Tuesday, 1 March 2011

A setback for business-friendly Bahrain

Two weeks ago, Bahraini business leaders touched down in Phoenix to push more trade between the Persian Gulf monarchy and the Arizona city twice its size. The same day they met with the mayor, demonstrations erupted at home and one protester was killed.

The Bahrainis signed a trade agreement, but they cut the trip short and jetted home. The unrest that has convulsed the island nation for two weeks has shaken investors and damaged Bahrain's efforts to present itself as the most business-friendly country in the gulf, analysts say.

Top Bahraini officials said that they were confident the country will ride out the storm and that they had not seen investors pulling money off the island, which has turned itself into a banking hub.

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