Bahrain diversifies economy in non-oil areas

Bahrain, an archipelago of 33 islands in the Arabian Gulf, offers a blend of ancient and modern. Skyscrapers share the landscape with majestic mosques, embodiments of Islamic art, culture and architecture. The country's economy is well equipped and competitive in several respects, including low taxation, openness to global trade, and financial market development. The government has focused on diversifying the economy in non-oil areas, and the country is the least oil-dependent of all Gulf Cooperation Council (GCC) states. Levels of business freedom, fiscal freedom, monetary freedom, and especially financial freedom are high. The absence of income or corporate taxes in all industries except oil gives Bahrain a competitive commercial advantage globally. With its rapidly growing young population, Bahrain has gradually moved toward more flexible employment regulations to establish a more dynamic labour market. 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. The Central Bank of Bahrain (CBB) and Economic Development Board (EDB) have the overall responsibility for formulating and overseeing the economic strategy of the Kingdom and creating the right climate to attract for eigninvestment . An umber of domestic measures have been taken to strengthen long term sustainability and prosperity, including a prudent fiscal and monetary approach, long term strategy of economic diversification and a tried and tested regulatory framework. Shaikh Mohammed bin Essa Al Khalifa, chief executive of Bahrain's Economic Development Board (EDB), explained, "The CBB is our sole regulatory body for finance. So banks and investment houses and everyone else have the clarity that comes from dealing with one authority. Moreover, the CBB takes care to consult widely among the financial institutions that will be affected by changes in regulation; they have their say and we expect them to observe the rules meticulously. This approach has served us well in recent times. People once told us we were too conservative; nobody tells us that now." Qatar-Bahrain causeway work Construction of a 40km causeway that would connect Qatar to Bahrain will start in the first quarter of 2010. The construction was initially scheduled to start in 2009, but the addition of rail lines delayed the project. The projected is expected to be completed in 2015. The latest official cost estimate of the causeway, one of the longest in the world, stands at $3 billion to be shared between Bahrain and Qatar. Users of the bridge will have to pay a toll.(finished)Footwear