allowing expatriate workers the freedom to change their employers for the first time. we are also embarking on a major reform of our educational institutions, such as establishing the bahrain polytechnic, as we realise that there is still much work to be done to provide our young people with the types of vocational skills that they need to flourish in the modern world. underpinning all of these initiatives is our continuing commitment to political reform. as you will have seen in the news, in late october we held elections for the lower house of parliament, and these passed off peacefully and with a 67 % turnout of the electorate. outside the kingdom, some commentators had questioned our commitment to maintaining a system of constitutional government. however, their skepticism was unfounded, and our commitment to political reform remains strong. let me conclude by thanking you for coming to bahrain and for attending the dinner this evening. it is testament to the continuing strong ties between britain and bahrain, a relationship that we have always valued in the past and will continue to value in the future. thank you for your attention.

rasheed mohammed al maraj : the role of the financial services industry in bahrain keynote speech by his excellency rasheed mohammed al maraj, governor of the central bank of bahrain, at the bahrain british business forum, manama, 21 november 2010. * * * distinguished guests, ladies and gentlemen : i would like to begin by thanking mr. al - zayani for his kind invitation to address you this evening. i would also like to extend an especially warm welcome to those of you who may be visiting bahrain for the first time. to those of you who are making a return visit, it is a great pleasure to have you with us again. as i am sure you are aware, the ties that bind bahrain and britain together are deep and long - lasting. it should not be a surprise to learn that these bonds extend deep into the financial services industry. the predecessor to the central bank of bahrain, the bahrain monetary agency, was established with technical assistance from the bank of england. we have frequently looked to the uk for our regulatory models, although we also have needed to adapt our policies and practices to our specific circumstances. our aim is to adopt a regulatory approach that is open, transparent, and that involves close consultation with the industry. we take the view that anything is permitted unless it is explicitly prohibited. as a public institution, the cbb is also proud of the fact that we are bound by the rule of law and we ensure that there is a clear legal basis for all of our decisions and directives. the hallmarks of our regulatory approach are consistency, predictability and equal treatment for both foreign and domestic firms. these policies have served bahrain well and have been a major contribution to the growth of our financial sector. since the 1970s, financial services have been one of the great success stories of our economy, along with tourism and manufacturing that have also made strong contributions to economic growth. bahrain ’ s economy has become the most diversified of any in the gcc, with the financial sector accounting for over one quarter of our national output, a larger share than oil production and processing. at present, over 400 licensed financial institutions operate in bahrain, including 133 banks and 167 insurance companies. many are branches or offices of major financial institutions. although our domestic market is small, many of the banks, insurers and asset management firms located in bahrain use their presence as a hub from which to tap into the enormous opportunities that exist in both the gcc and the wider middle east.