Thursday, 30 June 2016

Investing is Bahrain Opens the Doors to the Middle East Market

According to statistics released by the United Nations Conference on Trade and Development (UNCTAD) in 2014, the total FDI in Bahrain in 2013 was $989 million. As compared to 2012, it was an increase of 11%, which actually outpaced the global increase of 9%. The report also revealed that Bahrain's inward FDI, a sum total of a percentage of 55.3% GDP, 3% nominal GDP and 15.7% gross fixed capital formation is the highest among the GCC countries.

There are many reason for the increase in the inflow of foreign direct investments in the markets of Bahrain. Here are the few reason why investing in Bahrain is a good idea.

Invest in Bahrain's


  • Access to all the Gulf markets: The first and major advantage of investing Bahrain is its location. Situated in the heart of the Gulf market, the nation offers direct access to the Gulf economy that is estimated to be worth $2 trillion by 2020. Saudi Arabia, which is the world's largest oil producer and the biggest economy in the Middle East, is less than an hour away from the capital of Bahrain. Talking about air transport, Bahrain is the hub of Gulf Air, which is the largest airline network in the region, with daily flights to the GCC countries. Since the opening of the Khalifa Bin Salman Port in April 2009, the country has also become a major regional trans-shipment center.

  • Better legal framework: Bahrain is a country with the most liberal business environment in the region. The liberal features in the country include no corporate and personal income tax, no wealth tax on capital, just a few indirect taxes, such as a 10% municipal tax on tents, etc. The government offers 100% foreign ownerships on business in most sectors. To add to this, the telecommunication sector is also the most liberal one in the sector putting the nation at the 18th rank in the world in the most open economy category.

  • Competitive cost: The cost of doing business in the country is approximately 40% less than that of doing business in Dubai and Qatar. The privatization of the utility sector, combined with the subsidies, makes the cost of electricity, gas and other utilities relatively cheaper than other countries, thereby reducing the overall cost of living and doing business.


  • Skilled workforce: Again cost competitive and skilled bi-lingual workforce in the country will help a great deal in reducing the expatriate expenditure and thereby helping in better cost efficiency as well. The large number of English people makes it easier to run a business here for expats.