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Bahrain a pioneering model in the Gulf region

H.H. Shaikh Hamad Bin Isa Al Khalifa, The Amir of the State of Bahrain

Bahrain at the start of the 21st century is a nation with a rapidly evolving sense of its place in the international community. In what will surely be remembered for years to come as a major leap forward in the political and democratic evolution of the nation, in February of this year the National Action Charter was voted into law. The Charter was championed from the beginning by H.H. Shaikh Hamad Bin Isa Al Khalifa, the Amir of the State of Bahrain, and will ultimately change the country from an Emirate into a Constitutional Monarchy.

The Charter, overwhelmingly endorsed on a 90 percent turnout by 98.4 percent of the population, signals a significant evolution in the political environment of Bahrain. Among the major provisions of the Charter are a Parliament, with a lower house, freely elected by the voting population, and an upper house, appointed by the Amir. The Parliament will be in place within the next three years. In addition, all political prisoners have been released in the last six months, the State Security Law and associated State Security Courts have been abolished, and several prominent political exiles have returned home to a warm welcome.

Also this year, the International Court of Justice (ICJ) settled the dispute with Qatar over the Hewar Islands in March. The ICJ delineation of the border and territorial waters, giving Bahrain sovereignty over the bulk of the Hewar chain, has allowed Bahrain and Qatar to put the past behind them and look to the future. While this was naturally welcome news for Bahrain and its people, almost more importantly for the region as a whole, the ruling brought good wishes for Bahrain's future by the Qatari government to its neighbor. Additionally, an aggressive timetable is being set up by both governments to work on establishing a network of commercial ties between the two countries. A causeway, which is being billed in advance as the longest in the world, is already in the planning stage, and will link Bahrain and Qatar by road for the first time. It is a major undertaking, and is a perfect example of the spirit of brotherhood and mutual friendship that is being expressed by the governments and people of both nations.

In the area of banking and finance, Bahrain is continuing to build upon its strengths. Bahrain has been known as the banking and financial center of the Middle East ever since the devastating Lebanese civil war made Beirut untenable as a commercial center. Under the far-sighted leadership and tight regulation of the Bahrain Monetary Agency, the nation's banking and financial stature has only risen since that time. As a consequence, many offshore banks continue to choose Bahrain as their regional base of operations. In the field of Islamic banking and finance, Bahrain is once again world-renowned. This estimated $125 billion business is growing at a rate of 15 to 16 percent per year. Bahrain is expected to continue to garner a large percentage of this significant growth sector.

Bahraini industry is experiencing an unprecedented wave of expansion and upgrade plans. Aluminium Bahrain (ALBA), the number one industrial entity in Bahrain, is considering a plant expansion which would give it the stature of having the largest capacity aluminum smelter in the world. Bahrain Petroleum Corporation (BAPCO), the national oil company, is beginning work on an $800 million plus upgrade plan for its petroleum refining facilities, to ensure that it remains competitive in the world market for years to come.

Finally, Mina Salman, the main port facility in Bahrain, is beginning work on a new port facility and industrial area in the Hidd industrial zone, just across the bay from its current location. With this facility, Bahrain will be able to handle larger vessels and will service them with a state-of-the-art port infrastructure. The industrial area will provide corporations, both foreign and domestic, with a wide range of services that will enable them to compete successfully and aggressively in this era of economic liberalization that is sweeping the region and the world.
Additionally, the tourism sector is going through a major evolution, with two major projects, Durrat al-Bahrain and Amwaj Islands, now under construction, both of which have the potential to redefine the nature of what it means to enjoy leisure time in Bahrain. Through this strategy, the country plans to capitalize upon its existing strengths as a center for outdoor recreation and ecotourism, as well as that of a major link to the region's distant past, with its abundance of historical sites dating back as long as 5,000 years.

In sum, on many and varied fronts, the State of Bahrain is at an extremely exciting time in its history, and is indeed poised to achieve great things in the coming years.