Turmoil may 'usher in new regulations'
Manama, November 12, 2008
In the wake of the global economic downturn the world will probably adopt a bit too much regulations, Bahrain Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa told delegates at a financial conference.
Speaking at the opening of the two-day Hedge Funds Middle East Summit at the Ritz-Carlton Bahrain Hotel and Spa on Tuesday, he said, "The pendulum of regulation will swing from one way to the other and make it more difficult to do business."
"There will probably be too much regulation in the wake of the global financial crisis as the pendulum swings too far the other way."
"In Bahrain we have a conservative economic model and we are pleased with this long-term conservative model," said Shaikh Ahmed.
"That does not mean we are not seeking challenges, but when you look at the Bahrain financial system you see one where the balance of payments and the fiscal system are looking good in spite of the global downturn.
"The next challenge will be the challenge of the real economy."
He said Bahrain would address this challenge with its Economic Vision 2030.
"We have seen the economy change from an economy based on oil to a diversified economy and Economic Vision 2030 is a document supported by a plan for six years and supported by a budget," he said.
"The Economic Vision 2030 for Bahrain outlines the future path for the development of the economy.
"At the heart of the Economic Vision lies the aspirations for our economy, government and society in accordance with the guiding principles of sustainability, competitiveness and, fairness.
"In collaboration with the legislative body, civil society and the private sector, the Bahraini government will develop detailed strategic and operational plans for making these aspirations a reality.
"In particular, the Economic Vision will be translated into a tangible and coordinated National Strategy across government institutions," he said.-TradeArabia News Service