Reform and innovation key to Bahrain's future success

Shaikh Mohammed Bin Essa Al Khalifa, CEO of the Bahrain Economic development Board told the conference Fund Forum Middle-East 2008 that no region on earth can escape the credit crunch but the Gulf Region is better insulated than any other.

He urged the 500 international business delegates that while no-one should be complacent there was good cause for optimism for the future.

He said: "A few short years ago, many in the old investment centres of the world might have looked at shari'a finance as an esoteric side show.

"Today we can fairly claim that the principles of honesty, prudence and moderation that underpin shari'a have never been more relevant - for investments of all kinds. That's why shari'a investment is expanding so fast, as we see all the time in Bahrain.

"Bahrain has a long track record of working closely with neighbours and we have built our financial services to be a gateway for global institutions seeking to share the growth of Gulf economies.

"We take this gateway role very seriously. Over many years we have transformed Bahrain into the region's freest economy, as measured independently by the Heritage Foundation."

Shaikh Mohammed outlined some of the key advantages for businesses including lowest taxes and operation costs in the Gulf, most skilled workforce and a transparent and trusted regulatory framework.

The main focus of the forum is investment funds and he revealed that Bahrain now has more that 2,370 registered funds with a wide range of investment choice.

He concluded:

"The fact that we are part of the global economy, based on our oil resources, ensures that we will have a long term future in the global economy. It's not only that we are diversifying but we are investing in the right areas and now more than ever, I think, what I would encourage you to do from your perspective is to look at the opportunities that exist ahead of us. Yes there are challenges, but there are also good opportunities in Bahrain."

The sessions of the four-day forum will discuss issues such as how the Middle East is "de-coupling" from the US, the impact of the global crisis, the pegging of local currencies to the US dollar and future investment opportunities.