Pay attention, because this concerns you very much.
In a recent conference that I have attended, Mumtalakat, the investment arm of the government of Bahrain, announced that they will invest 150 million dollars in Bahrain this year alone. The amount will be somewhat divided and invested in three sectors, real estate, aluminium downstream, and tourism and events. I personally believe that spending money in the first two will yield great results, so there’s no issue that money there is money well spent. However, I believe there’s much explanation to do with regards to tourism and events.
As far as I know, the investment this year in tourism and events is suggested to be somewhere around 45 million dollars. This should be your focus for today, so kindly read on.
Mumtalakat made good success in real estate, such as partnering in Durrat Al Bahrain. Their future plan is to further invest in the surroundings of this project to enhance the attractiveness it already possesses. With a careful project plan, real estate will always remain successful, because it serves as an asset, and will not disappear like unreal investments in stocks, currency exchanges and so on. I could argue that they should instead invest in incomplete projects like the Financial Harbor and Marina West, but perhaps they’re looking into greater returns.
Aluminium downstream is without any doubt an excellent investment. This is called establishing ISI (Important Substitute Industrialization), whereby you replace what you import with a local industry that produces it. The idea is to then turn ISI into EOI (Export-Oriented Industrialization), where in time, and after you have successfully mastered this industry, you start competing internationally and begin exporting your locally made product. China successfully implemented this methodology. Of course this is not simple, because the government would have to ratify protectionist regulations in order to create demand for the locally made product. So it is going to be interesting to see if the regulations in Bahrain will work well with Mumtalakat’s investment in aluminium downstream.
Now to what’s interesting, millions in tourism and events. What is different from this type of investment and the two mentioned above is that this is a highly dependent investment, has much higher risk of unsuccessfulness, cannot be gauged properly in terms of success, and not clear if the money spent will stay in Bahrain.
Many small and medium businesses in Bahrain are looking to make use of this 45 million dollars that will be spent in tourism and events. If the government provides a good umbrella to this industry, the best way forward for Mumtalakat is utilize local skills and businesses instead of contracting with foreign companies in events management, marketing consultancy, and all the logistical support. The only reason I see Mumtalakat looking to invest in Bahrain and not elsewhere is because there was a political reason that influenced this economic decision.
Mumtalakat, therefore, should save small and medium Bahraini businesses and assist in their growth by honoring them and only them the 45 million dollars contracts. Under the right business environment with the vital support of the Judicial branch, this is the best way forward, because SMEs mostly target the local market. This would also ensure that all the suspected doubts of failure are tackled.
Bahrain has successfully made available soft loans, establishment support packages, and proper training tools to SMEs through Tamkeen, Bahrain’s labor fund, and now is the time to get them in action.
Too bad I’m not in Bahrain, is a great thing to have smart goverment wich provide support to people starting new businesses, that is the only real way to allow people to work, to awaken the entrepreneurial spirit in them, business competition is, once you get into it it’s like a sport, you have climb and downs, but you never give up, this is your drug, and is not about money.
Indeed Aluminum is one of the strategic advantages of Bahrain, and should be used wisely, with a new alloys that is the metal of the future and a safe investment.
Since my father was a builder as a child I loved to see a sky full of cranes, construction starts at least 50% for other industries.
Tourism is the only sector of the economy that every year despite the global crisis, continual growth is a matter of good management and proper assessment of how much it will have an impact on the domestic industry and how it can be spread evenly occupancy throughout the year.
Sorry, I’m just in love with the business as well as in sports, and I always have the desire and the need to force the people around me to do something! 🙂
I can say that the most interesting fıeld ıs the tourısm and events because Bahrain needs to improve the sector of “SERVICES”. It is a nice country and there is a lot to invest in such kind of field. I can also say that the Ministry of Culture is helping too much in such kind of investments. The most important is to have very nice ideas and also to have very nice management. Management means the pre-opening and the opening of each project and also to keep the standards as per the opening and why not improving them. For such kind of Projects Bahrain needs trained, experienced and qualified persons. People speaking at least 3 advanced level languages. AND HOSPITALITY IS THE CAPITAL TO SUCCEED IN SUCH KIND OF INVESTMENTS AND PROJECTS.
Investors also Shall look for the quality as they look for the quantity, because this is the key to keep the success for the project, which will improve not only in tourism and events field but the the economy of Bahrain in general.
ALL THE BEST FOR THE INVESTORS, THE EMPLOYERS AND THE EMPLOYEES 🙂