MANAMA: The Kingdom of Bahrain and Sri Lanka on Tuesday explored the avenues of co-operation in all vital sectors the Minister of Industry and Commerce Dr. Hasan Fakhro opened Bahrain-Sri Lanka Business Forum at the BCCI.
“There are many sectors and sub-sectors which may have promising opportunities for Sri Lankan investors, and areas of potential cooperation particularly in foodstuffs and building materials, tourism, textiles, garment manufacturing and banking,” the Minister added.
Marking the historic State visit of His Excellency Mahinda Rajapaksa President of Sri Lanka, Dr. Hassan Fakhro opened Bahrain-Sri Lanka Business Forum in presence of Finance Minister Shaikh Mohammed Al Khalifa, Minister of Labour Jameel Hamidan and Sri Lankan Ambassador Anwar Rajakaruna, Second Deputy Chairman of BCCI Jawad Al Hawaj and a number of businessmen and businesswomen.
Dr. Fakhro delivered a speech stating that a number of agreements and memoranda of understanding have been entered into between our two countries over the years, including an Avoidance of Double Taxation Agreement; a Memorandum of Understanding on Economic, Trade and Technical Cooperation, which was signed in 2009, an Agreement of Cooperation with the Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL) ; and an Agreement for the Establishment of a Joint Business Council with Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL, as well as a Cooperation Agreement between The Bahrain Chamber of Commerce and Industry (BCCI) and The Sri Lanka Chamber of Commerce, which was signed in 2007.
He added that our bi-lateral non-oil trade has increased from around US$9 million in 2006 to reach some US$30 million by 2011 is a good indication that these agreements have been bearing fruit, but I am certain that much more can be done to increase our mutual trade and investment, and this important visit of President Rajapaksa, provides us with a golden opportunity to launch a new effort to invigorate our mutual business relationship.
The Minister confirmed that Bahrain is home to some 20 companies with Sri Lanka ownership and working in a variety of different fields, and we are also proud that many Sri Lankan nationals have been, and continue to work in both our public and private sectors at all levels in practically all professions from carpenters to doctors, storekeepers to pharmacists, all of whom play a continuing and important role in Bahrain’s socio-economic development.
The relationship between Bahrain and Sri Lanka has been excellent since diplomatic relations were first established, and as a nation we have the highest respect for Sri Lankan nationals, we are proud to have you as residents, and we are proud to welcome you as businesses in all sectors of our economy, whether this be as manufacturers or service providers.
Dr. Fakhro affirmed that Bahrain is a welcoming environment for foreign investors, and we take pride in our continuously high rankings in many international business friendly indices, including such renowned analysis as the Heritage Foundation’s Index of Economic Freedom. Why does Bahrain get such high rakings, scoring not only above other countries in the region, but amongst the highest in the world? It is because of one single all-encompassing characteristic that I would say sets Bahrain apart and I would articulate this as being “legitimacy”. Legitimacy for me means that we embrace the Rule of Law, we strive to be the best at what we do, whether it be in terms of our laws and regulations, our domestic and international policies, or simply in the way that we honor and respect the individual irrespective of ethnicity and strive in all ways to uphold the principles of a truly secular State. The stand of both of us to terrorism is a testimony to how we want to work together.
It is this “legitimacy” that has underpinned Bahrain’s rise as an important Financial Centre, and helped in avoiding the contagion felt across the globe during the financial crisis; and it is this that will ensure our future growth and stability, and will continue to encourage international investors, including more we hope from Sri Lanka, to invest with us in a myriad of opportunities both in Bahrain and using Bahrain as a gateway to the Middle East and North African (MENA) region.
He added that Bahrain was the first country in the region to sign a Free Trade Agreement with the United States, and which has had a significant effect on Foreign Direct Investment, as smart manufacturers have sought to use the duty free benefit offered by the FTA to manufacture products in Bahrain for the US market. At the same time our intelligent manufacturing and industrial areas, such as Salman Industrial City, are playing an important role in encouraging investors to take advantage of our business friendly environment, and I would encourage our Sri Lankan guests here today to look really closely at what Bahrain can offer, both as a manufacturing centre for duty free exports to the immediate region, as well as being a hub for trade with the greater North African and Middle East region.
In Bahrain foreign investors can incorporate companies with 100% foreign ownership and operate in practically all sectors. Setting up a business is straight forward and can be achieved literally in days provided that all of the required documents are available; our cost base is the lowest in the region and residents enjoy a comfortable relaxed cosmopolitan social environment.
“We are determined to achieve continued future economic growth by reaching our Vision 2030 targets, and for me this translates into providing a higher level of industrial and commercial services, more serviced industrial land availability, and to generally raising the standard of our already business friendly commercial environment. The Ministry of Industry and Commerce’s industrial policy, in support of the overall Government Vision 2030, is firmly anchored in the premise that manufacturing is important to promote economic growth and development, and a core element in that policy is making more industrial land available for future projects to support the growing demand, and to support manufacturing towards higher levels of innovation and productivity.”
It is clear that manufacturing does and will continue to play an important role in the economy, both in terms of generating revenue, and also in providing employment opportunities for the growing population. The need to enhance productivity and move up the value chain to provide better paid jobs is paramount, and it is for this very reason that our industrial policy is focused on creating high value added industries in those sectors of the economy which the Government has identified as being attractive and supportive of the building of a knowledge based economy.
The Government has made substantial investments in facilities such as the Bahrain International Investment Park, and is looking seriously at the feasibility of creating a new Economic City, which would be a huge multi-billion Dollar game-changing development of mixed commercial, industrial and urban living to create a new paradigm for Bahrain’s future growth. There are also numerous other large infrastructure projects in the pipeline in public works, in housing, in communications etc., to name but a few, including we hope the development of a causeway to link Bahrain with Qatar. In short, we have so much going on, and we would welcome the involvement of our Sri Lankan friends in all aspects of our future.
The Minister of External Affairs of Sri Lanka Prof. G.L. Pieris delivered a speech, followed a speech by Minister of Industry and Commerce of Sri Lanka Rishard Bathiudee and a speech by Second Deputy Chairman of BCCI Jawad Al Hawaj.
On the sidelines of the Forum, a Memorandum of Understanding was signed between the Bahrain of Chamber of Commerce and Industry and the Women’s Chamber of Industry and Commerce (WCIC). The memorandum is signed by Second Deputy Chairman of BCCI Jawad Al Hawaj and Chairperson of Women’s Chambers of Industry and Commerce of Sri Lanka Dr. Sarosh Dubash.
The forum has two panels of discussions. The first one was about Opportunities for Sri Lankan business in Bahrain and participated by Dr. Esam Fakhro, Chairman of Abdulla Yousef Fakhro and Sons Group, Osama Alarrayedh, Undersecretary, of Industry and Affairs – Ministry of Industry and Commerce Shaikh Salman bin Isa Al-Khalifa Executive Director for Banking Operations Central Bank of Bahrain and Abdulrahman Jawahery, president of Gulf petrochemical Industries (GPIC).
The second discussion was about trade, tourism and investment in Sri Lanka and participated by. Badula Egodage, Chairman of Sri Lanka export development, Dr. D. S. Jayaweera, Director General of Sri Lanka Tourism and K.D. Lawrance, Director of Board Investment of Sri Lanka.