`Till 1965, the Indian rupee was our currency`

Q&A/ Mohammed Bin Essa Al-Khalifa, chief executive, EDB Bahrain

EDB is assigned the task of creating the right climate to attract direct investment into Bahrain. It is also the key player in marketing Bahrain abroad and promoting business investment opportunities world over. In an exclusive interview, chief Executive, EDB, spoke to Business Standard about Bahrain's interests in India.

How strong is the business linkage between India and Bahrain?

 

We have had traditional tie-ups with India for centuries and Bahrain used to be the gateway for Indian spices trade to the West. Till 1965, Indian rupee was our currency. Atleast three of our ministers were educated In India. The presence of Indian trade and talent are very strong in Baharin.

However, for the last 20-30 years we had been following a Focus West policy, which reduced our engagements with India. Today, we are here to re-strengthen our ties with India. We are looking to create stronger links and partnerships.

What are the sectors that promise greater Indian Bahrain engagement?

Bahrain in the strongest country in the Gulf when it comes to wealth generation. The country offers cheap energy, access to gulf markets and also a trade window to the US through the existing free trade agreement with the United States.

In turn, we are interested in the investing opportunities in Asian market. We look at India as a very interesting market for investment. So it is interest on both fronts. Thus, financial services, healthcare, infrastructure and energy are the major areas that can attract more partnerships and engagements.

Can we begin with the focus areas for Bahrain?

Energy is one major focus area. Equally important is aluminum mining. We have one of the biggest aluminum reserves in the region. We also have cheap fuel availability. The mining industry in India might be interested in exploring that opportunity.

Healthcare and real-estate players should also find attractive business opportunities in Bahrain. We have already had $200 million Indian investment in Baharin in real estate sector.

Similarly, we are developing motorsports business in a big way. Indian entrepreneurs are already exploring the possibilities of setting up automobile spare parts and component making facilities in Bahrain.

How big is Indian presence in Bahrain?

The largest overseas branch of ICICI Bank is in Bahrain.Others like State Bank of India are also have a major presence there. McX, the commodity exchange has opened a branch in Bahrain.

On the financial side, Indian firms have made a strong presence. It is growing very well. On Information Technology, all major players like WIPRO, Satyam and TCS have offices in Bahrain to service their clients. I am looking at seeing more of them in Bahrain. Similarly, one of the major Indian healthcare groups have shown interest in Bahrain. However it is too early to give details.

What about India?

Infrastructure is a big area. India is undergoing tremendous growth in basic infrastructure areas. Similarly, Bahrain has invested $500 million in the Indian real estate and energy sectors.

Could you give details of the investment?

I dont think I should. Let the individual companies speak about the specifics of the deal. All I can say is that Indian and Bahrain companies have signed specific agreements for partnerships in areas like healthcare, real estate and energy.

What could be the size of such joint venture potential?

The sky is the limit. Putting a number is really good for newspapers, but it may not be realistic. We are looking for generating value and employment on both sides. Our ambition is to grow. We have planned atleast four more trips to India during this year itself. The idea is to have more interaction, more collaborations. Bankers, engineers, doctors...Indians are everywhere in Baharin. Across all sectors. And we have very good partnerships.

What is your comment on the investment climate that India offers?

We have been attending a global conference which mixed the economics and politics of India. It was an eye opener as India has tried to give us an understanding about the political direction. It has given us a re-assurance that the country is moving in the right direction, right attitude, that encourages foreign investments.

So investment climate is ideal?

No, one should keep opening up and allow others to partner with you in your growth. Though a small country, we opened up to the world and realised that it did us good. India should relax its foreign investment regulations to make it easy for people to invest in the country.

The regulations needed to register a company, register a financial institution should all be eased. Today the biggest investor in India is Mauritius. And it is our money that is coming through Mauritius. Why do we have to go to Mauritius? I would rather prefer coming to India directly.

Any positive signals from the Indian government?

We have not had any direct talks in this regard till now. But we have good relations with Indian government and is always look towards improving it.

What could be the current engagement in financial sector?

The aspiration is to make it in several billions.