Flip through the latest issue of Gulf Weekly.
The decision by Bahrain to introduce a one per cent tax to cover unemployment benefit is a positive shift for the economic growth of the country.
That was the view of Oxford Business Group's (OBG) regional editor Oliver Cornock.
Speaking at the launch of the fourth edition of The Report: Bahrain 2008 at the Ritz-Carlton Bahrain, Hotel and Spa, he said this was a huge step for the local economy.
"I see tax as a hallmark of a developed economy and the introduction of this tax as a transition to a Western-style established economy," he said.
"In the long term, as the economy develops and continues to diversify I see tax as inevitable here in Bahrain and elsewhere in the GCC.
"The economic growth and success of the ongoing diversification in Bahrain is hugely impressive," he said.
"Bahrain was the first country in the region to produce oil and is rightly acclaimed as the first to tackle the thorny issue of what to do when the hydrocarbons run out.
"It was this acknowledgement and the policies that have been put in place over the years that have placed Bahrain in such a positive position.
"Banking and financial services are making a major and growing contribution to GDP, and in 1968 the country became the first in the region to build an aluminium smelter. So other aspects of the economy are maturing with the hydrocarbon businesses.
"Key to future success will be continuing along the path of diversification, which is one that Bahrain's neighbours are trying to emulate.
"Bumper revenues from hydrocarbons have led to huge surpluses of liquidity across the region. This, coupled with soaring commodities and raw material prices, have all been contributory factors to growing inflationary pressure. However, Bahrain appears to be in a relatively strong position to cope with this."
The Report Bahrain 2008 is published in partnership with primary partner, the Economic Development Board (EDB), Securities and Investment Company (SICO) as capital markets partner, Ernst & Young as accountancy partner, and Qays H Zu'bi Attorneys and Legal Consultants as legal affairs partner.
