BMENA ENTREPRENEURSHIP CENTER GETTING OFF THE

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. -------------- Need to Keep up Momentum After FTA Signing -------------- ¶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. -------------- Entrepreneurship Center -------------- ¶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. -------------- Beyster Institute in Bahrain -------------- ¶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. -------------- Comment -------------- ¶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