Friday 18 March 2011

Bahrain, the business hub that was | beyondbrics – FT.com

Bahrain’s hopes of wresting back its crown as the regional finance and business centre from Dubai has gone up in a puff of tear gas and with the crunch of truncheons.

The island kingdom’s security forces – recently reinforced by troops and police from neighbouring Saudi Arabia and the United Arab Emirates – may be back in control of the capital of Manama, after a brutal crackdown on protesters, but its reputation as a relatively liberal, business-friendly hub in the Gulf has been shattered.

The economy has ground to a halt, with businessmen reporting that some companies may not be able to make payroll unless commerce picks up. A general strike called this week will worsen the situation – and hurt government finances, as Bapco, the important state-owned oil refinery, has been shut down.

No comments:

Post a Comment