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 18^th 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.

Are you Looking to Invest your Hard Earned Money in Bahrain Businesses?

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.