Bahrain Hopes To Draw Asean Firms To Grow Digital Economy as It Opens EDB Office in Singapore
The Bahrain Economic Development Board (EDB) is opening an office in Singapore, marking the Gulf nation’s first foothold in Southeast Asia and broader ambitions in the region under its Economic Vision 2030 plan.
Five priority sectors have been identified for collaboration as the kingdom focuses on diversifying its economy from one built on oil wealth to a globally competitive one—a shift that began more than two decades ago.
The five sectors are financial services, information and communication technologies, manufacturing, logistics, and tourism.
“Our priority is to attract these investments into Bahrain to further grow and diversify the economy and create more job opportunities,” said Ms. Dalal Buhejji, executive director of business development for financial services at Bahrain EDB.
“We believe that having a physical presence in Singapore will give us access to the Singapore market and the Asean markets,” she told The Straits Times on Monday ahead of her visit to Singapore on Tuesday.
Bahrain EDB, led by its chief executive Khalid Humaidan, together with Ms. Buhejji and senior officials from the Central Bank of Bahrain and Bahrain Fintech Bay, will be attending the Singapore Fintech Festival 2023 from Wednesday to Friday.
Ms. Buhejji said that Singapore and Bahrain share many similarities, both being agile nations with flexible regulatory environments that are progressive to foster digital innovation across sectors and in the financial services market in particular.
The Singapore office will help Bahrain attract more digitally enabled technologies, she said, with Asean’s digital economy poised to exceed US$200 billion (S$272 billion) by 2025.
“That’s a major opportunity for us, especially as we grow our digital economy in Bahrain across all sectors,” Ms. Buhejji said.
Bahrain’s push to develop a crypto hub that protects investors has proven attractive to companies specialising in blockchain-based technology and services. It boasts more than 120 fintech companies, mostly in the payments and crypto sectors.
Singapore’s Whampoa Group, an investment firm with stakes in global tech firms, announced that it would set up the headquarters of its new digital bank in Bahrain.
It plans to launch Singapore Gulf Bank, whose services include payments and settlement for crypto companies, in December, and is awaiting the final approval to get its licence from the Central Bank of Bahrain.
Whampoa is co-founded by Mr Lee Han Shih, a member of the business family that co-founded OCBC Bank and Lee Rubber Group, and Ms Amy Lee, a former senior partner at the Lee & Lee law firm started by her father Lee Kim Yew and his older brother Lee Kuan Yew – Singapore’s first prime minister – and his wife.
Just as Singapore will be Bahrain’s gateway to South-east Asia, Bahrain aims to be the bridge connecting Asean to the US$4.3 trillion Middle East and North Africa (Mena) region.
Like Asean, Mena and the six Gulf Cooperation Council (GCC) members of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates are going through exciting transformation and growth, she said. “Many global companies and investors have identified Bahrain as a place to set up their regional headquarters to grow and access the region.”
She cited examples including American Express and BNP Paribas, which have their regional headquarters in Bahrain, as well as Citi and PwC, which have chosen to set up their technology hubs and service centres there to serve global clients.
