Shaikh Daij bin Salman Al Khalifa is the chairman of Bahrain's General Organisation of Sea ports and the Arab Shipbuilding and Repair Yard. He discusses the impact of recent unrest in Bahrain on business
What has been the impact of the recent civil unrest in Bahrain on business?
Business at both KBSP [Khalifa bin Salman Port] and ASRY [Arab Shipbuilding and Repair Yard] was affected to some extent during the recent unfortunate situation. However, operations continued throughout at both facilities and today are very close to levels before the painful incidents of 14 February. The government is taking several measures to ensure the economy and business sector emerge stronger. The Economic Development Board [EDB] recently announced it is preparing a report to identify sectors adversely affected, as well as the best measures to face and overcome challenges and support businesses and investors. The report will take into account the new government budget, the strategies Bahrain will follow to maximise benefits from the $10 billion fund allocated over the next 10 years as part of the Gulf Development Programme, as well as supporting new investment projects in Bahrain during the current year. Bahrain is moving to rapidly develop its economy and I am confident it will soon be back on a path of growth and prosperity.
To what extent has Bahrain's image as an investment destination been hurt by recent events? How can it restore its image?
I do not think Bahrain's image as an investment destination has been adversely affected by recent events; Bahrain has always had a positive image internationally, thanks to the reforms and democratisation processes introduced by His Majesty King Hamad bin Isa al Khalifa over the last 10 years. The EDB recently announced that it has been in constant contact with foreign and local companies operating in Bahrain, and was assured of their commitment to maintaining their presence in the country. The EDB's support to these companies will go hand-in-hand with planned initiatives at Tamkeen [Bahrain's labour fund] to support small and medium enterprises. The government will continue to support global firms and investors in every way possible.
What is your outlook for Bahrain's shipping industry, and business at ASRY, in 2011?
The shipping industry outlook is very positive. Both transhipment volumes and general cargo volumes are expected to grow more quickly than in 2010, with an anticipated spurt in economic activity both in Bahrain and the region. Likewise, 2011 is definitely going to be better than 2010 for ASRY in terms of business volumes and profitability, and with the completion of its ongoing expansion, its capabilities will be significantly enhanced.
Has your outlook changed in light of recent events in Bahrain?
Though recent events have affected the economy to some extent, the entire government machinery has been galvanised to further improve performance in every respect, not only to restore normalcy but also to speed up development of the economy. I have no doubt that the kingdom's dynamic private sector, with increased government support, will also reassert itself with greater vigour.
What are the main challenges facing Bahrain ports and shipping business?
Two main challenges are increasing competition from other regional ports and the slow recovery of the shipping industry to date. I always see competition as a healthy phenomenon. Furthermore, Bahrain has several unique advantages over many of its neighbours. It is strategically located on the doorstep of huge markets in the Northern Gulf, it has a new modern port leveraged by Bahrain Logistics Zone, and is supported by world-class, well-integrated infrastructure and connectivity by air, road and sea. Regarding the shipping industry, the recessionary trends witnessed since late 2008 were only cyclical, though the magnitude of the crisis was unprecedented in recent times. However, with more and more shipping lines reporting improved performance and profitability since H2 2010, I am optimistic the industry will return to growth and development in the near future. To position Bahrain as a major business centre, transhipment hub and investment destination, the General Organisation of Sea Ports (GOP) has been taking several initiatives to increase the kingdom's competitiveness, regulations, maritime infrastructure and services and standards. Perhaps the most important initiative currently being undertaken by GOP is the finalisation of a new set of maritime laws for Bahrain, known as the 'maritime code,' which is expected to be passed through legislative processes within a year or two. We are actively promoting our facilities internationally to further consolidate the kingdom's position as the ideal transhipment hub for the region, especially for northern Gulf markets.
The Gulf 2011
