Kingdom eyes small businesses as motor for growth in economic expansion

Bahrain, 17 May 2011: A billion-dollar 'technology city' slated for Bahrain International Investment Park is expected to boost growth in high-tech, knowledge-based industries, according to Esam Abdulla Fakhro, Chairman of the Bahrain Chamber of Commerce and Industry (BCCI).

Fakhro said that the project, which is a joint venture between the Economic Development Board and Kuwait Finance House-Bahrain, would bolster the Kingdom's plans to make its industrial sector more competitive and shift the economy away from a reliance on oil.

The Chairman of the BCCI was speaking exclusively to Oxford Business Group (OBG), the global publishing, research and consultancy firm. The full interview with Fakhro appears in The Report: Bahrain 2011, OBG's forthcoming guide on the Kingdom's economic activity and investment opportunities.

Fakhro said that the 'technology city' project formed part of Bahrain's bid to tap industrial investment and increase the role of the private sector in line with the Kingdom's long-term economic roadmap, the Bahrain Economic Vision 2030.

"The project will focus on the manufacturing and assembly of computers, electronics, pharmaceuticals and medical supplies," he said. "It will also aim to embrace SMEs. The private sector plays a major role in establishing and promoting industry through technological projects."

Fakhro voiced his confidence that SMEs would be a driving force in propelling growth across Bahrain's economy, pointing out that structures had been put in place which would enable them to play a key part in its expansion.

"SMEs will continue to play a major role in creating jobs. They provide an alternative way to improve standards of living and mitigate negative effects of unemployment, particularly for young people," he said. "With the BCCI's support, SMEs in Bahrain are set to achieve great success commercially and become a global model emulated by countries around the world."  

Fakhro said that expanding Bahrain's heavy industries, spearheaded by the key aluminium segment, was a priority for the Kingdom. He acknowledged there were concerns about finite energy reserves, but said plans to expand Bahrain's aluminium industry would drive forward the development of value-added products, ensuring gas exploitation brought maximum economic benefit.

"The issue of limited energy is certainly a concern, but efforts are under way to find and utilise economically feasible alternatives," he said. "Despite their heavy reliance on hydrocarbons, continued investments in these sectors are critical due to their important role in the national economy. The key is to facilitate the continued expansion of Bahrain's heavy industries."

The Report: Bahrain 2011 will mark the culmination of more than six months of on-the-ground research by a team of analysts from OBG. It will provide information on opportunities for foreign direct investment into Bahrain's economy and will be a guide to the many facets of the Kingdom, including its macroeconomics, infrastructure, banking and sectoral developments. The Group's report will include a detailed, sector-by-sector guide for foreign investors, together with a wide range of interviews with the most prominent economic and business leaders. It will be available in print form or online.

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About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia, Eastern Europe and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms. The Report: Bahrain 2011 is produced in partnership with the Economic Development Board (EDB), the Bahrain Insurance Association (BIA), Bahrain Association of Banks (BAB), BDO Bahrain and Qays H. Zu'bi.

The critically acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.

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© Press Release 2011