Half a million dinars for a water spout!

water spout costing half a million Bahraini dinarsHalf a million! And not a single red fils for budding businessmen and their small businesses.

Half a million! And businesses still have to finance the government to the rate of 5% on every project undertaken by way of that stupid “performance bond”.

Half a million! And the government itself does not have any faith whatsoever in the legal system; hence, applies the above 5%.

Half a million! And no bank, NONE, has any faith in the small business community.

Half a million! And they are still TALKING about venture capital.

Half a million! And the “development” bank don’t give a damn about the vast majority of businesses.

Half a million! And “islamic” banks won’t extend credit to small businesses even though they hold substantial security compared to miniscule requirements.

Half a million! And “regular” banks won’t even LOOK at small businesses even though they have been forced to deal with them for tens of years.

Half a million! While the Chamber of Commerce members are more concerned with religious issues and using their position there as a leverage for the upcoming elections, rather than helping small businesses prosper.

Half a million! And the Ministry of Finance has not closed the 2005 budget.

Half a million! And the Ministry of Finance won’t release payments due in December, and this is almost March!

Half a million! And no one gives a shit if small businesses get flushed down the toilet through no fault of their own.

But then what’s the difference? Half a million here or half a billion there? If you’re not “in“, you’re simply OUT!

So deal with it!

Comments

  1. NomadicArab

    tsk tsk, mahmood. such sweeping generalizations re the chamber of commerce. “some” BCCI members, not “the” BCCI members.

    but, overall, I agree. small businesses in bahrain have great, yet untapped, potential.

    its about time some venture capital firms set up shop in the region. maybe something i can do when i move back? 😉

  2. Mamood

    Does the water spout need 6 ministers to lunch it !!! Where it is located !!! I passed today morning near Al Fateh Highway. However, I couldn’t notice it !!!

  3. Chanad

    I met a man last year who claimed that he doesn’t have running water in his home. He said that he washes himself in the sea, and pointed to the salt stains on his shoes. With this new fountain this man will at least have a pleasant view the next time he goes to the shore to wash up.

  4. sillybahrainigirl

    hehe ..

    And will not having the fountain solve all the problems Bahrain is facing?

    Come on, let’s be a bit realistic here!

    Sit back and enjoy the show 🙂

  5. Bahrain 4eva!

    I agree that half a million smackaroos is too much for this fountain, especially when the Small businesses in Bahrain are getting few, if any, support! I think this is nothing shocking though Mahmood.. Come on, we’ve seen much worse! For now, as the silly girl says, sit down and enjoy the show people :)!

  6. Laura(southernxyl)

    I think you have to draw the line somewhere.

    We got snookered into building an NBA stadium when we still hadn’t paid off the last stadium that was supposed to be NBA-ready but that the Grizzlies turned up their noses at. Some people had a petition drive to try to force a referendum so that the local gov’t would have to at least ASK us if we wanted the damn thing. I signed it. But there was some legal reason why the referendum didn’t go through. They were afraid to ask us what we wanted because we would have said no. But you can’t refuse to pay your taxes.

    The worst thing is, people don’t remember this kind of thing when they go to the polls, so we get it over and over.

  7. moz

    Hi mahmood,

    i’m half way through john bradley’s book, love it. Could you please recommend a few more good reads.

    Thanks

  8. mahmood

    recommend a few more good reads

    Not sure if this is still in print, but Merchants of the Gulf is an interesting historical perspective on how the rich here got rich.

  9. mahmood

    as silly girl says, sit down and enjoy the show people

    Oh, I’ll enjoy it for all of two minutes while I watch my business, as well as those of hundreds of others, being stifled and flounder because of the government, business organisations AND large business inaction to help small businesses become slightly (just slightly) larger ones. You know, so we could comfortably employ more people and contribute more to the local economy?

  10. mahmood

    With this new fountain this man will at least have a pleasant view the next time he goes to the shore to wash up.

    I would wager a substantial sum against the man being even within 10 kilometers radius of that fountain!

    The American Base, Bahrain Schoolers and of course quite a few ex-East Europeans and their patrons would enjoy it tremendously though!

  11. mahmood

    its about time some venture capital firms set up shop in the region.

    whatchatalkinaboutman? Bahrain just finished hosting one of those VC conferences last week with the promise that they will set up even more VC firms, implying of course that there are a few already present.

    I like the way they translated Venture Capital into Arabic though: رآس المال الشجاع – which is literally translated back as “courageous capital” – to me, there is absolutely NOTHING courageous as far as the financial institutions here. Nothing. Not unless you’re a member of the board, or with connections to the members of the board, then you can rack up “loans” worth BD28 million and walk away with it!

  12. mahmood

    Laura: But you can’t refuse to pay your taxes.

    That’s what the minister of commerce and industry threatened in an interview a week or so ago in Al-Wasat; he was floating the idea of corporate taxation, only to come back the next day and wheedle out of that somehow by printing a retraction.

    But taxes are important, and i am prepared to pay them IF I were to be assured of the way those tax Dinars are to be spent, and the only way to do that is proper and fair representation and my ability to elect the head of state or at least it’s prime minister.

    That ain’t gonna happen for quite a while.

  13. NomadicArab

    Well Mahmood, I agree with your earlier point. Yet it remain painfully obvious that the VC shops in the region choose to pursue other opportunities ABROAD (ala investcorp / arcapita, etc). Now you there are some exceptions, like Bahrain Bay which Arcapita is financing, but those tend to be real estate investments as opposed to small business investments.

    The fact of the matter is, it is up to the market forces to provide capital to small businesses and not the government. The gov’t can aid by setting up economic policies / etc that will create a framework for small businesses to thrive.

    That’s “whatimtalkingabout”..

  14. mahmood

    Agreed!

    The government’s role should be limited largly to policy making and ensuring rules are followed and create the platform for successful investments.

  15. Anonymous

    الاخ محمود
    صباح الخير للجميع
    موضوعك شيق و لكن اعتبرة ناقص من حيث الموضوعية و الشفافية التى من المفترض علينا جميعا ان نتحلاء بها فلماذ لا نسال انفسنا هل البحرين محتاجة فعلا الى الفورملا واحد التى كلفت الدولة و المواطنين 500 مليون دينار و التى لا تقدر بالنص المليون دينار للنافورة المائية و لا يوجد اى تعليق منكم الاخ محمود علية لانك حسب مانعلم انك تحب سباق السيارات و انت مارشال فى الحلبة و فى نفس الوقت ان سلمنا ووافقنا باهمية مشروع الفورملا واحد من الناحية الاقتصادية و السياحية و الدولية غيرها فما هو الموقف من تهديد لجنة الدفاع عن محكومى احداث المطار و برنامجهم التصعيدى الدى سيستهدف الفورملا واحد فى 10 و 11 و 12 مارس القادم و الدى من المتوقع ان يوثر سلبيا على الفورملا فهل سنجد مقال منك الاخ محمود ينتقد هدة اللجنة و يطالب منها عدم التعرض الى الفورملا واحد لدلك لننتطر و ان نشوف

    مريم محمد ابراهيم
    مملكة البحرين

  16. mahmood

    الأخت مريم أهلاً مرة أخرى و شكراً على المداخلة. و لاكن أسمحيلي أن أصحح نقتطين تفضلتي بهما: الأولى هي أن سعر التكلفة الأصلية لتشييد حلبة البحرين لسباق السيارات كانت 150 مليون دولار و ليس دينار. الكلفة الدينار البحريني إذاً تقارب 56.6

    النقطة الأخرى هي أني لست مارشال هناك و لم أكن أبداً بذاك المنصب

    إما عن التصعيد السياسي المرتقب في آونة السباق أو في أي مناسبة أخرى فهو حق سياسي مشروع و لا إعتراض عليه ما دامت الإعتراضات أو الإعتصامات سلمية و حضارية بحتة و هذا من صلب الحقوق المدنية و الدستورية

  17. tooners

    You know… my husband has a small business but he can’t get a license to save his life. It’s all in “who you know”, from what I’ve heard. It’s really pathetic. When we were in the States, we got a license within a matter of hours… I just don’t understand it. AND… because he works for the government, we have to put the license in someone else’s name, if we even get it. Where’s the right in that? It’s not like he’s a high-ranking official within the govt sector. And I know what those ppl do, because I used to work for one such man that had multiple businesses but they were all in the names of his children and wife. It doesn’t matter because no amount of bitching will change this problem. They pretend to care about small business owners, but where’s the love??? 😉

  18. Chanad

    I would wager a substantial sum against the man being even within 10 kilometers radius of that fountain!

    You’re right he doesn’t live within 10km of the fountain. But given the rate of land reclamation and privatization of the shoreline, I won’t be surprised if he soon has to go all the way to Juffair to reach the sea.

  19. Johnster

    Actually Mahmood the fountain was never intended for bahrain. It was a gift from you know who to a nameless country but when the country proposed to install it in a rather remote position instead of in full public view along its corniche, then, in a fit of rage and with a stomp of his foot, the donor withdrew the gift.

    PS how do I sign in?

  20. zazou

    Half-a-Million and not working deja!!! We went to have a look at the blasted spout this morning…but apparently it’s allready been switched off..to save water…perhaps.

  21. TonyGuitar

    Yes, The license thing is unfortunate. Hand out small business licenses freely and just watch everybody get busy making money.

    Seed money should be risked freely at least for a year or so, then tighten back some.

    I want to see that Dinar gaining ground. The stronger the Dinar gets, the happier everyone will be.

    Lets hope the recent releases of tensions, bombings and shootings will relax things and allow people to get back to work.

    How strong and reliable is the National Bank? I would like to gamble in the Dinar. Especially just when things calm down and people stop *getting even* and start getting busy making money. TG

  22. Adel

    The Dinar is fixed to the Dollar $=0.377 Dinar, and Bahrain Monetary Agency just won an award for the best run Monetary whatever, I forgot.

  23. Johnster

    The $/BD is fixed and the BMA actually IS well run….probably one of the best or the best in the region. Look at Dubai and the firing of Mr Thorpe, the former British (ex something very important in the City) head of the Dubai International Financial Centre and Mr hay Davison when they uncovered some dubious transactions concerning the land which the DIFC was built on. There were another five resignations a year later, see this report:

    http://www.itp.net/business/news/details.php?id=15065&srh=&tbl=itp_news

    Anyway, there is all this talk of a common GCC currency…so won’t need the dollar. Coupled with the fact that oil will one day be priced entirely in Euro’s, the sun is setting on the American century (and if that isn’t Steve-bait, I don’t know what is}

  24. Adel

    Oil priced in Euro will never happen, EU may crumble down before that happens. $ weakness is a temporary thing and the GCC currency will still be pegged to the dollar or some kind of a currency basket which $ will have the highest percentage in. BMA is facing a problem of imigration of qualified staff to the privte sector, but agree it is still the best run among the Arab Countries.

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