Industry minister opens symposium

Manama, May 31(BNA): Small and medium enterprises (SMEs) are playing a crucial role in spurring growth alongside other key sectors in Bahrain. "Fast-growing SMEs represent the third largest contributor to the national economy, after the sectors of oil and gas and financial services", said Industry and Commerce Minister Zayed bin Rashid Al-Zayani. Addressing the opening ceremony of the Bahrain Export Trade Expansion, he stressed the Kingdom’s policy of diversification, which focuses in value added industries, citing particularly aluminum, petrochemicals and metallic products. He underlined Bahrain modern logistics infrastructure, citing in particular the Bahrain International Investment Park (BIIP) which won international recognition.The ministry is holding the Bahrain Export Trade Expansion symposium in cooperation with the United Nations Development Programme (UNDP) The minister said that the "forum deliberations are based on the recommendations of the UNDP studies on the performance of Bahrain's trade policy options and its active engagement in preferential trade agreements at bilateral and regional levels, as well as at the WTO Multilateral Most Favored Trading System". "Such studies reflect Bahrain’s long history of economic openness and trade liberalization that has led to a high degree of integration of our economy with the global economy. The benchmarking of Bahrain’s standing in a number of international indicators underscores substantial competitive strengths in areas such as human development, macroeconomic stability, financial services, efficient business regulations, openness to trade, and ICT readiness". "Our more recent trade policy options confirm our sustained drive towards freer trade and economic integration. Besides our GCC and WTO membership in 1981 and 1995 respectively, we also achieved duty free access to the Greater Arab Free Trade Area in 2005, and concluded the Free Trade Agreement with the United States in 2006. Since the launching of our Economic Vision in 2008, we have also enhanced our bilateral trade and economic relations with the UK, Italy, and most of the emerging Asian economies". "Such endeavors have yielded positive rewards to Bahrain’s international trade and national economy. Our current annual foreign trade transactions ratio to GDP is one of the highest worldwide. Moreover, while the UNCTAD/WTO 2014 estimates put the world trade value growth at 250% between 2000 and 2014, Bahrain’s total trade has increased by 520% for the same period". "Bahrain can today take pride in not only boosting a diversified industrial portfolio breakdown, and a growing SMEs sector, but also a mounting national labor force which is primarily employed in the private sector". The manufacturing and SME sectors continue to grow and constitute the third largest contributor to Bahrain's economy after hydrocarbons and financial services. As part of its diversification process, Bahrain has focused on high-value-added and energy-intensive industries such as aluminum, petrochemicals, metal products, steel and other knowledge intensive industries". "These factors have helped the kingdom develop into the one of the region's most-diversified economies, with the manufacturing and services sectors accounting for more than three quarters of the economy and expected to lead national economic growth". "Furthermore, the Bahrain International Investment Park (BIIP), and the adjacent modern logistics infrastructure have been highly ranked internationally. Bahrain’s connectivity through traditional as well as social media and e-marketing networks is supported by efficient transportation and telecommunication services and augmented by e-Government and e-Commerce initiatives". "Bahrain has continued to expand its services sector, which represented around 58% of GDP in 2012 (don’t we have more updated numbers). The financial sector, the cornerstone of Bahrain's diversification strategy, is well regulated by the Central Bank of Bahrain (CBB). In recent years, Bahrain has been focusing on developing its Islamic banking and its insurance subsectors in an attempt to create a niche in a highly competitive market in the Gulf region." "To expand the Bahrain export trade in the non oil sector, the Ministry of Industry and Commerce in partnership with Economic Development Board, Tamkeen & Bahrain Development Bank is embarking on a major initiative to set up an Export Development Centre with the main objective of providing advisory services and financial assistance to boost exports from small and medium enterprises. On thGCCe longer term plans to reinforce infrastructure are well on the way with the announcement of King Hamad Causeway which will not only serve as our second connection to KSA but also as our first Rail Road linkage to the GCC". "It goes without saying that the effectiveness of a national trade promotion strategy will depend on the country’s trade promotion infrastructure. Both the public and private sectors have to work together in developing this infrastructure. The proposed Export Development Centre will be an important link in our trade promotion infrastructure and will assist the private sector in assessing its export readiness and in building the capacity to engage in and sustain export activities." "I would like to emphasise a focused approach in expanding our exports; both the private and public sectors need to work together to identify the best market- product matrix and then select the target markets to concentrate on market promotion and developmental efforts. Expanding exports is a strategic necessity for the government and part of essential business strategy for the Bahraini private sector. We will be in a precarious position if the bulk of our exports are dependent on a single or handful of markets. Hence, there is a national need for proactive market diversification and market deepening in both traditional and non-traditional markets".