Bahrain-Qatar economic links set for major boost

MANAMA: A joint bank and investment company as well as partnerships in the aluminium, glass, real estate and transportation sectors could be created as joint ventures between Bahrain and Qatar. They are among the possibilities being discussed at a two-day meeting between Qatari and Bahraini businessmen, which began yesterday.

Industry and Commerce Minister Dr Hassan Fakhro addressed the opening, saying he hoped that businessmen from the two countries would continue to meet regularly.

"Trade relations between the two countries have been improving, with bilateral trade rising form BD17 million in 2000 to BD47m last year," said Dr Fakhro.

"No doubt the initiative to establish a causeway between the two countries will be an additional incentive for more trade."

Bahrain Chamber of Commerce and Industry (BCCI) president Dr Essam Fakhro said that the bank idea would be discussed on the second day of the meeting today.

"We don't yet know what kind of bank it will be. It could be a commercial, real estate or investment bank," he said.

The proposed investment firm would be an umbrella company for all the other projects.

"The other projects would each be independent, with different investors, but they may all exist under the umbrella of this investment company, if it is launched," said Dr Fakhro.

He is leading Bahrain's delegation, while the Qatari group is led by Qatar Chamber of Commerce and Industry president Shaikh Khalifa bin Jassim Al Thani.

Shaikh Khalifa said that he had high hopes for boosting trade between Bahrain and Qatar.

"The two countries have historical relations and many opportunities ahead of them," he said.

"We hope that the discussions will result in the signing of agreements and become reality."

The meetings are being held at the Gulf Hotel's Gulf International Convention and Exhibition Centre.

BCCI industrial committee chairman Sharif Ahmadi said that a proposed aluminium extrusion company was likely to be built in Qatar.

"Bahrain's Balexco (Bahrain Aluminium Extrusion Company) is likely to be involved in the project, because of its experience in the field," he said.

"It will most probably be located in Qatar because they are building an aluminium smelter there and they don't have an extrusion company. They need to develop their downstream industry. Mr Ahmadi said that the location of three other major projects hadn't been finalised yet, but that they would likely be 50-50 joint ventures. "These include a glass processing factory, a transportation company that will move people and goods between the upcoming Qatari-Bahraini causeway and a real estate investment company," he said.

"The real estate company will likely begin with investing in the Bahraini and Qatari markets and then expand into other markets in the future."