Foreign Direct Investment in Bahrain
crossed the $1 billion mark at the end of 2015. This is a country driven
towards development, supported by initiatives from its government. It has
undertaken many reforms in recent years to ensure more favorable conditions and
working environment for investors. Its location on the world map gives it the
advantage of becoming a hub for the trillion-dollar Gulf market. It was ranked
as the fifth-most FDI attractive country in the Middle East by fDi
Intelligence, a division of the Financial Times. The government's efforts to
improve competitiveness within the country have been successful in attracting
foreign investors. It is in fact the leader among the Gulf countries in terms
of the effectiveness of its FDI strategy. It is the commitment of the country
towards a brighter future that makes investing
in Bahrain a smart option.
Why
Invest in Bahrain?
- Gulf Market:
Bahrain has the largest regional network in the Gulf of Persia and the hub
of the airlines in the region. It has a world class international airport
that operates regular flights to top markets in this region. Qatar is just
25-minutes away, while it takes less than an hour to reach Abu Dhabi and
Muscat by air. Saudi Arabia, the world's largest oil producer, is less
than an hour away by road.
- Legal Framework:
The nation offers the most business friendly environment in the Gulf
region. The population of the country is very skilled and has a very high
number of English speaking people, which can be a big asset to global
businesses. It also has the most attractive tax regime in the region. It
allows 100% ownership of business and real estate in most sectors and has
no 'free zone' restrictions.
- Cost Competitive: The
cost of running a business in Bahrain is almost 40% lower than that in
Saudi Arabia and Qatar. The subsidies in the utilities sector mean that
electricity and gas are available at lower prices too. The cost of living
is also much more reasonable than the other Middle Eastern countries.
Where
to Invest?
If you are planning on investing in Bahrain, these are the best
sectors for you:
- Manufacturing:
The Gulf region as a whole is continuously developing in terms of
infrastructure. Bahrain being at the heart of this region, is an ideal
base to meet the needs of manufacturing goods companies. You can do
duty-free trade, since it is a member of the GCC common market.
- Financial Services:
Services like banking and insurance are good investment options in the
country. The Central Bank of Bahrain (CBB) is the single regulatory body
for all the banking and financial activities in the country.
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