The CEO of the Bahrain Economic Development Board (BEDB) said the nation is looking forward to a new era of economic cooperation with Singapore following the signing of a free trade agreement with all the GCC States here early this week. Sheikh Mohammed Bin Essa Al Khalifa, CEO of BEDB, said the agreement will be a springboard for new business opportunities with Singapore which is already one of Bahrain's most important trading partners. He said: “The agreement will help facilitate and promote a greater flow of goods, services and investment between our countries and strategically link the Gulf region with Singapore. “It is one more example of Bahrain positioning itself as the location for companies and organizations to do business not only with the whole Gulf but beyond to the GCC's trading partners.” The FTA means that 99 percent of Singapore's exports to the Gulf will be tariff-free including electronics, petrochemicals, jewelry, machinery and steel-related industry. In return Singapore grants zero-tariff treatment on all GCC imports. Another benefit will be that low-value goods will not need a certificate of origin, reducing paperwork and red tape for traders. Sheikh Mohammed added. “The signing of the agreement is just the beginning. Bahrain is diversifying its economy to deliver sustainable development. The liberalization of trade in important sectors between our two countries will act as a springboard for future growth.” The agreement reaffirmed that Singapore can own 100 percent of companies in banking or insurance in Bahrain, the financial hub of the Arab world. The only GCC State to hold an FTA with the US, Bahrain provides foreign investors the most open market access in the Gulf. Bahrain and Singapore share similarities in terms of developmental and geographical conditions as well as economic and financial development goals. Both are business hubs with natural gateway to larger markets. The governments and private enterprises in both countries have entered into other strategic alliances as the Bahrain Stock Exchange and the Singapore Stock Exchange agreeing a Memorandum of Understanding to explore collaborative opportunities for the benefit of their financial services industries. And Bahrain and Singapore have long-established and close business connections. Bahrain-based investment bank Arcapita has a regional headquarters in Singapore and the Singapore Business Federation launched a joint initiative with Bahrain in October this year anticipating assisting close to 400 Singapore businesses to set up in the Middle East. Singapore companies in the food and beverage and retail businesses - such as Charles & Keith, BreadTalk and Pastamania - already have successful operations in Bahrain. __
