The man leading Bahrain’s private sector development wants to emulate Norway’s design when the item comes to oil, he told CNBC on Wednesday.
“I’m trying to promote the Norway story. Norway discovered oil after they industrialized, as well as started out to use oil as capital. that will’s what we need to look for,” Sheikh Mohammed bin Essa Al Khalifa told CNBC’s Hadley Gamble during the Gateway Gulf Bahrain forum within the capital Manama.
Al Khalifa will be the chairman of Bahrain’s semi-autonomous governmental agency Tamkeen, which will be tasked with driving the kingdom’s economic development, increasing productivity as well as creating jobs. Tamkeen was established in 2006 as part of the government’s reform initiatives.
“We’ve invested within the basic infrastructure, that will’s done,” Al Khalifa said. “So the item will be more using oil as capital, not cash flow, as well as reaching a point where recurrent revenue matches recurrent expenditure within the government.”
By pointing to Norway, Al Khalifa was referencing the oil-rich Nordic state’s sovereign wealth fund, which will be the largest within the entire world. Established in 1990, the Government Pension Fund of Norway fund has been used to invest the country’s surplus petroleum revenues, putting that will oil money to work. To date, the item has over $1 trillion in assets, including 1.3 percent of global equities.
“the item’ll take time to get there, I’m not saying the item’ll be done easily, yet I think the oil gives us an opportunity to be able to invest as well as grow the region better,” Al Khalifa added. “We no longer need the item to provide services — most of the services either pay for themselves or are on the way to paying for themselves. the item’s getting within the mindset to use oil as capital, as well as not cash flow.”