Bahrain is looking to economic diversification in the long term, it was revealed on Friday.

Crown Prince, Deputy Supreme Commander and Economic Development Board Chairman Shaikh Salman bin Hamad Al Khalifa was speaking at the Waseda University in Japan on 'The Middle East: From the Inside Looking Out', said a report in our sister publication, the Gulf Daily News.

'In contrast to the wider global picture, the IMF predicts that the economies of Bahrain and the GCC will continue to grow at an average of around seven per cent in the next year,' the Crown Prince said.

'We do not take this good fortune lightly. We believe it is a heartening prospect not just for us in the region, but for all of those we do business with, whichever nation they may hail from.

Shaikh Salman said that the Gulf has been blessed with resources provided by its mineral wealth.

He acknowledged that oil has played a central role in spurring GCC growth.

'But, I must stress that we are learning from the mistakes of the past. We know that we cannot afford to be at the mercy of hydrocarbon booms and busts,' he said.

'Under the leadership of His Majesty King Hamad, I can assure you that Bahrain is now looking firmly to the long term - to economic diversification, to stability and security.

'To our human rather than natural resources, we are seeking further growth based not on oil, but on firm foundations rooted in real productivity gains, real economic growth, real improvements in education, and real skills in our labour force.

'In the last few years, Bahrain has made changes in the way we operate as a nation,' he said.

'In addition to ushering in comprehensive political reform that established a bicameral parliament and independent judiciary, His Majesty has tasked us to develop a clear economic vision that will enable us to move forward driving productivity and building on the opportunities before us.

'We will become an increasingly vibrant business and financial centre investing in our people and learning from the experiences of others while never losing sight of what makes us special - our Islamic principles, our traditions and an open and tolerant approach that respects and welcomes people of all cultures, ethnicities, and denominations to our shores,' he said.

Over the long term, Bahrain's vision is to create sustainable growth and investing to build lasting success that is not dependent on the ups and downs of energy prices, Shaikh Salman said.

'All of you know about the major problems of the Middle East. We have sadly been through some testing times with the recent wars and regional conflicts. However, the GCC members have fortunately been insulated from the worst of these troubles and in circumstances that are sometimes far from ideal, have managed to grow and prosper.

'In line with our vision, we have already implemented wide-reaching and effective reforms across all areas of our economy - reducing red tape and making it easier and quicker to set businesses, enhancing our infrastructure, making sweeping changes to our education system to improve standards, and to equip our young people with the skills they need to succeed in the job market.

The Crown Prince said that Bahrain is already known as the home of the most skilled national workforce in the GCC, but the kingdom is keen to further develop this competitive edge.

'Our Labour Fund will invest hundreds of millions of dollars over the next 10 years to provide Bahraini nationals with sector-specific skills training.

'For what is the purpose of reforms if not to improve lives? Bahrain's true wealth is not monetary or mineral - it is in our people.

'This is what we are investing in. This is why we are making changes. We are striving for individual and community fulfillment, enab