US embassy cable - 04MANAMA1603

UNCLAS SECTION 01 OF 02 MANAMA 001603 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR NEA/ARPI AND NEA/PI SONIA FRANCESKI 
DEPARTMENT PASS TO USTR JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, PREL, BA 
SUBJECT: BMENA ENTREPRENEURSHIP CENTER GETTING OFF THE 
GROUND IN BAHRAIN 
 
1. (U) Sensitive But Unclassified (Deliberative Process); not 
for Internet distribution. 
 
2.  (SBU) On October 12 the Ambassador met with Minister of 
Finance and National Economy Abdulla Bin Hassan Saif to 
discuss implementation of the Free Trade Agreement (FTA) and 
Bahrain's decision to host a Center for Entrepreneurial 
Excellence sponsored by the G8 through the Broader Middle 
East and North Africa (BMENA) Initiative.  A MEPI-funded team 
from the Beyster Institute of the University of California at 
San Diego with experience in this type of center attended the 
second half of the meeting. 
 
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Need to Keep up Momentum After FTA Signing 
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3.  (SBU) On the FTA, the Minister said it was very important 
that Bahrain not lose the momentum gained from the signing of 
the FTA and move quickly to ratification.  Bahrain fully 
understands the difficulties with the election year 
Congressional calendar and other bills that must be passed, 
but it is important that the GOB be able to show something 
positive soon.  Ambassador agreed and said he had discussed 
this already with the Crown Prince and would be following up 
again with him.  The Minister said that he too would follow 
up with the Crown Prince. 
 
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Entrepreneurship Center 
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4.  (SBU) Minister Saif reaffirmed Bahrain's commitment to 
the entrepreneurship center and indicated Bahrain's belief 
that as a G-8 initiative the center would be more successful 
if it was established as a new entity.  He agreed that it was 
fine to start the center as part of the Bahrain Monetary 
Agency (BMA)-run Bahrain Institute for Banking and Finance 
(BIBF) in order to get the center up and running quickly, but 
urged that it evolve into a distinct entity, separate from 
the BIBF. 
 
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Beyster Institute in Bahrain 
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5.  (SBU) Dr. Ray Smilor and Mohammed Bedrouni of the Beyster 
Institute, accompanied by MEPI officer Joel Rubin, traveled 
to Bahrain October 11 and 12 to meet with the GOB to discuss 
the implementation of the BMENA Center for Entrepreneurial 
Excellence in Bahrain.  The Beyster Group met with Minister 
Saif and his staff, Sheikh Ahmed Bin Mohammed Al Khalifa, 
Governor of the Bahrain Monetary Agency (BMA) and his staff, 
Khalid Mohamed Kanoo, Chairman of the Bahrain Chamber of 
Commerce and Industry (BCCI), Afnan Rashid Al Zayani of the 
Bahrain Business Women's Society, and members of the faculty 
at the BIBF, who also conducted a tour of the BIBF 
facilities.  At each meeting Dr. Smilor presented a draft 
plan for the activities of the center in its inaugural year 
and biographic data for two potential U.S. directors.  In a 
separate meeting with Yousif Humood, Ministry of Finance and 
National Economy (MOFNE) Director of Economic Planning, 
Smilor agreed to return to Bahrain in early January 2005 and 
to provide MOFNE with a precise description of the kind of 
facilities the center would need. 
 
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Comment 
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6.  (SBU) The Embassy is now working with the GOB on ways 
Bahrainis can benefit from the FTA. Staff at MOFNE are 
particularly concerned that the sector analysis now being 
conducted by Booz Allen be completed before they present the 
FTA to the Parliament (Arabic translation of the FTA is still 
underway).  We understand representatives from Booz Allen 
intend to travel to Bahrain during the last week of October. 
The Embassy supports this trip and will work with MOFNE staff 
to ensure its success. 
 
7.  (SBU) The Beyster visit, and particularly the meeting 
with Saif, proved crucial to turning the idea of an 
entrepreneurship center into a reality.  We now have a clear 
understanding of the Bahraini vision for the center and MOFNE 
appears eager to move forward.  Throughout the trip Beyster 
received the same message:  Bahrain needs this kind of center 
and its presence in Bahrain will help cement the country's 
reputation for exporting know-how in the Gulf. 
MONROE