.359 billion dinars in 2022 to 918.7 million dinars in 2023. Insights from the Central Bank of Kuwait’s October statistics reveal a monthly upswing of 32.6 percent, with financing reaching 18.5 million dinars. However, this figure depicts a substantial 52.3 percent year-on-year reduction from 157.9 million dinars in October 2022.

Examining the trajectory of financing within the industrial sector, February 2022 saw the pinnacle with financing exceeding 414 million dinars. In contrast, the sector witnessed its lowest point in September 2023, with financing reaching approximately 56.8 million dinars. This decline in financing to the industrial sector coincides with a reduction in new monthly credit facilities, aggregated over ten months, by 1.8 percent.

The total credit facilities dwindled from 19.28 billion dinars in 2022 to 18.921 billion in 2023. However, every month, credit facilities surged by 36.2 percent, totaling 1.875 billion dinars in October, up from 1.376 billion dinars in September. The accumulated balance of industrial financing provided by local banks witnessed a 5.7 percent annual dip, totaling 167.6 million dinars.

This decline is evident when comparing October 2022’s figure of 2.922 billion dinars to October 2023’s reduced balance of 2.754 billion dinars. While this balance decreased by 2.2 percent and approximately 61.9 million dinars compared to December 2022, it increased monthly by 0.4 percent, amounting to 11.6 million dinars. This positive shift came after registering 2.743 billion dinars in September. In contrast, the total cash credit facilities provided by banks across all sectors showcased a growth of 1.3 percent during the initial ten months of 2023, amounting to 677.9 million dinars.

Monthly, this figure increased by 0.5 percent, reaching approximately 296.2 million dinars in October, up from 52.828 billion dinars at the end of September. On an annual basis, the total cash credit facilities increased by about 998.6 million dinars, surpassing 52.126 billion dinars in October 2022. The industrial sector has faced a multitude of challenges over the last three years, emerging as one of the main sectors adversely affected by the COVID-19 pandemic. The imposition of bans and the suspension of corporate activities, coupled with disruptions in the supply and production chain, has led to significant setbacks for the industrial sector. Additionally, the sector has suffered from reduced demand and limited new projects within the country. These multifaceted challenges have had a substantial impact on local industrial projects, clearly reflected in the decline in funding received by the sector during the initial ten months of 2023 compared to the same period last year.

Source:https://www.arabtimesonline.com/news/kuwait-banks-financing-of-the-industrial-sector-declined-in-1st-10-months-of-23/

The financing provided by local banks to the industrial sector saw a significant increase in January compared to December 2023, rising by 123.5% to 148.9 million dinars from 66.6 million dinars. This surge represents a noteworthy boost in funding for industrial activities within Kuwait. Moreover, on an annual basis, this increase amounted to 38.3% from 107.6 million dinars in January 2023. The rise in financing indicates a positive trend in supporting industrial development and growth in the country. Simultaneously, the accumulated balance of industry financing also witnessed growth, indicating sustained investment in the sector.

The balance increased by 1.5% monthly, reaching 2.686 billion dinars in January 2024 from 2.646 billion dinars in December 2023. Despite this monthly increase, there was a 6.1% decrease in the accumulated balance compared to January 2023, where it stood at 2.861 billion dinars. While there was a slight decline from the previous year, the ongoing investment in industry financing underscores the importance of this sector in Kuwait’s economic landscape.

Monthly statistics from the Central Bank of Kuwait for the year 2023 provide further insights into the dynamics of financing within the industrial sector. Total monthly financing to the industrial sector witnessed a notable decline of 31% during the fiscal year, amounting to 1.033 billion dinars in December 2023 compared to 1.499 billion dinars in December 2022.

This significant reduction reflects various challenges faced by the industry sector, including the impacts of the COVID-19 pandemic and disruptions in global supply chains. Moreover, December 2023 saw a staggering 90.7% decrease in financing compared to the same period in 2022, dropping from 73.8 million dinars to 7.2 million dinars. This drastic decline underscores the volatility and uncertainties that characterized the industrial sector during the past year.

However, despite these challenges, the resilience of the industry sector remains evident, with ongoing efforts to navigate through turbulent times and adapt to changing market conditions. The industry sector has faced numerous challenges over the past three years, exacerbated by the COVID-19 pandemic. Restrictions on corporate activities, disruptions in supply chains, and decreased demand have all contributed to the sector’s struggles.

Additionally, bureaucratic hurdles in completing transactions, reliance on imported goods, and high rental prices for industrial facilities have further compounded the challenges faced by industrial enterprises. Despite these obstacles, the Kuwaiti government continues to prioritize the development of the industrial sector and has implemented various initiatives to support its growth. These efforts include addressing bureaucratic inefficiencies, promoting domestic manufacturing, and enhancing infrastructure to facilitate industrial activities. By addressing these challenges and capitalizing on emerging opportunities, the industrial sector in Kuwait can overcome current obstacles and realize its full potential in driving economic growth and prosperity.

Source:https://www.arabtimesonline.com/news/kuwaiti-banks-increase-industrial-sector-financing-by-123-5-in-jan/

GCC countries and Türkiye will start negotiations on a free trade agreement to boost economic ties between the various parties.

Gulf Cooperation Council (GCC) Secretary General Jasem Mohamed Albudaiwi and Republic of Türkiye Minister of Trade Dr. Omer Bolat have signed an agreement to start negotiations on a Free Trade Agreement (FTA) in a move that, according to Albdaiwi, proves the robust and strategic partnership the two sides enjoy.

Albudaiwi also said that the agreement also showcases successful regional and international cooperation in the field of commerce, economy, and finance.

GCC-Türkiye trade
He said the close cooperation between Türkiye and the GCC countries helps boost economic relations, adding that there is mutual desire to further cooperate to expand trade and investment.

Albudaiwi stressed that Gulf countries are engaged in free trade negotiations with other nations, to open up trade opportunities, promote economic cooperation, and open up markets for their goods and services, adding that this is part of the bloc’s endeavour to diversify sources of income and foster economic growth.

Source:https://www.arabianbusiness.com/politics-economics/gcc-seeks-free-trade-agreement-with-turkiye-for-uae-saudi-arabia-qatar-kuwait-bahrain-and-oman