Bahrain Bay responds to 2030 Economic Vision

Bahrain Bay is a carefully planned mixed use development that is providing significant input into the existing and future economic growth of the country and is set to become one of the Kingdom's leading residential and commercial communities.

As many as 30,000 people are expected to live and work in the project. As the master developer, Bahrain Bay is not only creating the land for investors but also the infrastructure to support the individual projects and the permanent community who will reside in Bahrain Bay.

To date, the project has invested more than $230m in physical infrastructure and utilities. This includes the first two 66kv power stations which have been handed back to Government. A further two 66kv stations for a total cost of $44m are nearing completion.

Importantly, the investment being made by Bahrain Bay will be economically sustainable and will be funded by the development in perpetuity. This commercial structure will offset any future cost to the Government for providing and maintaining services within the development.

In addition to the expenditure on power requirements Bahrain Bay has also built its own dedicated district cooling plant and sewer treatment plant at a cost of $105m. The internal bridges will be completed within the next 6 months at a further cost of $12m.

An important component of creating a true community is the establishment of an enjoyable and sustainable public realm. By the time the project is completed Bahrain Bay will have spent approximately $50m on the beautification of the public spaces and waterfront areas.

Bahrain Bay will also be building three mosques in the project costing approximately $25m.
All of this infrastructure and public space will be maintained at no cost to the Government through a commercial Deed of Agreement which commits the investors in the project to a sustainable funding arrangement.

Bahrain Bay has also been successful in attracting major corporate financial institutions, such as Arcapita Bank and Al Baraka Banking Group. Both these leading institutions have elected to relocate to Bahrain Bay to establish their new corporate headquarter buildings. Their decision was supported by a commitment by Bahrain Bay to install a 'future proof' ICT fibre optic network which will ensure the fastest and most secure data service for the development. This capability is already being constructed in the infrastructure and will be operating on a competitive pricing mechanism for of all of developments within the project.

By providing a prestige location with worlds best practice amenities and services, Bahrain Bay is demonstrating direct support to the financial services sector, which is a vital and growing element of Bahrain's economy. This approach to development has been recognised by the industry and the Economic Development Board as they continue their efforts to attract foreign investment into the country.

In September, Bahrain's banking assets stood at $274bn, with 146 banks and 173 insurance companies. Bahrain Bay envisage that financial institutions will form an important core of businesses that will locate in Bahrain Bay, helping to create a new dynamic centre of financial services excellence for the region as well as job creation and wealth generation for individuals and the broader national economy.

A second key growth sector of the economy going forward will be the tourism industry. Bahrain Bay has already secured investor commitments for 5 new hotels to be developed within the project. All of these future hotels will be operated by some of the world's leading brand hotels and will act as a significant draw card for business visitors, tourists and convention attendees.

Bahrain Bay's commitment to the development will see steady investment through the duration of the project, helping to support Bahrain's $35bn construction sector; a sector which is in a far better position than many other regional real estate sectors given the conservative lending requirements placed on banks by the highly respected Central Bank of Bahrain.

Bob Vincent, CEO of Bahrain Bay, commented:

"With the launch and implementation of the Economic Vision 2030 and the National Economic Strategy, Bahrain is seeking to deliver one of the boldest economic strategies in the region. Bahrain is aiming to not only address development and planning issues, but also to shape the future direction of economic, governmental and societal progress to support the development of the national economy."

In responding to the difficult economic conditions of 2009, Mr. Vincent commented that, "Although the environment which has enveloped the property development industry this year has proved challenging, Bahrain Bay has remained on track and on budget with key milestones being met throughout the year. These include the inauguration of the Bahrain Bay BSP and Arcapita 66Kv substations in May, the handing back of the Manama High Street trough in August and most recently the accomplishment of five million accident free man hours. The work completed to date on the project shows the absolute loyalty and dedication to quality the project sees from its partners, contractors and developers."

Bahrain Bay's success was also recently recognised at the 5th Annual Construction Week Awards, which was held in Dubai earlier this month, where the project was short listed for two Awards, 'Developer of the Year' and the 'Supreme Judges Award.'

The Bahrain Bay CEO was extremely proud of these awards commenting that, "The success of Bahrain Bay in competing against the extremely high profile developments in the region was a recognition not only of the project but also of the continued efforts of the Government in enhancing economic opportunity of the Kingdom."