Bahrain needs to catch up. Once a leading commercial, aviation and cultural hub, the kingdom is being overtaken by its neighbours and will become a business backwater unless the pace of economic reform quickens.

Its neighbours in Dubai and Qatar are speeding ahead and the tiny kingdom is losing ground in the financial, tourism and industrial sectors to rivals competing for foreign investment in the form of cash and human capital.

Pushing a far-reaching economic agenda, Crown Prince Sheikh Salman bin Hamad al-Khalifa is leading the charge for accelerated change. His goals are ambitious and include economic, judicial, education and healthcare reform, all pursued with the underlying aim of creating jobs for Bahrainis. But unless he can overcome entrenched interests and resistance from the bureaucratic establishment, his initiatives stand little chance of being implemented.

At the heart of the problem is the three-pronged leadership structure of a king, prime minister and crown prince.

The kingdom needs to streamline its decision-making process to ensure that the crown prince can deliver on his promises. The recent inclusion of a majority of the cabinet into the Economic Development Board, which is chaired by Sheikh Salman, is a deft political manoeuvre and a step in the right direction.

The consequence of failure is not just a reduction in regional prominence. Recent protests on the streets of Manama have highlighted the fact that improving the economic lot of Bahrainis is key to domestic political stability.

In addressing the demands of its majority shia population to end economic discrimination and extend political rights, the kingdom could lead the way among its regional peers as an emerging democracy. There have been two rounds of elections to its parliament already.

If its economic agenda can catch up, the kingdom could be one of the most progressive in the region.