BEntrepreneur sat down with Simon Galpin, Managing Director of the Bahrain Economic Development Board to talk about the recently held Bahrain Roadshow to China: its potential for success and how entrepreneurs can benefit from bilateral relations between the countries.

Middle East hub: What is the potential of Bahrain to be the Middle East hub of China and how would this positively affect both nations?

As an unrestricted, digitally-focused economy, Bahrain is an obvious partner for China. Indeed, next April marks the thirtieth anniversary of the bilateral relationship between Bahrain and China, and it is undeniable that over the past thirty years, our relationship has gone from strength to strength. As our relationship continues to grow, we are finding that there are more and more positives to consolidating the China-Bahrain partnership.
In fact, Bahrain is already fulfilling its potential to become the Middle East hub of China, and this is already benefiting both countries. This is reflected by the fact that several leading Chinese companies, including Huawei, which moved its regional HQ to Bahrain, and Bank of China and CIMC, have already established a presence in Bahrain, taking advantage of our low operating costs and highly-skilled workforce. China is one of the largest non-GCC markets for Bahraini exports and is playing a considerable role in many of the major construction and infrastructure projects in Bahrain.

According to the IDC, the Middle Eastern ICT market is set to hit $20 billion by 2020, and China recognises the immense opportunities that may accompany a connection to the burgeoning Middle Eastern technology market. Bahrain is well-poised to facilitate this connection through our growing network of entrepreneurs, flourishing start-up ecosystem, and progressive business environment. With innovative initiatives like the region’s first Regulatory Sandbox for FinTech start-ups to test and scale innovative new services, we are already attracting the attention of global investors, accelerators and incubators, and China is no different.

Digital transformation: Bilateral relations with China have a strong focus on digital transformation, technology and emerging technologies. Why is this important in today’s economy?

Digitalisation is causing transformation at a global scale. Countries across the world are being challenged by a wave of rapid technological advancement that is disrupting those corporations in traditional industries that cannot keep pace with this change. Indeed, we have already seen businesses and entire industries altered in just a few years by speedily evolving digital technology. In light of this, every country must focus on digital transformation and emerging technologies to survive in today’s economy.
Like China, Bahrain is a country that is defined by our commitment to large-scale digital transformation. Soon to be home to the first Amazon Web Services data centre in the MENA region, Bahrain’s digital focus is propelled by its Cloud First Policy, which has facilitated the introduction of a ‘Cloud Computing Services’ financing support that covers 100% of the cost for any Bahrain-registered business subscribing to AWS for the first 18 months.
Given the evolving global digital landscape, it is more important than ever to harness the power of digital and utilise emerging technologies to propel the development of traditional industries, shape global e-commerce and ultimately thrive in a competitive global marketplace.

Gateway to the Gulf: Why is Bahrain an ideal location to reach the Middle Eastern and European markets?

With robust and efficient pan-GCC transport links, Bahrain is the recognisable gateway to the Gulf, offering incomparable market access, including direct access to Saudi Arabia, the region’s largest market. Additionally, a recent HSBC Expat Explorer survey ranked Bahrain as the top destination for expats in the Middle East, a key factor for investors considering investment in Bahrain, many of whom have strong links to European markets.
The fact that last year’s investment amounting to BHD 276 million came from Foreign Direct Investment, with 71 new companies establishing themselves in the Kingdom, emphasises the increasing recognition of Bahrain as an ideal location to reach both the Middle East and European markets.

What’s next? What’s next for Bahrain and China?

Looking to the future, the partnership between Bahrain and China looks set to continue to grow. We are committed to contributing to China’s ‘digital silk road’ initiative, and so one of the industries we are looking to collaborate closely on in the future is ICT, where the potential for disruption is arguably greatest. China is one of the global leaders in enterprise technology, data security and electronics, and Bahrain prides itself in having one of the most liberal and competitive ICT sectors in the region. Collaborations moving forward will strengthen the ICT position of both countries. We recently returned from an investment roadshow around China, where we signed fifteen MOUs, including a few in the technology capital of China, Shenzhen, to further enhance our future cooperation.

For more information:

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