A.T. Kearney views changes in Bahrain

Monitoring the Kingdom's strategic changes, A.T. Kearney believes that the ongoing transformations will assist Bahrain to gain the top spot for business in the Gulf.

First observations, which herald the beginning of change, were the recent foundation of a Labor Market Regulatory Authority (LMRA), which will lead the labor market reform and replace Bahrainization quotas with a system that aims to increase the competitiveness of Bahrainis in the labor market. The new system seeks to simplify administrative procedures, create a better working environment and control unemployment. In addition to the LMRA, a Labor Fund will invest into the improvement of the work force to provide highly skilled resources and high value job opportunities.

Important, in the eyes of Robert Ziegler, Principal, A.T. Kearney, Dubai, is also the Education and Healthcare Reform to improve the quality of education in Bahrain in order to provide the right quality of employees and to raise the level of healthcare provided in the Kingdom.

"People are valuable assets and have to be treated as such. This is why Bahrain will improve the delivery and quality of healthcare services to all residents in Bahrain," commented Robert Ziegler.

Bahrain's Development Bank will need to play a key role in the coming reforms, as it will facilitate access to capital and provide start up support to investors. While company laws will need to be reformed to facilitate company start-up and foreign direct investment (FDI). But in the centre of the reform plan is the creation of Mumtalakat, a government holding company similar to Temasek in Singapore or Mubadala in Abu Dhabi, to manage and restructure the existing portfolio of government-owned companies, such as Gulf Air, ALBA, NBB, Batelco, and to invest into strategic assets for the Kingdom around the world.

A.T. Kearney is supporting Bahrain in the creation of a professionally operated free zone in the new Khalifa Bin Salman port in the Hidd industrial district. This facility will drastically improve the logistical infrastructure in Bahrain, increasing the volume of transshipments via Bahrain and attracting new and innovative industries to the Kingdom. The ongoing collaboration, between the General Organization of Sea Ports (GOP), the private sector in Bahrain and A.T. Kearney, to plan this Free Economic Zone, will add substantial value to the economy of Bahrain.

"All these reforms will make the Kingdom the most attractive business environment in the region, attracting diversified investments from the region and abroad," concludes Ziegler.