The EDB attracted investments in 2012 from North America, Europe and Asia as well as the Middle East region. These will help create close to 900 jobs over the course of three years across a range of sectors including financial and professional services, logistics and renewable energy. Non- financial services related investments comprised of over $102 million, particularly in the areas of professional services and information and communications technology (ICT).
During the course of the year the EDB continued to assist companies that had initiated projects in the Kingdom in 2011, including the inauguration of projects by German industrial firm RMA and German chemical company BASF. These businesses, along with Indian Polyester Company JBF, invested $200 million during the course of 2011, and will help create over 500 jobs over the course of three years in the Kingdom.
As a leading business and financial hub at the heart of the Gulf, a market now worth $1.4 trillion, Bahrain has long been considered the gateway to the region, with easy access to the large economies of Saudi Arabia, Kuwait and Qatar. The Kingdom’s highly skilled bilingual local workforce and low cost of doing business mean that it is a natural home for firms looking to invest in the region.
“We are delighted at the ongoing international investment we have seen in 2012. The increase in the number of foreign investors over the last year illustrates the Kingdom’s wide-ranging attractions; from the most skilled workforce in the region and liberal business environment to the low costs, competitive taxation and ready access to the GCC market,” Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the EDB, said.
“As we look forward to 2013, the EDB, both in Bahrain and in our offices around the world, will continue to work alongside our key partners across Government and the private sector, to ensure we help deliver further opportunities for Bahrain.”
The Kingdom’s favourable business conditions were further endorsed in 2012 by the Heritage Foundation’s Index of Economic Freedom, in which the Kingdom was ranked first in the Middle East and North Africa region in recognition of Bahrain’s strong economic fundamentals. Bahrain was also recently ranked number one, alongside the UAE, in the Fraser Institute’s annual report on Economic Freedom of the Arab World. The Kingdom has been ranked in first place in the Fraser Institute’s report since 2009.
PineBridge Investments, the global multi-asset class investment manager, selected Bahrain as the location for its MENA headquarters. PineBridge received a Category 1 license from the Central Bank of Bahrain and has established its regional headquarters in Manama. The new firm, PineBridge Investments Middle East will cover the Middle East, North Africa and Turkey. PineBridge currently has offices in Dubai and Istanbul, and has $67 billion of assets under management.
International Service Company Serco Consulting opened consulting offices in Bahrain, which will serve significant projects being undertaken by the Company in the Kingdom of Saudi Arabia. Serco Consulting offers a range of management and operations consulting services across the financial services, telecommunications, utilities and public sector markets.
Notz Stucki, the Geneva-based asset management firm, selected Bahrain as the location for its regional office in the Middle East. The Notz Stucki Group is one of the largest independent asset management companies in Europe, with $7.5 billion of assets under management.
First Flight Couriers, India’s largest domestic and international courier company launched its Bahrain office this year. First Flight Couriers (Middle East) is a significant player in express courier services in the UAE. Their Middle East operations now serves more than 250 countries and covers 1800 destinations, with a network of 930 own offices and 8 international offshoots.
Petra Solar, the US based provider of smart energy solutions, launched a five megawatt solar energy pilot project in Bahrain. This project marked the first phase of a national energy plan to generate electricity from renewable sources. The solar energy project is a collaborative effort between the Bahrain Petroleum Company, the EDB, Petra Solar, Caspian Energy Holdings, the National Oil and Gas Authority, the Electricity & Water Authority, and the University of Bahrain. Petra Solar was selected by the Bahrain Petroleum Company to install the distributed smart solar system to supply electricity throughout the BAPCO township of Awali, the University of Bahrain, and other locations in the Kingdom.
Al Zayani Investments entered into a Joint Venture Agreement with Imerys, the world leader in mineral-based specialty solutions for industry, headquartered in France. Treibacher Al Zayani Schleifmittel WLL will manufacture white fused alumina in Bahrain. The project is being established in Salman Industrial City, Hidd for approximately US$ 30 Million. Gulf House engineering has been appointed to design and oversee the construction of the factory, which is expected to start up at the end of 2013.
The French consultancy company, Galitt, announced that it would base its regional office in Bahrain. The company specialises in payment systems and secure electronic transactions, is involved in pivotal projects around the world, including Near Field Communication.