Investments to hit $650m
BAHRAIN’S foreign direct investment (FDI) is forecast to jump 10 times this year compared with a decade ago.
His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, yesterday said that the FDI forecast would be $650 million this year, up from $65m in 2008.
He was speaking during a presentation on government progress and plans for the future at the Government Forum 2018, held under the patronage of His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa at the Isa Cultural Centre.
“Bahrain’s Economic Vision 2030, launched in 2008, has been pursued in line with its three founding principles: Sustainability, competitiveness and fairness,” said the Crown Prince.
“Despite challenges faced over the past decade, the vision has helped to ensure Bahrain’s development is based on strong economic fundamentals, with non-oil sector growth standing at five per cent last year, and FDI forecast to be $650m this year, up from $65m in 2008.
“Over the last 12 months, the government has made significant progress in delivering the vision’s core priorities by supporting private sector growth as the main engine of economic development, encouraging greater innovation and enhancing citizens’ living standards.
“As part of the Government Action Plan (2015-2018), a range of new laws have been passed in collaboration with parliament, including measures regulating bankruptcy and real estate development.”
The Crown Prince also detailed the government’s Fiscal Balance Programme, which was announced earlier this month and aims to align government revenues with economic growth and eliminate Bahrain’s budget deficit by 2022.
The programme is supported by a $10 billion Financial Support Agreement signed between Bahrain, Saudi Arabia, the UAE and Kuwait.
The agreement will be spread over five years and will include loans, deposits and grants. It will support Bahrain’s fiscal reform plan that is expected to involve spending cuts and measures to increase non-oil revenue, including the introduction of Value-Added Tax.The support will help bolster Bahrain’s currency and also allow it to borrow from international debt markets at cheaper interest rates.
“Despite previous challenges faced by Bahrain, the united efforts of Team Bahrain will ensure all obstacles are overcome now and in the future,” the Crown Prince said during the presentation.
“Key socioeconomic reforms that are underway include a government housing programme to deliver 25,000 new housing units, of which 20,000 have been allocated and the government will allocate an additional 5,000 housing units by the end of this year.
“The new pioneering health insurance law will ensure health insurance coverage for all citizens and residents.”
He also highlighted the government’s regulatory reforms that have encouraged innovation and private sector growth in the country.
“We are launching Sijilat 2.0, an update to the successful online commercial registration (CR) service launched in May 2016, as the success of Sijilat has opened doors to similar streamlined processes in other sectors,” he added.
“In this regard, we are also launching Binayat (buildings), a streamlined process for issuing building permits within five days.”
He also provided an update on various infrastructure projects including the expansion of Bahrain International Airport, which he said was expected to be opened before the next edition of the forum; the launch of strategic road network projects; and the construction of King Hamad Causeway.
“Bahrain’s recognition as an international leader in migrant worker protection and combating human trafficking has made it the first country in the Middle East and North Africa to be granted Tier 1 status in the US Department of State Trafficking in Persons Report,” he added.
“The country has also taken steps to increase employment of Bahraini nationals and received global recognition for its introduction of flexible work permits, which grant expatriates the opportunity to work for more than a single employer at a time.”
Meanwhile, the Crown Prince emphasised the government’s commitment to continuously improve public services and efficiency.
“With the launch of Taqyeem (Government Service Centre Evaluation) last year, the government now tracks Key Performance Indicators (KPI) for all 89 government service centres,” he explained.
“In the first yearly evaluation, 10 centres received a ‘Gold classification’ under the Taqyeem system, and the results will now be made available to the public on an annual basis.
“A number of submissions received through the Fikra programme, a new innovation competition launched this year, which seeks public sector employees’ policy suggestions, has seen 565 submissions being considered.”
A documentary showcasing the country’s projects and schemes over the past year was also screened at the forum.
