Identifier
Created
Classification
Origin
06MANAMA1956
2006-11-22 14:58:00
CONFIDENTIAL
Embassy Manama
Cable title:
A/S BOHIGIAN FINDS GOB, BUSINESS EAGER TO BENEFIT
how-toVZCZCXRO6621 OO RUEHDE RUEHDIR DE RUEHMK #1956/01 3261458 ZNY CCCCC ZZH O 221458Z NOV 06 FM AMEMBASSY MANAMA TO RUEHC/SECSTATE WASHDC IMMEDIATE 6045 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUEATRS/TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY RHBVAKS/COMUSNAVCENT PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 001956
SIPDIS
SIPDIS
STATE FOR NEA/ARP, EB/CBA
STATE PASS USTR FOR J BUNTIN
COMMERCE FOR 4520/ITA/MAC AND OGC/CLDP
TREASURY FOR JROSE AND KRAMANATHAN
E.O. 12958: DECL: 11/21/2016
TAGS: ETRD ECON EINV PREL BEXP BA BILAT ECTRD
SUBJECT: A/S BOHIGIAN FINDS GOB, BUSINESS EAGER TO BENEFIT
FROM FTA
REF: MANAMA 1700
Classified By: Ambassador William T. Monroe, Reasons 1.4(b) and (d).
-------
SUMMARY
-------
C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 001956
SIPDIS
SIPDIS
STATE FOR NEA/ARP, EB/CBA
STATE PASS USTR FOR J BUNTIN
COMMERCE FOR 4520/ITA/MAC AND OGC/CLDP
TREASURY FOR JROSE AND KRAMANATHAN
E.O. 12958: DECL: 11/21/2016
TAGS: ETRD ECON EINV PREL BEXP BA BILAT ECTRD
SUBJECT: A/S BOHIGIAN FINDS GOB, BUSINESS EAGER TO BENEFIT
FROM FTA
REF: MANAMA 1700
Classified By: Ambassador William T. Monroe, Reasons 1.4(b) and (d).
--------------
SUMMARY
--------------
1. (C) Commerce Assistant Secretary for Market Access and
Compliance David Bohigian November 16 called on senior GOB
officials, addressed an AmCham-sponsored FTA event, and met
with U.S. and Bahraini company executives to promote
"friction-free" bilateral trade and highlight the U.S. as a
dynamic and welcoming destination for foreign direct
investment (FDI). During the visit, the local business
community's ongoing appetite for specific guidance on
applying the benefits of the FTA was evident. Bahrain
remains slow off the mark in promoting awareness and
understanding of the FTA. We will continue to push them to
do more. End Summary.
-------------- --------------
COMMERCE MINISTER HIGHLIGHTS BILATERAL COOPERATION
-------------- --------------
2. (C) Minister of Industry and Commerce Hassan Fakhro
welcomed A/S Bohigian and delegation and praised the USG for
ongoing technical assistance to Bahrain. His recognition of
the MEPI-funded Commercial Law Development Program (CLDP) was
particularly laudatory. Fakhro expected a new Companies Law,
to which CLDP consultants had contributed heavily, to be
passed in the next parliamentary session. The Ambassador
noted that visiting CLDP staff had recently described the law
as world class.
3. (C) Fakhro added that, in consultation with the National
Institute of Standards and Technology, the GOB had drafted a
new Standards Law that would also be submitted to parliament
in the next session. Assistant Undersecretary for Standards
and Consumer Protection Abdul Razak Zainalabedin added that
the GOB was meeting with the GCC Standards Committee to shape
discussion on pending standards proposals.
4. (C) On what the U.S. could do to deepen Bahraini
investment in the U.S., Fakhro suggested that GOB officials
would welcome a U.S. "roadmap" offering advice. Fakhro also
cited a need for good FTA success stories from Jordan and
Asia that could provide examples of effective investment and
joint-venture strategies.
5. (U) Fakhro pointed to the Bahrain Investment Wharf (BIW),
which he had officially launched the previous day, as an
example of steps the GOB was taking to further its own
interest in attracting FDI. He noted that it would be
located adjacent to the new Bahrain Industrial Park and could
serve as an example of the public and private sectors working
together in constructive competition for investment. (Note:
At the November 15 opening ceremony, BIW Chairman Ahmed Al
Qattan described the FTA as a key feature in attracting FDI
to Bahrain in general and the BIW in particular. The BIW
corporate brochure devotes significant space to the FTA. End
Note.)
6. (C) A/S Bohigian asked about ongoing labor reform. Fakhro
acknowledged that Bahraini unemployment was a concern, but
added that the GOB had moved to remedy unemployment. (Note:
The Prime Minister announced November 20 that just four
percent of Bahrainis registered with the National Employment
Project remained unemployed. End Note).
--------------
EDB CHIEF EXECUTIVE SHARES VISION
--------------
7. (U) At the Economic Development Board (EDB),Shaikh
Mohammed identified the three pillars to Bahrain's economic
strategy: First, position Bahrain's private sector as an
"engine of growth for the future;" second, direct the GOB's
evolution from operator to regulator through privatization of
the post office, port and airport, and third, promote the
education and training of Bahrainis in order to achieve a
more skilled, competitive workforce. Shaikh Mohammed also
said educating the public on the relevance of trade
MANAMA 00001956 002 OF 003
principles such as the protection of intellectual property
rights (IPR) would be a priority. He asked for U.S.
assistance in developing a fresh public awareness campaign.
8. (C) Shaikh Mohammed said a comprehensive ten-phase
national land reform plan commissioned by the EDB had just
been completed for the Crown Prince's review. The plan,
produced by U.S. firm Skidmore, Owings and Merrill, provides
a framework for the strategic development of Bahrain's land
resources. The lack of a transparent land acquisition regime
has been a perennial complaint among Bahrain's business
community. In addition to commercial land development, the
plan also addresses Bahrain's housing needs.
9. (C) Shaikh Mohammed also mentioned that the EDB is
planning trade missions to raise Bahrain's profile with U.S.
investors. The next trade mission could occur sometime
during the first quarter of 2007, perhaps at the end of
February or beginning of March. He said he was particularly
interested in attracting more manufacturing to Bahrain. The
Ambassador noted the recently announced investment of a U.S.
automotive parts manufacturer as a step toward that goal.
(Note: Tactics Middle East (TME) announced plans to build a
$60 million car parts factory in Bahrain. The local press
quotes a TME official as citing the FTA as a draw for
investment in Bahrain. End Note.)
--------------
AMCHAM EVENT POINTS TO NEED FOR GUIDANCE
--------------
10. (C) In an AmCham-sponsored FTA promotional breakfast, A/S
Bohigian said the U.S. welcomes Bahraini investment and noted
that the majority of U.S.-international trade takes place
with our FTA partners. He called on the business community
to pursue the full benefits of the FTA in the interest of
furthering "friction-free" trade in Bahrain and the region.
A/S Bohigian responded to questions from the audience
following his remarks. As was the case during Commerce
Deputy Assistant Secretary Holly Vineyard's visit, several
questions illustrated an ongoing desire among many in the
local business community for specific guidance on benefiting
from the FTA (reftel).
--------------
PRIVATE SECTOR SEES PROMISE
--------------
11. (C) In a meeting with Microsoft, Country Manager Sherif
Bayoumi and Services Manager Ghassan Mteirek noted that their
positive relations with the GOB were strengthened by
Microsoft's community initiatives. Through its "Partners in
Learning" program, for example, Microsoft has provided IT
training to eight thousand Bahraini teachers - 80 percent of
the teaching population. Mteirek acknowledged receiving
strong support from the GOB on software IPR protection. It
remains a problem, but Mteirek noted that independent
industry statistics place Bahrain's software piracy rates
among the lowest in the region.
12. (C) A/S Bohigian's meeting with Microsoft took place
during the company's first day in its new offices. Pointing
to still unpacked boxes, his hosts explained that their new,
larger office space was needed to accommodate the relocation
of its MENA region headquarters from Turkey to Bahrain.
Bayoumi said Microsoft had selected Bahrain for its favorable
investment climate and regionally competitive cost of living.
13. (C) A/S Bohigian told senior investment bankers
representing Citigroup, Arcapita, Investcorp and Kuwait
Finance House Bahrain (KFH-Bahrain) that the $12 trillion
U.S. economy represented a dynamic and welcoming destination
for ongoing FDI. The bankers reported gnerally strong
interest on the part of their comanies in pursuing bilateral
investment opportunites. Arcapita, Investcorp and
KFH-Bahrain eachhold a number of U.S. investments and are
open t considering more. KFH-Bahrain Project Developmen
Manager Osama Al Khajah said Second Deputy Chairman Waleed
Rashdan had traveled to Colorado October 22 at the invitation
of Bahraini Ambassador Nasser Belooshi to study renewable
energy-related joint venture opportunities.
--------------
MANAMA 00001956 003 OF 003
COMMENT
--------------
14. (C) A/S Bohigian's visit to Bahrain showcased positive
U.S.-Bahraini relations. Meetings highlighted the eagerness
of GOB officials to enhance the Bahraini investment climate
and support the success of the FTA. However, the need to
respond to widespread Bahraini uncertainty over how to
capitalize on the benefits of the FTA persists. A range of
U.S. officials, including A/S Bohigian and the Ambassador
have explained that, while the FTA opens doors, it is up to
the private sector to walk through them. While some local
initiatives, including the AmCham, the MEPI-funded
Entreprenuership Center, and the Embassy's own outreach
efforts, are promoting awareness and understanding of the
FTA, the Bahraini side has been slow off the mark. The plan
to send a trade and investment mission to the U.S. in early
2007 is an encouraging sign. We will continue to push the
Bahrainis to do more. End comment.
********************************************* ********
Visit Embassy Manama's Classified Website:
http://www.state.sgov.gov/p/nea/manama/
********************************************* ********
MONROE
SIPDIS
SIPDIS
STATE FOR NEA/ARP, EB/CBA
STATE PASS USTR FOR J BUNTIN
COMMERCE FOR 4520/ITA/MAC AND OGC/CLDP
TREASURY FOR JROSE AND KRAMANATHAN
E.O. 12958: DECL: 11/21/2016
TAGS: ETRD ECON EINV PREL BEXP BA BILAT ECTRD
SUBJECT: A/S BOHIGIAN FINDS GOB, BUSINESS EAGER TO BENEFIT
FROM FTA
REF: MANAMA 1700
Classified By: Ambassador William T. Monroe, Reasons 1.4(b) and (d).
--------------
SUMMARY
--------------
1. (C) Commerce Assistant Secretary for Market Access and
Compliance David Bohigian November 16 called on senior GOB
officials, addressed an AmCham-sponsored FTA event, and met
with U.S. and Bahraini company executives to promote
"friction-free" bilateral trade and highlight the U.S. as a
dynamic and welcoming destination for foreign direct
investment (FDI). During the visit, the local business
community's ongoing appetite for specific guidance on
applying the benefits of the FTA was evident. Bahrain
remains slow off the mark in promoting awareness and
understanding of the FTA. We will continue to push them to
do more. End Summary.
-------------- --------------
COMMERCE MINISTER HIGHLIGHTS BILATERAL COOPERATION
-------------- --------------
2. (C) Minister of Industry and Commerce Hassan Fakhro
welcomed A/S Bohigian and delegation and praised the USG for
ongoing technical assistance to Bahrain. His recognition of
the MEPI-funded Commercial Law Development Program (CLDP) was
particularly laudatory. Fakhro expected a new Companies Law,
to which CLDP consultants had contributed heavily, to be
passed in the next parliamentary session. The Ambassador
noted that visiting CLDP staff had recently described the law
as world class.
3. (C) Fakhro added that, in consultation with the National
Institute of Standards and Technology, the GOB had drafted a
new Standards Law that would also be submitted to parliament
in the next session. Assistant Undersecretary for Standards
and Consumer Protection Abdul Razak Zainalabedin added that
the GOB was meeting with the GCC Standards Committee to shape
discussion on pending standards proposals.
4. (C) On what the U.S. could do to deepen Bahraini
investment in the U.S., Fakhro suggested that GOB officials
would welcome a U.S. "roadmap" offering advice. Fakhro also
cited a need for good FTA success stories from Jordan and
Asia that could provide examples of effective investment and
joint-venture strategies.
5. (U) Fakhro pointed to the Bahrain Investment Wharf (BIW),
which he had officially launched the previous day, as an
example of steps the GOB was taking to further its own
interest in attracting FDI. He noted that it would be
located adjacent to the new Bahrain Industrial Park and could
serve as an example of the public and private sectors working
together in constructive competition for investment. (Note:
At the November 15 opening ceremony, BIW Chairman Ahmed Al
Qattan described the FTA as a key feature in attracting FDI
to Bahrain in general and the BIW in particular. The BIW
corporate brochure devotes significant space to the FTA. End
Note.)
6. (C) A/S Bohigian asked about ongoing labor reform. Fakhro
acknowledged that Bahraini unemployment was a concern, but
added that the GOB had moved to remedy unemployment. (Note:
The Prime Minister announced November 20 that just four
percent of Bahrainis registered with the National Employment
Project remained unemployed. End Note).
--------------
EDB CHIEF EXECUTIVE SHARES VISION
--------------
7. (U) At the Economic Development Board (EDB),Shaikh
Mohammed identified the three pillars to Bahrain's economic
strategy: First, position Bahrain's private sector as an
"engine of growth for the future;" second, direct the GOB's
evolution from operator to regulator through privatization of
the post office, port and airport, and third, promote the
education and training of Bahrainis in order to achieve a
more skilled, competitive workforce. Shaikh Mohammed also
said educating the public on the relevance of trade
MANAMA 00001956 002 OF 003
principles such as the protection of intellectual property
rights (IPR) would be a priority. He asked for U.S.
assistance in developing a fresh public awareness campaign.
8. (C) Shaikh Mohammed said a comprehensive ten-phase
national land reform plan commissioned by the EDB had just
been completed for the Crown Prince's review. The plan,
produced by U.S. firm Skidmore, Owings and Merrill, provides
a framework for the strategic development of Bahrain's land
resources. The lack of a transparent land acquisition regime
has been a perennial complaint among Bahrain's business
community. In addition to commercial land development, the
plan also addresses Bahrain's housing needs.
9. (C) Shaikh Mohammed also mentioned that the EDB is
planning trade missions to raise Bahrain's profile with U.S.
investors. The next trade mission could occur sometime
during the first quarter of 2007, perhaps at the end of
February or beginning of March. He said he was particularly
interested in attracting more manufacturing to Bahrain. The
Ambassador noted the recently announced investment of a U.S.
automotive parts manufacturer as a step toward that goal.
(Note: Tactics Middle East (TME) announced plans to build a
$60 million car parts factory in Bahrain. The local press
quotes a TME official as citing the FTA as a draw for
investment in Bahrain. End Note.)
--------------
AMCHAM EVENT POINTS TO NEED FOR GUIDANCE
--------------
10. (C) In an AmCham-sponsored FTA promotional breakfast, A/S
Bohigian said the U.S. welcomes Bahraini investment and noted
that the majority of U.S.-international trade takes place
with our FTA partners. He called on the business community
to pursue the full benefits of the FTA in the interest of
furthering "friction-free" trade in Bahrain and the region.
A/S Bohigian responded to questions from the audience
following his remarks. As was the case during Commerce
Deputy Assistant Secretary Holly Vineyard's visit, several
questions illustrated an ongoing desire among many in the
local business community for specific guidance on benefiting
from the FTA (reftel).
--------------
PRIVATE SECTOR SEES PROMISE
--------------
11. (C) In a meeting with Microsoft, Country Manager Sherif
Bayoumi and Services Manager Ghassan Mteirek noted that their
positive relations with the GOB were strengthened by
Microsoft's community initiatives. Through its "Partners in
Learning" program, for example, Microsoft has provided IT
training to eight thousand Bahraini teachers - 80 percent of
the teaching population. Mteirek acknowledged receiving
strong support from the GOB on software IPR protection. It
remains a problem, but Mteirek noted that independent
industry statistics place Bahrain's software piracy rates
among the lowest in the region.
12. (C) A/S Bohigian's meeting with Microsoft took place
during the company's first day in its new offices. Pointing
to still unpacked boxes, his hosts explained that their new,
larger office space was needed to accommodate the relocation
of its MENA region headquarters from Turkey to Bahrain.
Bayoumi said Microsoft had selected Bahrain for its favorable
investment climate and regionally competitive cost of living.
13. (C) A/S Bohigian told senior investment bankers
representing Citigroup, Arcapita, Investcorp and Kuwait
Finance House Bahrain (KFH-Bahrain) that the $12 trillion
U.S. economy represented a dynamic and welcoming destination
for ongoing FDI. The bankers reported gnerally strong
interest on the part of their comanies in pursuing bilateral
investment opportunites. Arcapita, Investcorp and
KFH-Bahrain eachhold a number of U.S. investments and are
open t considering more. KFH-Bahrain Project Developmen
Manager Osama Al Khajah said Second Deputy Chairman Waleed
Rashdan had traveled to Colorado October 22 at the invitation
of Bahraini Ambassador Nasser Belooshi to study renewable
energy-related joint venture opportunities.
--------------
MANAMA 00001956 003 OF 003
COMMENT
--------------
14. (C) A/S Bohigian's visit to Bahrain showcased positive
U.S.-Bahraini relations. Meetings highlighted the eagerness
of GOB officials to enhance the Bahraini investment climate
and support the success of the FTA. However, the need to
respond to widespread Bahraini uncertainty over how to
capitalize on the benefits of the FTA persists. A range of
U.S. officials, including A/S Bohigian and the Ambassador
have explained that, while the FTA opens doors, it is up to
the private sector to walk through them. While some local
initiatives, including the AmCham, the MEPI-funded
Entreprenuership Center, and the Embassy's own outreach
efforts, are promoting awareness and understanding of the
FTA, the Bahraini side has been slow off the mark. The plan
to send a trade and investment mission to the U.S. in early
2007 is an encouraging sign. We will continue to push the
Bahrainis to do more. End comment.
********************************************* ********
Visit Embassy Manama's Classified Website:
http://www.state.sgov.gov/p/nea/manama/
********************************************* ********
MONROE