World Economic Forum

Digital Trade and Cross Border Data Flows

Agenda

Item 1 Bahrain Vision

Item 2 Steps Towards Establishing a Digital Economy
Item 3 Initiatives
Item 4 Selected Candidate – Nada Al Saeed
Bahrain Vision

GCC economies currently undergoing a crucial economic

transformation

VISION

 Build a supportive business ecosystem

 Enable growth and provide access to the regional market
 Establish a thriving ecosystem of start-ups
 Implement the right infrastructure including legal and regulatory
structures

 Permit easy access to finance, expertise and human capital

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Why Bahrain?
Strategic location
• Fastest and Cheapest access to key
markets; KSA, UAE & Kuwait
• Access to 75% of Saudi Arabia’s market
within a 2 hour drive time radius
Cost Competitive
• The cost of doing business in Bahrain is
significantly more competitive than the rest of
the region.(30% cost savings)
High quality infrastructure
• Bahrain has an open and forward-thinking
approach, investing heavily in ICT
infrastructure.
Business Friendly Environment
• Bahrain allows 100% foreign ownership and
management
• Zero Corporate and Personal Taxation
• 2nd in MENA in Ease of Doing Business
(2017)
Skilled local workforce
• A hub for talent with a professionally qualified
workforce with bilingual capabilities
• Robust local talent pool with flexibility to hire
100% foreign employment without any
restrictions
High quality of life
• Ranked 9th Globally for Expat Satisfaction
• Competitive cost of living in comparison to
neighboring countries.
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New Digital Economy

Bahrain to become a testbed for new products and services

AWS launch Start-Ups

 World class infrastructure and telecommunications  Strong and supportive ecosystem for technology
networks led innovation
 Startup Bahrain initiative
Fintech initiatives
 Regulatory Sandbox – innovation enabler Bahrain Fintech Bay
 Crowdfunding – SME access to capital markets  State of the art facilities
 Cloud First Policy – Applicable to government
entities  Largest dedicated Fintech hub in the region

Digital Content & e-

Commerce
Cloud Digital Streaming /
SaaS / Data Centers Gaming / e-Commerce Business Services Cyber Security Startups

Bahrain is 1st globally in terms of mobile broadband superscriptions per 100

population and 2nd globally and 1st in MENA in terms of internet users

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Liberalized regulations & policies

Business Operations Financial Regulation

Completed Completed
 Reduced minimum capital requirements
 Introduced online portal for business registration
 Trusts Law
(SIJILAT)
 Visa upon arrival for nationals from over 66 countries
 Limited Investment Partnership Law
 Introduced investor e-Visa and Tourist e-Visa
 100% foreign ownership allowed in majority of sectors
 Protected Cells Companies Law
 FinTech Regulatory Sandbox
 Crowdfunding Regulation

In the Pipeline In the Pipeline

• Further liberalization of industries • Bankruptcy Law • Data Protection Law
• Efficiency gains in online processes • Secured Transaction Law

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Liberal telecommunication market
Bahrain was the first country in the region to
fully deregulate its telecommunications
market
The Telecommunications Regulatory
Authority (TRA) was announced as the best
regulator of the year in the 10th edition of the
annual CommsMEA Awards
The TRA has issued more than 150 licenses
The 4th National Telecom Plan was
developed to set out guidelines for telecoms
sector for the next 3 years
Case Study: Bahrain as a testing ground for new
technologies
VIVA Bahrain established an investment fund worth
$300 million to drive innovation in ICT-related
domains such as e-health, e-learning, e-banking,
applications and e-commerce in Bahrain and around
the GCC.
In 2016, VIVA Bahrain made a global breakthrough
by successfully implementing, for the first time
commercially, Huawei’s triple-beam antenna
technology. This innovative technology offers higher
quality telecommunications services at events or
locations were data demand is extremely high.
VIVA’s first deployed the solution during the ‘2016
F1 Gulf Air Bahrain Grand Prix’ race. This was the
first stage of a full roll out planned of this technology
in different locations across Bahrain.
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ICT infrastructure

Bahrain offers the Most Competitive

Bahrain ranks 1st Globally in Mobile
and Affordable ICT services in the
Network Coverage (WEF, 2016)
GCC (WEF, 2016)

Bahrain is MENA’s Top Telecom Bahrain ranks 1st in MENA in

Infrastructure, 11th Globally (UN, electricity production and 3rd globally
2016) (WEF, 2016)

Bahrain is MENA’s Top ICT Electricity Production exceeds

infrastructure, 10th Globally (INSEAD, 19200 (kWh) per capita (International
2016) Energy Agency, 2015)

Source: Global Information Technology Report - WEF 2016, e-Government Survey Report - UN 2016,
Government Innovation Report - INESAD, WIPO and Cornell University 2016, International Energy Agency 8
2015
 International & regional connectivity

4 submarine fiber optic systems

Fiber networks still underutilized
and will easily meet the growing
demand for international
2 terrestrial dark fiber systems
connectivity

BAHRAIN CABLE CONNECTIONS Cable Connections

Fiber Optic Gulf
Kuwait, Bahrain, Qatar, UAE
(FOG)
Kuwait, Bahrain, KSA, Qatar, UAE,
Falcon
Oman, Yemen, Sudan, Egypt, India
Kuwait, Bahrain, KSA, Qatar, UAE,
Gulf Bridge Oman, Iran, Iraq (connectivity to
International Mumbai and Europe through MENA
cable system)
TGN-Gulf KSA, Bahrain, Qatar, UAE, Oman
Kuwait, Bahrain, KSA, Qatar, UAE,
BGN (GCCI) Oman, (Red Sea CLS to be launched in
2018)
*Bahrain also offers direct access to Saudi King Fahd
network operators like STC
KSA, Bahrain
Causeway (KFC)

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Soft Infrastructure
Large momentum on promotion and development of soft infrastructure

Newly Launched Fintech Sandbox

 Virtual space to safely test technology based innovative solutions

Newly Launched Crowdfunding Regulations

 Promotion of alternative financing whilst reducing cost and providing opportunity to invest in startups

Cloud First Policy

 Building efficiency in the public sector whilst enhancing technical efficiency and reducing IT expenditures

E-Transaction Law
 Updated to capture cloud services

Electronic Transferable Records Law

 Draft based on UNCITRAL model law to promote Fintech investments and innovation in Fintech and ICT sectors

Cloud and Data Hosting Law

 Overarching legislation creating a competitive environment for hosting data currently being drafted

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Initiatives

CLOUD
Bahrain’s cloud market

Bahrain’s Cloud Computing Growth Drivers

Spending (USD mn)
41.7
36.6 Tech savvy population
31.8
27.5
23.4
19.4
15.6 Thriving SME sector

2015 2016 2017f 2018f 2019f 2020f 2021f Emerging start-up scene

• Cloud spending increased at rate of

24.4% in 2016.

• Planned investments in data centers and Industry tech-adoption

network infrastructure are expected to
further accelerate the growth of the cloud
market.

Source: BMI forecasts

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 Cloud computing initiatives

Bahrain is committed to enhance the cloud ecosystem through the

implementation of a number of initiatives:

Education &
Cloud Policy Laws & Regulations Connectivity
Training
• Reviewing regulations • Introducing a data • Enhancing Bahrain’s • Introducing a Center
within the Central protection law fiber-optic connectivity for Transition to assist
Bank to encourage • Establishing Country globally and regionally cloud migration
financial institutions to of Origin Agreements • Subsidizing cloud
utilize the cloud with regional and certification for
international countries Tamkeen beneficiaries

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Forward Thinking Cloud Policy

Cloud First Policy

Public Private Bahrain's Cloud First Policy

 Requires all Government Entities and Companies to

leverage the Cloud for IT
Cloud Financial
Cloud Credits Government  Supports and Incentivizes the Private Sector to move on
Infrastructure Services
for Grants for
and Software Cloud to the Cloud
Businesses Training
Preference Regulations
 Funds free training for Bahrainis in Cloud Skills

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Cloud computing growth drivers:
Thriving SME sector

C5 Accelerate Limited, the London-

SMEs represents 99% of
and Bahrain-based technology
Bahrain’s private sector
investment specialist, working with
Amazon Web Services (AWS)
launched the first Cloud Accelerator
in the Middle East and Africa
SMEs contribute 28% to Bahraini
GDP
• Designed to enable the rapid adoption of cloud
technology

• Catalyst for future investments in cloud

computing services
SMEs contribute to 73% of
Bahraini employment • Prompts introduction of tech across various
verticals

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Initiatives

CYBER SECURITY
Cybercrime in MENA

In 2015, companies in the Middle East Recent Cyber Attacks

suffered larger losses than other regions
• The 2012 Shamoon attack on Saudi’s
Aramco was one of the most
57% of Middle Eastern companies lost destructive cyber attacks on a private
57% more than $500,000 compared to 33% business.
globally
• In 2012, the Qatari natural gas
company (RasGas) was hit with a
Theft of “hard” intellectual property similar Shamoon virus that shut down
56%
increased by 56% in 2015 its website and e-mail servers.

• In 2013, UAE and Oman banks

The average financial loss due to
suffered a loss of over USD45 mn due
security incidents amounts to USD 2.5
to one of the biggest ATM cyber-heist
mn
in the region.

EMEA advanced targeted threats detected by industry (2015)

Financial services Government Energy Aerospace Telecom
(23%) (15%) (12%) (11%) (10%)

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MENA opportunity

With the exceptions of the

banking and energy sectors, Adoption of strategic security initiatives in MENA
MENA’s cyber security spend (% of companies)
does not meet the global 95%
standard.

69%
65%
59% 59%
Only 45% of Middle Eastern firms
have a security strategy as
opposed to 58% of firms globally.

37% of firms have a

comprehensive security and Cloud-based Big data Cybersecurity Risk-based Foremally
training awareness program in cyber security analytics insurance security colaborate
comparison to 53% globally. framework with others

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C5 Cybersecurity Lab
C5 established a cybersecurity
laboratory in Bahrain with the aim of
driving better awareness and
encouraging developments of
solutions to address threats of
cyberattacks in the MENA region.
Cybersecurity market in the
region is suffering from a skills
shortage- this lab will solve for
this gap.
On a regional level, it will
organize events, seminars, and
training sessions.
C5 will work closely with
government and technology
startups in the region through its
Cloud10 accelerator program.
Develop a new law for Cyber
Security to enhance the business
environment and support key
sectors such as ICT, IT and
Financial sectors
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Selected Candidate
Selected Candidate

NADA AL SAEED
Manager – Market and Strategy Intelligence
Projects Undertaken:

 National Wage Protection System (2017)

 Export Development Centre (2011, 2016)
 Amazon Web Services project, Bahrain (2015-2016)
 2015-2018 National Development Strategy
 National Budgeting Process (2014)
 Transportation Strategic Plan (2013)
 New Public Transportation System (2013)
 Improving Bahrain’s Postal Services (2013)
 Cabinet Affairs Process Re-engineering (2012)
 Business Licensing Integrated System (2011)

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