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Marcopolis presents the Bahrain Report focused on the investments, doing business, economy and other topics featuring interviews with key executives and government officials. The sectors under review are industry, telecom, banking sector, ICT, investments and more.
InterviewsApril 26, 2021
Sheikh Salman Bin Isa Al-Khalifa Presents Bahrain International Circuit: The Home of Motorsports in the Middle East
Sheikh Salman Bin Isa Al-Khalifa, Chief Executive at BIC (Bahrain International Circuit)
- Written by Sandra Francisco
- Published: April 26, 2021
Interview with Sheikh Salman Bin Isa Al-Khalifa, Chief Executive at BIC (Bahrain International Circuit)
What has been the status of Bahrain International Circuit in the past year?
We had 148 events in 2020 up to March. In November, we had the two F1 races, which was a big thing for us. We held WEC testing academies. We were busy and because of that and because of Bahrain not being closed, a lot of events and a lot of motorsports testing events came to Bahrain. Bahrain is doing PCR testing on arrival for anyone coming in. Then, you wait for your test results for a few days. So, it worked. This year, over F1, we had 8,300 tests, conducted over the three days and 12 people were positive.
What are the challenges you are facing now to operate?
Obviously, travel is a big element. We have a lot of people coming from Saudi Arabia to Bahrain and the causeway now is shot because Saudi has restrictions. For us, it is a balance. Karting has been open since last August. The problem we face is that we do not know where this pandemic is going and yet people are so afraid to go back to normality. We cannot wait for that to happen. You have to instill that once you are vaccinated or recovered, you have to live your life. You cannot just wear the mask, stay at home, and wait for everything to come back. We worked with the government to be a test model to let us push people out there. Whatever we do is outdoors, you are wearing your own helmet, you are not sharing anything, etc. There were a lot of synergies there for us to start something and now we are slowly moving. We were the first global sporting event venue to allow fans in for Formula One that were vaccinated or recovered. We got about 4,500. The number was a lot less than our usual; however, it is more than anyone did in 2020 in any F1 race. In 2020, when we had our two races, we could have sold tickets but we decided to offer the frontline workers and the heroes those tickets and they showed up because they were vaccinated. There were about 7,000 that showed up. In the purchase tickets we got about 4,500 that showed up in 2021. So, the problem is pulling people back to normality. We have a Ferrari challenge on the 28th which is a regional event where Ferrari brings its clients. Dubai and Kuwait can travel here, but the problem is when they go back they have to quarantine for 10 to 14 days.
You say that you were a kind of test case for the government to say, this is how we can reopen and go back to normal. Do you feel like that was a success?
I think so. For us, when you are testing something, I do not believe in benchmarking everything, especially now. It is a totally different environment and a totally different paradigm of how people live. If the vaccinations continue to go up, it gives the government more confidence to tell people to reopen. I think we did make the right move. Everyone came, they were all vaccinated, and nothing happened and that gives a little confidence.
How are you continuing this?
I have always been passionate about racing and entering the track. When the track was announced I said this is something that I have always wanted to do. If I can only be a test driver that would wake up in the morning, test drive a car, take a shower, go to work, that was my dream.
We have obviously worked very closely with the government. The approach is not to say that it has worked here, open the gates, let's go for it, we are going to be fine. It also depends on your demographics, your events that you have. For example, our drag racing championship, which was running until last weekend, was the final round. That procedure is quite different because these are mechanics and garages working together. That approach was to do a rapid test. They have the scrutiny of their cars and registering their cars, etc., which is a 10 minute process in terms of the logistics. So, while you are waiting for your car to pass regulations, you do a rapid test for your teams. Everyone coming into the venue was rapid tested and there were some people that were positive and they were then transferred according to the government policy outside the racetrack. So, every event needs a different approach. One setup does not fit all. With Formula One, it was very clear that the vaccinated and the recovered were fine. That is clearly being pushed by the government in terms of adding vaccinations. Another advantage that we have in Bahrain is that everything has been transparent from day one. On the Be Aware app or the Ministry of Health Instagram, every day you have the number of cases and you can go historically through that and see what it was every day, how many first jabs, how many second jabs, vaccinated, and how many by percentage. When we started this, the Crown Prince was very clear that the only way you would get over this pandemic is to have the people on your side. You have to have this transparency with everyone to believe that they have to be part of the solution. If I take that into our small sphere of the racetrack, for example, with drag racing we were so worried about introducing these guidelines. However, we realized the people were more than happy to stand in line because it is peace of mind for them and their families. As this goes on, it is normal. I remember three months ago the fear of asking someone to take a test. It is now about understanding how people want to get back to normal and giving them the right information. At the end, it will be consumer confidence: are they comfortable coming and spending their money here? So far, we have been getting good, positive results.
What areas are you pushing currently?
You have to see where the demand is. For example, with the summer coming on, it gets quite hot in Bahrain and so, to race a car is not the best. So, we are focusing on our eSports and events where we are utilizing the facilities, the fiber optics, the fast speed internet that we have. We are a Formula One racetrack and these are requirements for F1. The most recent is the cycling and the running events, elements where people have been locked in or staying at home for so long and yet, they want to exercise but the gyms are closed. This week, we will start a cycling route on the outer track and a running course on the inner track. In the past, as a racetrack, I would have been against this pre COVID. We are a racetrack: they have to have engines and motors. But now, you need to open up and the demand is huge. When we did the cycling a couple of months ago, we had about 100. This was at 5:00 in the morning to 9:00 AM. So, these were people that really wanted to go cycling. Now, because of Ramadan we will move this to the evening. There will be a cost because we put on the lights; however, I think it is important to do these small things that bring people back. We are not going to make a lot of money out of it, but especially from what we know from 2020, this is not the time to look into just pure costs. You need to get the people back in confidence and racing. The second thing is what works best during the timeline. In the summer, we have our eSports. We have an endurance race with the ACO, SRO, Stephane Ratel, etc. We want to keep the image of the track out at the most relevant points.
COVID has actually pushed a lot of companies to find new revenue streams and find new sectors and try something new. They found that they had demand in different places, that they could reach new audiences and new customers. Do you think that this is something that will continue for Bahrain International Circuit post COVID? Has the image of BIC changed for good now?
We have three values at the circuit that we built with the team and this came from them. Whatever we do, let’s do it from the heart and let's do it from the people. Let's ask them. So, I asked two questions: "Why do you show up to work?" and "What is important?". That was it. And the two main responses were pride and passion. They are proud of this place and what it represents and how it shows the image of Bahrain and they are passionate about something within BIC. It is not just Formula One, or drag racing, etc. The third is performance, for me. It is such an easy value to bear in mind. Whatever you do, from today, just use the three P's and do it with that: do it with pride, with passion, and with performance. Then, it made my job easier because I do not have to list what I want them to do. They know their job. But, I want them to do it with a smile when they are proud. We introduced this in 2012. Because of these values, during COVID, when we were asked to help, the team jumped onboard and it was phenomenal. I was so proud of them. In April, when the pandemic was hitting really hard, people could not find ventilators. The government reached out to us for help. I went online and I saw a few open papers from MIT, sent it to my COO, and asked him to run this by the engineering team and see if there was any interest. Three days later, I will never forget, I got a call. They had two basic prototypes they wanted to show me. We could not use medical supplies because you could not find them. So, we had to use blow-off valves from racecars, injectors, etc. We worked on these two proposals, sent them to the Ministry of Health, they went to the test center, and after a week, it was all approved. We produced 200 of them in house, internal, between teams. The second element that I am still proud of and that we are still doing is the test center and vaccination center. Our teams have been running that since April 2020. Now, they are focusing more on vaccines. But, it is the skill set that you have, it is customer orientation, and people that are ready to solve a problem. All of that is our X Factor. The three P's really helped us. The reason we got into these things is that we had those values before and then they just jumped on it. We have so many solutions, so many fun stories. We are engineering the iPads, bringing technology into signing up with your ID, putting it on the computer, and then getting your sticker printed and that was your PCR test. That element changed the ten minute wait to a four minute wait. I am lucky to have the support of the government to give us a chance.
What are the investment opportunities in the sector?
With our parent company of Mumtalakat, we are invested in McLaren. We have invested in Prodrive with David Richards that does the Paris Dakar Rally Team. There is an investment with the NHRA in the US where we have a two time NHRA Champion team from Bahrain, and they are preparing a new car which I am very excited for. In the UK, with the British GT Championship, there is 2 Seas Motorsport and that is another Bahraini team. Obviously, for us, as a venue, it is a different investment because we want our partners to invest in us. We are very proud of our partners. Some of them have been with us since 2004 and some of them are starting this year. I am very proud that team was able to get YK Almoayyed to sponsor us in 2021. We signed a transportation partnership with them which is very exciting because there is so much potential now with them. They are the Ford dealer so we have the new Ford Bronco coming up. I want to take that into the new off road experience and offer things to the people and anyone that will come take part. The third part is BIC and what it offers. We have land next to us where we have Bell Helmets based here at the circuit. Bell is one of the big motorsports helmets manufacturers. They produce all their helmets 500 meters outside the track. Ten drivers in F1 have Bell Helmets and all the other GT racing, etc. That is a very proud partnership that we have with them. We have worked with them since 2005. We signed in 2014 and we built the factory for them. They are producing about 100 helmets a day. I love racing, so I always bother them and I want to know what is new and see the new helmets and the new technology. McLaren is probably the biggest one. We have the Middle East office of McLaren Automotive next to our track and they have all their products there. They have a small museum which brings people in as well. David Richards with Prodrive we signed with this past year. We will start looking into manufacturing products here as well but on a smaller scale. We still need to grow with the exhibition center, with the elements coming here next door, we will build on growing those investments. I am trying to get an understanding of that matrix and see what works.
What inspires you to do what you do?
I have always been passionate about racing and entering the track. When the track was announced I said this is something that I have always wanted to do. If I can only be a test driver that would wake up in the morning, test drive a car, take a shower, go to work, that was my dream. Then, I started working here as Head of PR and Government Affairs. I was a junior and my first job was the Media Center and the podium for F1. I slowly worked my way up to marketing, eventually. Then, you start to build this connection with the people here that are like-minded, passionate, love the sport. The three P's – the pride, passion, performance – were always there. The second thing and the most important drive for me is that it is a double edged sword, because you feel it after we work the week and then our event is on the weekend and then you work the week again and then the event is on the weekend. Pre COVID, we had between 360 to 400 events in a year, more than one event a day. We were utilizing the venue and it is a big place: you have karting that is running every day, you have events such as eSports or Comic Con, IGN. Comic Con is a big event that we do here over three days or five days. Then you see how these people, how this team works so hard and they put in day in and day out, never ask for anything, that puts you in a position that you have to lead this team to do amazing things. When you do that, when you try the ventilator project or the drive through testing and value engineer that and they deliver it, it is just layer on layer on layer. I always say that I am the luckiest Chief Executive in the world. I have a team that has pride, passion, and performance. They do an amazing job. They make Bahrain look good. They make Formula One look good. This is because everything works for them and they are happy. It is quite a unique feeling here.
How do you see yourself in three years' time, the medium term? What do you want to achieve?
I always say everything here is my fault. Something that we have learned from the pandemic is how to take the positives of this. People are more conscious about things that in the past, they knew they were there, but they never looked at. It goes all the way to the emotional side of people. That gives us an opportunity to build a better future, a better place where we can highlight the important things. Motorsports has always been about bringing people together. This is our role from day one: we bring people together, we create that memory. We need to capture that memory better. Now, with social and Instagram, etc., it is a bit too fast. However, those memories that we create should be cherished and should leave something. We want to take the best parts and create that legacy that we want for a better future. I want to always continuously improve the circuit and capture that memory. In three, four years, if we have done that right, we would be left with a more educated, more passionate customer that would come back and grow it to the next level because they have already done that. I want to put these stakes in the ground of what we want to achieve. In 2004 when we started out, no one knew Formula One. I remember a few years later walking around, I saw people carrying different flags – Ferrari but then you saw for Sindia, Renault, etc., with local people. I learned that these things take time. Whenever you are trying to achieve something, you are always in a hurry to achieve more. Three to five years to me is so many years away. I want to achieve this in two or three years. However, what I have done is understand the steps that we need to take. If we find the benefits and the passion that people have and we grow on that, it will only be better. There is exponential growth in these elements when people are educated. I want to expand my role and this is the only way. I will not be able to do what I do today if I do not add stuff and bother more people, take all of this knowledge and make it better, hopefully, and have fun at the same time. I want people to smile, let people leave saying this is a cool place. I think we need more of that. There have been years of these companies that do not have fun. I do not want to be that.
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