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Business-friendly Bahrain has come under the spotlight as Forbes has ranked it as the best country for business in the Gulf.
According to the US-based publication's fourth annual list, which ranked Denmark on top globally, Bahrain is ranked No 1 in the GCC and 33rd of 127 economies in Forbes' Best Centres for Business 2009 report.
Despite the doom and gloom following the collapse of the financial markets around the world, Bahrain remains upbeat about its financial standing in the GCC.
Although the kingdom's economy is expected to slow down after years of a fiscal euphoria caused by strong crude oil prices reaching almost $150 per barrel, experts suggest that the kingdom will be able to weather the current storm reasonably well.
In an exclusive interview with GulfWeekly, Trevor Stokes, the newly-appointed executive director of the Economic Development Board of Bahrain (EDB), said: "Bahrain is not immune from the global economic crisis but has been less affected than many other economies.
"We are committed towards growing and diversifying Bahrain's economy and are currently working to attract companies in high value-added sectors such as ICT, business services, high tech manufacturing, pharmaceuticals, aerospace, tourism and training and education. These efforts are part of the road map set out in the Vision 2030 and National Economic Strategy."
According to a report issued by Global Investment House, a Kuwait-based investment bank, the GDP of Bahrain, which is far less reliant on crude exports than its neighbours, could slacken to around three per cent in 2009 and growth could decline further if oil prices remain weak.
The report said Bahrain had recorded exceptionally high growth during the past few years, with the nominal GDP galloping by double digits since 2003.
Higher oil prices and huge liquidity in the region also helped Bahrain to record robust performance.
The slowdown, however, has been acknowledged by several financial leaders and Bahraini Central Bank Governor Rasheed Mohammed Al-Maraj said at a recent luncheon: "I think we will grow but at a modest rate, at a lower rate."
Regardless of the predicted slowdown which is omnipresent worldwide, Forbes' report highlights a number of factors that have already attracted numerous multi-national firms to Bahrain seeking access to the Gulf and MENA region including a 'well established financial services sector and leading position in Islamic finance'.
At the recent 4th World CEO Forum in Dubai, while speaking to over 250 CEOs and business leaders from around the world, Mr Stokes reiterated Bahrain's business friendly culture. He explained to Gulf Weekly, "Business Friendly encompasses a number of reasons why Bahrain is a good place for companies wishing to set up and invest in the Middle East.
"What we mean by 'Business Friendly' is that Bahrain is a welcoming place for investors because it offers several unique advantages and benefits.
"Amongst them are zero corporate and personal taxation, a very convenient location with strong transportation infrastructure and close proximity to regional markets, a very low-cost centre for business-to-business and foreign investors can own 100 per cent of their businesses. Moreover, Bahrain has a proven and skilled workforce, well regulated but liberal economy, a transparent and safe regulation business environment and a very high standard of living.
"When you add all these together, it is a convincing and winning story that Bahrain truly is 'Business Friendly'."
Prudent economic development and the diversification strategies of the government, financial regulation and the island's strategic geographical location in the region are some of the hallmarks that reaffirm that the Bahraini government is not whistling in the dark regarding its position as a leading destination for investors looking to establish regional headquarters across the Middle East.
As the economic slowdown continues worldwide the 56-year-old Briton - who is a resident of Janabiya and has lived and worked across the Middle East for over 25 years - believes that the only way the world can beat the economic crises is through co-operation and sound regulation of financial markets.
"It is clearly important that the global turmoil is addressed and contained in the short term to stabilise the world's finance sector," he said. "Further, there has to be co-operation across markets and the global adoption of sound regulation of financial markets to ensure long term stability to avoid similar crises in the future.
"From a business standpoint, it's important that the world continues to support free and transparent multi-lateral trade without recourse to defensive and protective trade barriers.
"For Bahrain, it's important for the GCC to act together and to foster harmony in customs, legislation and business to business protocols."
