>> Live from Bahrain, it's theCUBE. Covering AWS Summit Bahrain. Brought to you by Amazon Web Services. >> Hello everyone, welcome back to theCUBE's exclusive coverage live here in Bahrain. This is our exclusive coverage of Amazon's new region we're covering. Part of AWS Summit, first time here in the Middle East for theCUBE. We're excited to be here. Next guest is Tala Fakhro, Executive Director of Market and Strategy Intelligence of Bahrain's Economic Development Board, also known as the EDB. >> That's right! >> Great to see you. Thanks for coming on. >> Thanks for having me. >> I've learned so much and it was great to meet you last night and have a conversation around some of the things you are working on. The Economic Development Board is a big part of this digital first, cloud first strategy. >> That's right. >> And Amazon's at the center of it. They're going to drop a region in here. This is really big news and it's certainly got our attention. And I've learned so much about what's happening in the startup community. >> Yes, we are very-- >> You've got a lot going on. What's the impact of the AWS region mean for Bahrain, the region, and the economic development opportunity? >> We took a look at Bahrain, and we decided we are going to have to transform this economy from an oil dependent one into a digital one. It just, it seemed like the right thing to do. And having Amazon here, attracting Amazon, allows us to plant that flag to say we are serious, we want to do this. And we will do what we need to do. We, we work together as a government. You know Bahrain is unique because we can do we can do things really fast when we want to. We built the Formula One Racetrack in 14 months, which is unheard of. And we did the same for Amazon. We engaged with them at every level. It wasn't just let's talk about this plot of land here, or this fiber optic cable there. We had the government engaged in legislation, and regulation and education. Every part of the government was actively pushing for this transaction. >> And I think that's an important point. I want to just amplify and double down on that and talk about it, because I think culturally, Bahrain, what I learned was this is a culture of fast moving, open, friendly but pragmatic people. >> Absolutely. >> And that's Amazon's ethos. >> Absolutely. >> Scale, move fast, and innovate. >> Absolutely. We, we've been a trading nation all our lives since time immemorial, you know. We're a tiny little country in the middle of the map. We were cross-border trading before we knew what that was called. So this is something not unique to us. It is part of our DNA, and we found a good match with Amazon. They wanted all the same things we wanted and they are genuinely interested in making the ecosystem of the countries in which they install their regions better. And we found that to be very attractive for us. >> So I've got to ask you, as Amazon comes in they're expected to have that, this region up and running in the beginning of 2019. >> That's right. >> Which is just right around the corner, so they're running fast, so congratulations. >> Thank you. >> It's the new Formula One Racetrack for cloud computing. What is driving the demand for cloud computing? Because obviously we've seen the history of what's happened in North America with startups. >> That's right. >> And as Amazon goes around the world, there's a growth engine underneath Amazon. What's driving the demand for cloud computing in the region? >> Well, 96% by some measures of our entire economy are startups or SMEs. So you could imagine that the cost savings that Amazon offers is extremely attractive. In addition, the volatility of oil prices has put a big crunch on the government budget and so they are also attracted to the idea of saving some money on the cloud. And the government is a big employer and a big consumer. So they really drive the economy. >> Yeah. >> So in both, it was a win-win for everybody. We are really interested in making sure that our Startup scene is vibrant and is scalable. And cloud is the way to do that. It allows you to use as much as you need and pay for only what you would consume, so it's great. >> And so, Khalid Al Rumaihi, the CEO of the EDB. >> Yes. >> Who's a very good visionary. He has private sector background, super smart. Really enjoyed that conversation. But one of the things that we talked about was we always say in theCUBE and sometimes debate this, but data is the new oil. >> Absolutely. >> Couldn't be more indicative of an oil region, and you mentioned that in moving off the dependence of oil, or getting into a new market like data, data needs refineries as an economic opportunity. So he mentions, Vintech as a big driver for what could be possible in Bahrain as a core competency. When you do your research and your insight and intelligent analysis of the data of what's going on the macro level, is that consistent of what you are seeing that there's a need for this digital refinery, being a center point of innovation? And if so, what does that mean? What is, how should people understand that Bahrain is a small country in a big region? >> It is a small-- >> How do you differentiate? How do you take a leadership opportunity? >> Well, Bahrain is a small country but it is a small country that's rich in one thing. If it's not rich in oil, it's rich in its people. We are bilingual. Many of us are trilingual. We've always been open and outgoing and we've been willing to make partnerships and friends with other nations and other places. So we think that our human capital is coming together with the hard infrastructure that a region will bring. It makes it a, you know, a real good proposition. And it allows for our students, who are, by the way, already starting to be cloud trained. Over 2500 Bahrainis have signed up for cloud training since the program started six months ago. >> Yeah. >> That's a huge proportion given our population. That's a much faster rate than India or China for example. >> Yeah. >> So this shows you how much, how willing we are. You know coding is the new English. We learned English in the 70's so that we could compete globally. Now we are learning coding to do the same thing. >> And that's super important. Let's talk about the human capital side of it, 'cause I think this is a good point that a lot of people overlook. Everyone's now connected with mobile devices, so connectedness is now common. So coding is the new language. Digital is the new culture. How are you guys looking at transforming some of the day-to-day citizen roles? Because now you have opportunities to serve citizens from a government standpoint and to get enable them to be successful. And one of the things that I noticed at the Startup Bahrain sessions I was attending yesterday was the vibrant entrepreneurs. They're opinionated, which I love. 'Cause that's what entrepreneurs are. They're like, come on, let's move faster. Where's the cash? Where's the capital? So the human capital seems to be a big equation here. What are you guys doing to facilitate that? Where are you guys on the progress bar in your mind? Are people coding at a young age? Has it started? Is it, what's, what's the progress? Can you take us through the plan? >> Well we, as I mentioned, for a cloud computing, specifically we already have programs in place. We also have many other initiatives coming up through Udacity, through Carcera, through others. We are bringing them to Bahrain to have the technical skills added to the human capital skill set that we already have. But I think most importantly, we are making it important. We are making it a forefront of the government agenda. You know, we are making it something that is a requirement. And I think that as we set our national economic strategy for the next four years, human capital is a crucial driver for that and it is going to have it's very own chapter with all the recommendations and all the initiatives that we think need to be done in order to increase, not just our stem cell but also our creativity, our entrepreneurship, >> Yeah. >> And all the things that had made us great in the past. >> You know as I was observing also, talking to your CEO about, I've seen people trying to replicate Silicon Valley trying to manufacture innovation in a way or trying to get a momentum. It's really hard. But what you guys I think have done or have here that's hard to do or hard to replicate or manufacture out of thin air is you guys have actually built a community of people. I see the entrepreneurs. I see the support around them through the EDB. You have money? >> We do. >> And you have growth coming. The other stuff's mechanics. How do you get funded? How to do this? How are you looking at that? When you look at the research and you dig into, and sometimes the best move is just let it develop. Get out of the way and let the entrepreneurs develop. How are you guys letting this develop because I won't say that Bahrain has an identity crisis. I think they have an opportunity to set a new identity. >> Absolutely. >> How do you look at that? And how do you guys see that opportunity? How do you talk about it? >> Well, you can't buy innovation. I think we've proven that enough times, that government is no good at making people innovate. But what we can do is make life easier for those who want to innovate. So what we want to do is pave the way. Allow for the opportunities to be there. And then, you know, then it's every man for himself and the free market will compete. We're a very free market oriented entity and government and so all we're going to do is we're going to get out of the way. But we're going to make sure that the path is as clear as we can make it. We are going to make sure that whatever we can do to help, we will. Whether that's bringing somebody like an Amazon here, to have the people here or the Al Waha Fund which is a venture capital fund to fund, which was just launched and which is already invested in. And three or four independently managed >> Yeah. >> Venture capital funds. We feel like these kinds of things, where we're not directly funding but we are encouraging, motivating, helping, that's the role of the government. >> And I also want to just to say to the folks watching, you guys and give you guys some props, you don't just talk it, you walk it. And I think what I noticed in the sessions yesterday and meeting some of the top policy makers and the entrepreneurs was you guys are actually doing the work. >> Oh, we're trying. >> And Teresa Carlson's success in Washington D.C. with Amazon web services really is a testament that if you do the work, the results will pay off. And when Teresa came to Washington DC, Amazon Cloud Computing was like, whoa it'll never work. It is not secure. You know, now they are winning. They are doing extremely well. I've seen the model. Everyone's emulating and moving towards. You guys are doing the work. I see the check boxes. But there's still some work to do. EKYC, other things. >> Yup. >> So congratulations. >> Thank you very much. >> So the question is, what do you got done and what is to do? And what does that mean for people who want to come either work here or collaborate with Bahrain? 'Cause if you check the boxes you're going to be set up. What's the status? >> Well, the first thing we wanted to do was to make sure that the soft infrastructure was there, so we, as a government passed what we call the digital ecosystem package. So that's data protection. That's electronic transactions laws. There's a new law that's in the process that will allow people who are storing data on Amazon's region in Bahrain to bring their own laws with them. So that there are no issues with conflict of laws. >> On the compliance side? >> Exactly. >> Yeah. >> So you know, it's as if they are storing in Saudi or Kuwait. >> Yeah. >> But they are storing here. So these kinds of things, this was the first step. And we've passed a bunch of those laws and we think that they are very important. In addition, as I mentioned, we have the funding situation. We begin to look at that. We hope that with this-- >> That's a hundred million fund of funds. >> That's a hundred million dollars fund to fund. >> Fund to fund, which means that you are going to enable private sector-- >> Correct. >> And professionals to come in. >> Absolutely. People who know what they're doing, who have done it before, in the region and outside of the region, whether it's Silicon Valley or Dubai. They're going to come here and they're going to look at the Bahraini startups, and that gives us the chance to compete on the world stage and shine. And it also gives us the chance to up our game. Once you see the competition, then you can >> Yeah. >> Fix and adjust and do what you need to do. And that's what we want. We want them. We're not going to help spoonfeed them. >> Yeah. >> We're not going to give them charity. This is, you are going to compete because what we dream is that Bahrain will eventually become a global player, and we think we can do that. That's our vision. That's what we want to do, and that's where we are headed. >> So you guys are competitive? >> We have to be. (John laughing) We're a tie, we are the underdog. >> Yeah. >> But sometimes underdogs win. >> You know as I was saying also observing that, we're our first time here with theCUBE in the region. So I was noticing that, you know, we see a lot of events in Dubai. And Dubai is very blown, built, blown up now and is developed. Bahrain feels like Silicon Valley because New York is different than say, the San Francisco Bay area, Silicon Valley. But they don't have to be each other. New York is New York. Hustle, bustle. Silicon Valley is where innovation is. It feels like you guys have that same kind of-- >> We do. >> Vibe here. >> We do, and a rising tide lifts all ships. Where there's good for the Emirates and Saudi, there's also good for Bahrain. It's a region at the end of the day. We're too small to be a player on our own. But one thing I wanted to touch on, you mentioned, that, you know, with the Silicon Valley. The difference between New York and Silicon Valley is everybody knows everybody in Silicon Valley. So if you are an entrepreneur and you have a good idea, you can easily access the people that you need to access. >> Yeah. >> We think Bahrain has that advantage too. And this is-- >> Yeah. >> Clearly demonstrated in the Amazon transaction because you know at the time when we could, we had everyone from His Royal Highness, the Crown Prince on down. If we needed them, they were a phone call away. >> And people are accessible here. They're open. >> They're open. >> They're very friendly. But it's kind of, I won't say no, it's kind of no nonsense in the sense of people just want, get to the point. Right? But it's not in your face like a East Coast New York kind of thing. >> Well, we're not there yet. (John laughing) Give us time. >> All right, so back to the access to capital concept because I think first of all, we're going to open up our doors >> Yes. >> With theCUBE in Silicon Valley for you guys. So very impressive. Consider that an open invitation. But now you're talking about networks. As you built community outside of Bahrain, what are some of the things that you guys are trying to do? What does the research say to do? Is it, is there regions that you see that you need to connect through? Obviously, you want to build some communications with other groups. What's the data show for you guys? What's the sequence of execution? >> So I think what we need to do is we really need to focus on the partners that we have and enhance that relationship. But also we need to look a little bit deeper. So I think India and China are areas of interest for us as well because they are interested in this part of the world, and we need to improve our relationship with Silicon Valley. Not just giving them money. >> Yeah. >> Because everyone wants to give Silicon valley money. But we want to really learn-- >> Yeah. >> And understand what they have done, why it's worked there, why it doesn't work elsewhere, and apply some of those lessons here. >> And bring some collaborations, certainly. >> Absolutely. >> Well, people are leaving Silicon Valley and I know that most startups and growing companies have engineering teams all over the world so it's a global economy. >> Absolutely. >> Final question for you as we wrap up. What is going to attract, folks you are, or, let me rephrase that. What should companies know about Bahrain if they want to engage with you guys here and work with you, or domicile here and create a group here? >> Well first of all, they should know that they don't need to involve anyone else because they can come in and set up on their own. 100% foreign ownership is something that we have here. Where it's a very liberal economy. It's a great place to live. and that sounds facetious but it's actually really important because talent is the crucial component of every success for these companies. And people like to live here. People enjoy it. I think you'll find a welcoming environment. You'll find an environment where if you have an issue, you can raise it to the highest level very easily. >> Got it. >> And EDB is here to help with that. >> Well Tala, thank you coming on. >> Thank you. >> Tala Fakhro, Executive Director of the Bahrain Economic Development Board, the EDB. They have a website. You can engage them obviously doing great things. This is the calm before the storm. As Amazon Web Services Region gets up and running, we expect to see a lot of growth and unexpected things. >> Yeah. >> Unexpected, unintended consequences. Be careful what you wish for, Right? >> Well. >> I mean, it's coming. >> It's coming and we're waiting. >> Thanks for joining us. >> Thank you so much. >> I'm John Furrier with theCUBE. You can reach me at @furrier on Twitter. Bringing you all the action here in Bahrain for our exclusive coverage of the Amazon's new region in the area here in Bahrain and through the Middle East. Thanks for watching. Stay with us for more live coverage here at the Ritz Carlton for AWS summit in Bahrain 2018. We'll be right back. (bright music)