By SOMAN BABY
MANAMA: Brunei Darussalam is due to strengthen its financial and economic ties with Bahrain, according to charge d' affaires Haji Mulok Jumat. Two agreements are to be signed between the two countries this year - on the promotion and protection of investment and avoidance of double taxation.
Speaking yesterday on the eve of the Sultanate's 20th National Day celebrations, Mr Jumat said his country would further tap into Bahrain's financial community to strengthen the Brunei International Financial Centre (BIFC).
"Brunei and Bahrain have much in common under the dynamic leadership of Sultan Hassanal Bolkiah and His Majesty King Hamad, who studied together at the Royal Military Academy, Sandhurst, in the UK," he said.
"Since the establishment of diplomatic ties between the two countries in June 2001, the growth in relationship has been steady and strong."
Mr Jumat described visits by Sultan Bolkiah to Bahrain and Prime Minister Shaikh Khalifa bin Salman Al Khalifa to Brunei in the past few years as a "crowning glory" in the strong ties between the two countries.
"During the visit of the Prime Minister, it was agreed to forge closer ties between the two countries in financial and economic matters," he revealed.
"Bahrain has already prepared drafts for the agreements on the promotion and protection of investment and the avoidance of double taxation.
"A high-level delegation from Brunei will visit Bahrain shortly in preparation for the signing of agreements."
After having diversified the oil-driven economy into an offshore banking and financial centre, Brunei has been drawing a lot of experience from Bahrain, which has firmly established itself as an international financial hub, said Mr Jumat.
He added that Brunei has benefited substantially from the Bahrain Monetary Agency's (BMA) expertise in the area of Islamic banking.
Banking officials from Brunei have been making regular visits to Bahrain to take part in financial seminars and conferences.
"We are all set to enhance this strong bond of friendship, having laid the necessary groundwork at the highest levels," said Mr Jumat.
"We hope His Majesty King Hamad will visit Brunei in the near future, opening a new golden chapter in our relationship."
Though the trade balance between Brunei and Bahrain is now negligible, it is thought there is a lot of potential for improving the figures.
"Tourism is one potential area where we can focus on - especially in the development of eco-tourism," said Mr Jumat.
"Brunei is 10 times bigger than Bahrain in size, but the population is only 300,000 - a quarter of them expatriates.
"We currently attract about one million tourists every year. We are aiming to get a share of international tourists, including those from Bahrain, who currently visit Malaysia."
Meanwhile, the diplomat revealed studies are underway into the possibility of resuming flights of Royal Brunei to Bahrain, which were suspended in 1997.
"We are trying to operate via one of the points in India to make it commercially viable," he said.
Mr Jumat is hosting a reception at the Regency Inter-Continental Hotel tonight to mark National Day.
