Gulf Air Grand Prix is a proud day for Bahrain

For once Dubai has missed out on an opportunity for international self-promotion, and the honour of staging the Middle East's first-ever Grand Prix will go to Bahrain next month.

Formula One has come to represent the very essence of multinational brand marketing, and commands one of the biggest audiences of any single global sporting event. This has made its promoter Bernie Ecclestone one of the richest men in Britain.

There is thus an important symbolism to the event being staged in the Middle East. It highlights the fact that the region is a part of the global economy with its trade and commerce increasingly dominated by the multinational giants.

And for Bahrain the event focuses attention on the spectacular changes of recent years. In the late 1990s Bahrain was a troubled place with terrorist incidents and a moribund economy.

Now transformed into a constitutional monarchy, Bahrain is undergoing a renaissance with security re-established. The centre piece will be the Bahrain International Financial Harbour, a new multi-billion dollar home for the island state's dynamic financial community.

The signs of economic health are visible in the many cranes that now dominate the Manama skyline. For the new Kingdom is benefiting from the fruits of political and economic liberalization, combined with a four-year stretch of high oil prices.

Bahrain will surely be hoping that the multinationals that follow the Grand Prix as sponsors will also pay attention to the sponsoring nation. The Kingdom of Bahrain is one of the few places in the Middle East where the reform agenda has taken a giant leap forward.

Multinationals looking to participate in the economic boom now in progress in the region should pay attention. And they should heed the call for foreign direct investment in Bahrain which offers 100% foreign ownership, and where every share traded on the local stock market can be bought by foreigners.

Other countries in the region might also care to look to Bahrain as a beacon of economic liberalization and internal reform. Perhaps they too should consider whether to put their foot down on this particular accelerator.