US embassy cable - 04MANAMA1727

UNCLAS MANAMA 001727 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP, ETRD, BA 
SUBJECT: AMBASSADOR VISITS BAHRAIN INVESTORS CENTER 
 
1. (U) Summary:  On October 13 the Ambassador toured the 
Bahrain Investors Center (BIC), the Ministry of 
Commerce's newly launched "one-stop shop" for investors. 
The BIC is the GOB's first e-Commerce and e-Government 
initiative.  It removes much of the red tape that had 
stalled Bahrain's efforts to compete with its neighbors 
for new investment.  The BIC, along with other reform 
initiatives, is part of an effort to promote Bahrain as a 
hub for firms looking for a regional home base.  End 
Summary. 
 
2. (U) The Bahrain Investment Center (BIC) is part of the 
Ministry of Commerce's 2003-2006 plan to enhance the 
country's market competitiveness by attracting local, 
regional, and international investment to Bahrain. 
Inaugurated in October 2004, the BIC is a high-tech, 
customer-friendly and easy to find facility, located in 
one of Bahrain's largest malls, that offers assistance to 
both Bahrainis and foreigners.  It is part of a larger 
effort by the GOB to attract firms to use Bahrain as 
their "Gateway to the Gulf" by setting up regional 
operations here.  According to Commerce officials, the 
BIC is the first step on the GOB's path towards a 
comprehensive and effective e-Government system. 
 
3. (U) The BIC is designed as a "one-stop shop" providing 
all commercial licensing and registration services.  It 
houses representatives from all relevant ministries (over 
a dozen) and private sector representatives from the 
telecommunication, legal, banking, and consulting 
industries under one roof.  The U.S.-based consulting 
firm Ernst and Young has a booth and the BIC will also 
include a booth dedicated to promoting the U.S.- Bahrain 
Free Trade Agreement (FTA), which will cater the needs of 
U.S. investors. 
 
4. (U) Under the previous commercial registration system, 
registering a new company took an average of two to five 
weeks.  In fact, according to Commerce Undersecretary 
Abdulla Mansour, the red tape that plagued the previous 
system significantly delayed 99.9 percent of all 
commercial applications.  Today the BIC can process and 
issue 80 percent of commercial registration applications 
within 24 hours and 90 percent of commercial 
registrations within five working days.  The remaining 10 
percent, mostly those having to do with health, 
environment, power and or other essential services, are 
processed separately according to sector specific 
regulations.  As of November 8, 130 companies with a 
capital of $500 million were registered at BIC.  Sixty 
percent of 2004's commercial registrations were 
registered during the two-month trial period, prior to 
the Center's official opening ceremony in October. 
 
5. (U) An essential element of the BIC is its website. 
Online services currently available include details on 
company activities, shareholders and investment capital. 
The GOB plans to include an online registration and 
payment option in the future allowing companies to 
register in Bahrain without ever having to travel to 
Manama. 
MONROE