NEWLY-ELECTED BAHRAIN CHAMBER OF COMMERCE AND

UNCLAS SECTION 01 OF 02 MANAMA 001919 SIPDIS NEA/ARPI COMMERCE FOR DAS VINEYARD AND TYLER HOFFMAN E.O. 12958: N/A TAGS: ETRD ECON BA OFFICIALS ECTRD BILAT SUBJECT: NEWLY-ELECTED BAHRAIN CHAMBER OF COMMERCE AND INDUSTRY BOARD SEEKS TO PROMOTE FTA -------------- SUMMARY -------------- ¶1. In a December 28 meeting with the newly-elected Bahrain Chamber of Commerce and Industry Board of Directors, the Ambassador exchanged ideas with Board Chairman Dr. Essam Abdullah Fakhro on ways to promote trade and investment opportunities under the recently ratified U.S. - Bahrain Free Trade Agreement (FTA). He stated that a possible April 2006 visit by the Crown Prince to the U.S. could be timed perfectly to promote the FTA. A new GOB initiative to spur investment by cutting red tape complements BCCI plans to promote the FTA. End Summary. -------------- The New Board -------------- ¶2. The Ambassador called on the newly-elected BCCI Board of Directors December 28 to express his formal congratulations on their electoral success, and to exchange ideas on how to promote the FTA when it takes effect, hopefully in the coming months next year. The new 18-member board is headed by Chairman Essam Fakhro, former BCCI Second Vice-Chairman, who was elected amid some controversy on November 26. As head of the BCCI's dominant block, the Economic and Development Group, Dr. Fakhro was the consensus candidate for the top spot, which carries a four-year term. However, fellow block member Adel Al A'ali received more votes in the November 16 general election. In a November 29 press conference, Dr. Fakhro denied media reports of dissension among board members and pledged to work under the slogan "One team, one task." Other Board officers include First Vice-Chairman (former Treasurer) Ebrahim Mohammed Ali Zainal, Second Vice-Chairman Dr. Nezar Sadiq Mohammed Albaharna, Treasurer Jehad Hasan Ebrahim Bukamal, Vice-Treasurer Saqer Shaheen Saqer Shaheen, Executive Committee Member Sharif Mohammed Sharif Ahmadi and Executive Committee Member Adel Hussain Mahdi Almaskati. -------------- Expertise and Assistance Sought -------------- ¶3. Dr. Fakhro told the Ambassador that he had just been appointed Chairman of the Economic Development Board's (EDB) FTA Committee and looked forward to coordinating with various governmental offices and local NGO's, including the Bahrain Businessman's Association, Bahrain Businesswomen's Association, and the Bahrain Economic Society to develop a strategy for maximizing the benefits of the FTA. He said he was also interested in collaborating with U.S. interests such as the Embassy and the American Chamber of Commerce (AmCham). ¶4. Dr. Fakhro said he sought specialized expertise on promoting the FTA in Bahrain. He noted BCCI sponsorship of a recent Booz-Allen FTA-related workshop, which addressed opportunities in the information technology, healthcare, education, legal, architectural engineering, and textile sectors, and said he would pursue follow-up workshops that would address industrial and business services sectors. Board member Sameer Nass voiced interest in hearing from experts experienced in Jordan's FTA implementation. ¶5. The Ambassador expressed strong interest in supporting the effort to chart a way forward. The Ambassador recommended regular meetings with Embassy and AmCham interlocutors and suggested it would be appropriate to organize a high-profile, celebratory event marking the implementation of the FTA. (Note: Though the FTA has been fully ratified by U.S. and Bahraini legislatures, implementation is subject to Bahrain's passage of certain intellectual property rights-enforcing legislation. End Note.) The Ambassador said we should look for opportunities to promote the FTA in the U.S., pointing out that a possible visit by the Crown Prince to the U.S. in April could be well-timed to maximize publicity for the FTA. ¶6. Board members expressed strong interest in USG support for trade missions from the U.S. to complement those from Bahrain. The Ambassador suggested an upcoming visit by U.S. Department of Commerce Deputy Assistant Secretary Holly Vineyard would be an opportunity to appeal for such support. -------------- New GOB Initiative Complements BCCI Plans -------------- ¶7. The Ambassador applauded a December 25 announcement by Minister of Industry and Commerce Hassan Fakhro, to replace "red tape with a red carpet" for new investors. The initiative announced by Minister Fakhro is geared toward encouraging investment and its first phases are to be implemented in January 2006. Key measures include a steep reduction of commercial registration fees, and the slashing of advance approval and permit requirements. The initiative will also mean that shares of joint stock companies can be traded without prior approval. "The new regime will mean it is easier, cheaper, and faster to set up a business in Bahrain, encouraging entrepreneurs and investors from within the country and from abroad," said Minister Fakhro in explaining the initiative. The Ambassador noted that plans to educate the Bahraini business community on the new initiative could complement and be coordinated with efforts to promote FTA opportunities. MONROE