Bahrain has taken substantial measures to enact reforms and create the most open, favourable business conditions to make this possible. Fortunately, by virtue of its strategic location, Bahrain has the advantage of being an ideal gateway to the Gulf market.
We understand that we have to do what it takes to create the most competitive and business-friendly environment for business.
Bahrain will always focus its efforts on the building of foundations, ahead of the building of landmarks.
It is this commitment to building for a better future that Bahrain has come to be the most mature, well-established business hub in the Gulf, providing the most free, open, liberal, transparent environment for businesses and communities. Bahrain has maintained its position as a globally competitive base for business thanks to its focus on sustainability, skills, and good governance.
Bahrain is committed to the rule of law, free markets, and democratic principles; serving the needs of many; and, above all, ensuring the long-term, future prosperity of its people.
So, why must you make Bahrain your first choice for your MENA business operations?
• Gateway to Middle East; best market access to the growing Gulf economies. Bahrain itself is a thriving, stable but relatively small market. It is, therefore, important for investors to understand that Bahrain is about more than the Bahraini market because Bahrain is the gateway to the Gulf and the best location to develop opportunities in the Middle East, with particularly favourable access to Saudi Arabia. Businesses in Bahrain can take advantage of Bahrain’s market strategic location in the region, excellent transport network and an unspoken but well-understood reputation for cultural neutrality that has led to widespread acceptance by other markets (Singapore’s access to East and Southeast Asia is a comparable example). World-class companies like American Express, BNP Paribas, DHL and Kraft have selected Bahrain as their ideal base for regional operations, from which to access the Middle East market, specifically the Gulf’s stable and growing markets.
Centrally located with excellent connectivity
- Strategically located in the heart of the Middle East with the best market access to growing economies in
the Middle East market. - 45 minute drive to Saudi Arabia, and one hour flight to other Gulf countries.
- Excellent transport infrastructure including the King Fahd causeway to Saudi Arabia and planned Friendship Causeway to Qatar
- A hub for national carrier Gulf Air policies
• Middle East’s freest market; liberal business environment; respect for rule-of-law. Bahrain’s free markets mean that businesses are allowed to operate freely, with minimal red-tape and foreign ownership restrictions. At the same time, Bahrain has a tried-and-tested legal and regulatory environment, which investors can trust to protect their interests in a fair, open and transparent manner. Furthermore, Bahrain has a liberalised labour market. Bahrain’s economy has long been the freest in the Middle East and has steadily improved its ranking worldwide, ranked the 16th, ahead of G7 economies such as Germany, France and Japan, as well as the major developing markets like China and India.
Liberal Business Environment
- Most open and liberal economy in the MENA region and 16th in the world
- Minimal red-tape and foreign ownership restrictions; free movement of capital, profits or dividends
- 100% ownership of foreign business in Bahrain, including assets and real estate
- Equal treatment of domestic and international companies
- The Bahrain Investment Centre A 1-stop business centre for simple, fast and streamlined registration process
• Track record; experience; maturity. Beyond 4,000 years of history as a trading civilisation, Bahrain’s modern international business credentials stretch back several decades, considerably longer than neighbouring markets. Bahrain’s financial services sector has been thriving for nearly 40 years. In contrast, neighbouring financial centres such as the Dubai International Financial Centre (DIFC) which opened in 2004 and the Qatar Financial Centre (QFC) was established in 2005. With these years of experience comes a certain dependability, sustainability and business wisdom which is unique in the Middle East, enabling Bahrain to set the record for Middle East regulations. Bahrain has prudently diversified its economy and carefully tended to its growth, so ensuring that expansion remains steady and sustainable. In these uncertain times, Bahrain’s decision to take the more prudent path of reform - by investing in the future, and not simply trading opportunistically in the present - has proven a wise one.
Secure and stable environment
- Most well established business hub in the Gulf with a strong track record, considered on the best in Middle East regulations
- Respect for rule of law; protection of a tried and tested legal and regulatory environment with a commitment to the highest international standards
- Mature legal and administrative infrastructure
• Open society; highest quality of life. Bahrain is an open, tolerant and welcoming society that has long respected people of all cultures, ethnicities, denominations and genders. Expats living in Bahrain are well-integrated with Bahraini nationals in both professional and social circles. Bahrain also has the richest heritage and culture in the Gulf. Bahrain also has the richest heritage and culture in the Gulf, history that dates back 4000 years. With its transformation from the Dilmun civilization, to the Portuguese reign, to the Islamic era, Bahrain is the home to many ancient ruins, museums, antique book collections and classical Arabic homes. Today, its melting pot society, boutique restaurants, its thriving arts scene and café culture gives Bahrain an authenticity and culture that is unique in the Gulf. Low inflation and sustainable growth also mean that quality of life is among the highest in the region, especially for families. Women in Bahrain were the first in the Gulf to enrol in schools at the same time as men, and today hold high-level positions in business and politics and enjoy fair and equitable social freedoms.
High quality of living at low cost
- Regarded as the most socially liberal state in the Middle East, with a core culture of openness and freedom
- Welcoming and tolerant society that has long respected people of all cultures, ethnicities, denominations and genders; many religious communities present: Muslim, Christian, Jewish, Hindu
- Attractive liberal and multi-cultural living environment with a friendly cosmopolitan lifestyle
- Lower cost of living when compared to major cities in the Gulf
- Bahraini women enjoy complete freedom and have a prominent position in both a social and a professional sense
• Cost competitive; value-oriented. Bahrain offers the best value for money – with the lowest taxes and operating costs for businesses which base their operations in Bahrain. At the same time, Bahrain gives the highest quality of life to employees and their families.
Competitive Costs & Taxes
- Cost competitive and value orientated, with low cost of doing business
- Expatriates can own 100% of their businesses without the need of a local business partner
- Lowest tax jurisdiction in the Gulf, with no corporate or personal income taxes
- Sustained low rate of inflation well below that of other GCC economies
- Ability to access 65 economies through bilateral agreements on trade investment and avoid double taxation
- Freely convertible currency pegged to the US Dollar
• Most educated, skilled Gulf workforce. Quality of growth depends more than anything else on quality of people. And the people of Bahrain are dependable. The Bahraini business sector is supported by the most productive, highly-skilled national work force in the Gulf Cooperation Council (GCC) countries. Bahrainis are five-times more productive than the average GCC National according to the Conference Board Report, and approximately two thirds of the financial services workforce are Bahraini. Tamkeen (formerly the Labour Fund) has already spent $100m to provide over 18,000 Bahraini nationals with sector-specific skills training. The Government has introduced education reforms that will continue to improve education and skills in line with the requirements of the private sector, adopting best practice from some of the world’s most successful educational models. In addition to colleges and universities, there are vocational institutes prepare youth to enter a workforce with a practical skill related to specific trade. Several institutes in Bahrain have been successful in endowing learners with skills that related to tourism, technology and hotel management.
The GCC’s most skilled and talented workforce
- The most sustainable, productive, well-educated and highly skilled workforce in the GCC
- 87% adult literacy rate - among the highest in the region with almost 11% of all government expenditure directed towards education.
- Strong education and health reform agendas