Bahrain Bankers’ Society

Your Excellencies, Ladies and Gentlemen.

Thank you for the invitation to join you this evening. It is a real pleasure and privilege to be able to spend time with you – a group of people that has had such a positive impact on the economy of our country and wellbeing of our people.

I believe in creating the best possible future for this country. I believe in the talents and strengths of the Bahraini people. And I have faith that these beliefs are shared by those of you in this room today.
As many of you will know, I am passionate about how Government can work with you, our business leaders, to shape the future success of the Kingdom. In my role as chairman of the Economic Development Board it is something I take very seriously indeed.

Shaping the future is not an easy task, as I am sure you are all too well aware. There are so many intangibles; so many determining factors are out of our hands. But what is important is that we have a clear vision. One that is shared by government, by business and by the people.

We can only reach our goals by first defining them. That is why we have worked to develop a plan for the future which takes us from our current position as regional pioneer, to one of global contender. Looking ahead it is imperative that we measure our success not on a scale with our neighbours, but against the best in the world.

Our vision is to build a nation that is more prosperous, more educated, more skilled, healthier and more driven to succeed. We are looking ahead – we are focused on the Bahrain a decade from now.
Look around and you will see that new technologies and new levels of global integration are opening up opportunities for those nations who are willing and able to embrace the future. In front of us is the opportunity to build a country of which our children will be proud, if we focus our efforts and if we define our goals and how best to reach them.

We are fortunate in that we have benefited from our oil and natural resources, but we are no longer able to rely on a future fuelled solely by its wealth. That is why we are using the revenue to build an economy and an infrastructure that is more diversified and less oil-dependent that it has been for generations.

Our current achievements as a nation have not gone unnoticed. We are the freest economy in the Arab World – the Wall Street Journal and Heritage Foundation have acknowledged that fact for the last 13 years. The Financial Times FDi Magazine awarded us the title ‘Middle East City of the Future’ for 2006 and 2007. More companies in the financial sector chose Bahrain as a base than any other country in the MENA region. We are the Middle East’s financial capital, and the world centre for the burgeoning Islamic Finance sector.

Together, we have made significant strides. Our GDP is growing steadily and sustainably – at an average of more than 6 percent year-on-year since 2000, and at 8 percent in 2006.

Those of you here in this room today are in no small part responsible for that. Our financial sector has been at the heart of our diversification strategy for decades. You make the single largest contribution to our economy – more than a quarter of total GDP. The sector also provides careers of value – value that goes above and beyond a monthly salary.

This is something that we do not take for granted. The creation of high-value jobs is a critical part of our vision. It is imperative that we not only equip our people with the right skills, but also provide them with the opportunities to use those skills for individual and collective reward.

We have identified four guiding principles for shaping our future success.

First, a commitment to fairness and justice. Second, a clear dedication to competitiveness. Third, an emphasis on sustainability. And finally, our devotion to building talent.

Opportunity for all must be at the heart of our national policies if we are to truly deliver a successful future for our people. One in which they are able to shape their own destinies, one where they can dare to dream all that they can become.

In your sector – in banking and finance – I believe that we have never been better placed to grow and expand as a nation. To be able to develop that opportunity for all. We are now able to capitalise on our unique financial heritage and success. To move from our position as a regional pioneer, to become a true global contender.

Recently The Banker Magazine referred to you – our financial services sector – as ‘masters of reinvention,’ citing your ‘core integrity’ as the determining factor in your success to date. It is high praise indeed, and well deserved. We have always used foresight, always innovated, always adapted. Bahrain was the first country in the Gulf to recognise the use of coinage as a means of enhancing our trade and financial activity. Indeed, this was a critical factor in building our early reputation as a commercial centre. Now, we are again looking to the future to sustain and expand on that success. We are leading the evolution of regional finance.

Look at the opportunities in Islamic finance. In funds. In alternatives. Look at the opportunities to provide venture capital for a new breed of Bahraini entrepreneurs. As a nation, we are responding to Gulf-wide competition. We are rising to the challenge. We are poised. We are ready.

We see that creativity, innovation, and productivity will be key drivers through which we can help to position Bahrain as the place for finance now and in the future. With these values as our focus we can develop competencies that cannot be easily replicated elsewhere anywhere around the globe, let alone across the Gulf.

We have already worked hard in terms of regulation and legislation to ensure the highest standards of transparency and flexibility. I think you will agree that we have created a climate that gives real capacity for business success.

Now, we are making sweeping changes to make sure we move beyond our position as a regional pioneer. To one as a global innovator. An international leader.

But we don’t want to lose what currently makes us special. Bahrain may offer the most cosmopolitan and welcoming living environment anywhere in the region – but what makes us unique is the safety, security and hospitality provided by a real and caring community. This is a place where the importance of family is placed firmly at the heart of life, and lifestyle.

We have identified key industry sectors that are ripe for growth. Industries that we will do all in our power to nurture and grow. But, we are clearly focused on niche, appropriate sectors that reflect not only our key natural and human resources, but also our values and aspirations as a society. These sectors include not only you and your colleagues across financial services, but also the support services – from security companies to law firms to IT providers – that you depend on to deliver the levels of service that your businesses, and your customers demand.

We have made changes to our legislation. New intellectual property laws are now in place, in line with international best practice. They are the most stringent and comprehensive in the Gulf – indeed, in the MENA region as a whole. At the same time, we have opened up the opportunities for international law firms to practice and operate in the Kingdom. Because we know that is what will help you to grow and help our economy and our people grow with you. We are laying the groundwork on which we can construct our future vision.

When we look to ahead, we know where our priorities lie. We know that our greatest resource lies not in the ground. It is not oil or gas. It is the strength and skill of our people.

Already, we have a workforce that is second to none in the Gulf. Now, we are investing in education, in training, in entrepreneurship. We are committed to building a workforce that is fit for future success in every respect. A workforce armed with the skills, the experience and the can-do attitude that will add value to your business – indeed to your industry as a whole.

We are also committed to the provision of world class healthcare. For we know that wealth creation and economic success are nothing without wellness to go with them.

We are reshaping schools and higher education systems to ensure that our young people receive the best possible education. An education that arms them with the skills, the creativity and the imagination not just to find work in the modern economy, but also to create employment opportunities for others. To innovate. To excite. To lead.

Now, more than ever, we are looking to you – our businesses and business leaders – to work with us to deliver on programmes, on projects and on promises.

We want to learn from those of you here today. More about what you need. More about how we can work, as partners and as equals, to create jobs and prosperity. To harness the opportunity that now faces us. Now and for the future.

We have never been better placed as a nation to reach out, to grasp a future that we alone can create. A future that is global in its aspiration. In its ambition. This evening, here with you now, I call for your continued support and commitment – and in turn, I offer mine.

A commitment to respond to your needs. To listen. To learn. And to work with you – together – to build a better future, a brighter future, for you, for your business and for Bahrain.

Thank you.