Bahrain's pioneering investment role praised

Bahrain is playing a pioneering role in attracting investment to the region, it was revealed at an international meeting yesterday.Organisation of Economic Co-operation and Development (OECD) deputy director Rainer Geiger also commended the progress made by Bahrain towards improving national investment conditions.

He was speaking at the opening of a three-day meeting of MENA (Middle East and North Africa) government representatives and the OECD, aimed at developing policies to attract investment in the region.

The meeting at the Diplomat Radisson SAS Hotel was opened by Economic Development Board (EDB) chief executive Shaikh Mohamed bin Isa Al Khalifa.

Hosted by the EDB, this is the fourth meeting this year between senior representatives from government, civil and private sector organisations of the MENA states and the OECD.

The discussions aim to agree recommendations on practical steps in developing a regional investment policy at ministerial level that will attract domestic and foreign investment into the MENA region.

The conclusions will be drafted into a Ministerial Investment Charter to be presented to a MENA-OECD Investment Ministerial Meeting in Jordan in November.

In his opening address Shaikh Mohammed said the OECD is providing valuable expertise to enable the MENA countries to improve and develop the regional investment environment.

OECD is also trying to achieve the highest level of transparency and best practice through improvements in the laws governing domestic and foreign investment, he noted.

"These meetings aim to create a constructive dialogue and exchange of ideas and opinions that will encourage governments, investment agencies and the private sector to participate in the economic reform needed in the region," said Shaikh Mohammed.

Bahrain is taking a leading role in the region by pioneering the MENA-OECD Investment Programme, said Mr Geiger.

"As the host to the MENA-OECD meetings, Bahrain is playing a key role in driving forward the progress on completing this first stocktaking phase of the programme," he added.

"The talks will focus on how to develop open and transparent investment policies through multi-stakeholder dialogue, drawing together government, civil and private sector organisations from the participating MENA and OECD countries."

The meetings will include discussion of the regulatory framework for foreign investment and options for reform in MENA countries; ways of improving the integrity of business transactions in order to reduce uncertainty and risk to domestic and foreign investors; tax and non-tax incentives for investment; assessment of FDI (foreign direct investment) data availability and identification of areas for improvements to increase conformity with international standards.

Later, speaking to newsmen, Mr Geiger and deputy permanent representative of Japan to the OECD, Shuchiro Megata said Bahrain is the first country which has presented a national reform agenda on all policy areas.

"However, the decision making in public sector in Bahrain and several other countries of the region is slow," said Mr Geiger.

"Administrative constraints hold back investment. The situation can be improved by modernising their legislative system and improving the skills of their workforce."

The OECD is a group of 30 member countries brought together by a commitment to democratic government and market economies.

The OECD-MENA Investment Programme focuses on investment and research led and driven by countries in the MENA region. It is hoped that the MENA countries will have more active engagement in shaping the programme of work and agreed actions with the OECD headquarters in Paris.