Investments need returns
Investments are always made with an eye to make returns from them. And for international investors looking at countries to invest their money in, there are plenty of opportunities.
In the MENA alone, there are countries that have done amazingly well in attracting foreign investments from various sources.
The UAE is an obvious example, a country that has led the figures among countries in the Middle East for how much foreign investment it attracts.
However, it is far from being the only good option in the region. For all of its excellent benefits, there are other countries that might serve your interests better in the MENA, and especially in the GCC.
A country that presents a unique opportunity for investors, is Bahrain, the small island nation in the Arabian/Persian gulf with strong links to major economies in the region and beyond. Bahrain presents a myriad of advantages that helps it attract investors from all over the world, ranging from geographical and cultural to even political and most importantly financial.
Here are 10 facts you need to know before investing in Bahrain:
1. Bahrain allows full foreign ownership in several industries
Bahrain is one of the only countries in the region that allows for full foreign ownership and control of businesses in the country.
It allows full foreign ownership in several important industries, including technology.
Although, in many cases, we do recommend having a local corporate partner that you can rely on to make business happen in the country. A company like Al Wasel Bahrain that has several decades of experience in serving businesses in and around the country would be a wise choice.
2. Bahrain is famous for being expat-friendly
Bahrain has always done well on surveys ranking the best countries in the world for expatriates. It consistently ranks among the top 10, and on a couple of occasions, ranked number one in the world.
The country already has a significant expatriate population, which makes it easier for new ones who wish to start living there.
3. Bahrain has excellent travel infrastructure for businesses to take advantage
Bahrain has excellent travel infrastructure, including the recently opened new terminal at its international airport. The airport’s capacity has been upgraded to a massive 14 million passengers a year.
The new terminal is a sign of Bahrain’s commitment to improving itself as a destination for travellers and investors from around the world.
There are many ways that the new airport terminal is expected to take the country forward, by making it easier for travellers from all over the world to arrive and pass through the country.
4. It is located perfectly to facilitate international trade from Bahrain
Located in the middle of the Persian/Arabia gulf, Bahrain takes full advantage of its proximity to some of the busiest maritime ports in the world.
Bahrain scored very highly for trading across borders in the doing business report. Its ranking is helped by the lower than average cost of export and import.
Bahrain is also connected via road to Saudi Arabia, through the King Fahad Causeway, which has helped strengthen the ties between the two countries.
Bahrain, is, without doubt, one of the best countries in the whole of MENA to conduct trade.
5. Strong trade policies
Bahrain maintains excellent trade relations with countries from all over the world, including other economic powerhouses in the region. It has committed to the WTO and is allied with other countries as part of the GCC.
There is also the benefit of Bahrain having bilateral trade agreements with more than 40 countries, including major economies such as China and India.
Bahrain also has especially strong ties to Saudi Arabia, with the two countries benefiting from this strong relationship over the past decades.
6. Bahrain is a great location for tax
Taxes are a necessary tool used by governments all over the world. But for your business in Bahrain, they are far from being a concern.
There is no tax on personal income in Bahrain, and you can still claim residency while you live here.
Bahrain is even ranked number 1 in the world for paying taxes (for businesses), a massive benefit for any investors who may wish to set up shop in the country.
7. There is plenty of opportunity for leisure in Bahrain for your visits
No, Bahrain is not a particularly large country. But that doesn’t mean you will starve for leisure opportunities while you are in the country.
Bahrain possesses the first Formula 1 Circuit in the region. This is in addition to its international carting circuit, a perfect leisure opportunity for fans of motorsports. Then, there’s the iconic Manama souq, displaying the country’s culture and heritage.
Then there’s the captivating presence of the Tree of Life, a lonely tree in the desert that is a true miracle of life.
To be concise, while the country may be a small one, its list of opportunities to entertain yourselves is not.
8. Bahrain offers a lower cost of living than comparable developed economies
No, we cannot compare Bahrain to emerging economies like Vietnam or Thailand. However, compared to some other countries in the region, Bahrain offers an unusually low cost of living to its residents.
Bahrain’s currency is also one of the most valuable in the world. It is second in value only to neighbouring Kuwait’s Dinar.
What this means is that the income your business earns in Bahrain Dinar will translate to much higher figures in most of the world’s nations.
And that’s not all. The low cost also means it offers a strong candidate for your entry to doing business in the region, especially compared to the other, more expensive countries in the region like the UAE.
Al Wasel has done a deeper analysis of the cost of living in Bahrain and how you can benefit from it.
9. Bahrain has plans in place to transform its economy over the next decade
Bahrain’s goals for 2030 are well-known and the plans and efforts have been in place since as early as 2008. These goals are aligned to the UN Sustainable Development Goals (SDGs), giving further credibility to the country’s efforts to have a strong sustainable economy within the next decade.
With this intended transformation comes opportunities for you to take advantage through your investments into industries that the company is actively promoting, such as tourism or technology.
There are strong actions being taken to improve the strength of Bahrain’s economy over the next decade, as it strives to reach its goals.
10. Bahrain is one of the easiest countries to do business in the region
According to the World Bank Doing Business report for 2019, Bahrain holds an impressive 2nd rank in the MENA region for ease of doing business.
The country finds strong success in vital areas such as starting a business, trading across borders, enforcing contracts and paying taxes. There are also impressive benefits such as the absence of a corporate income tax.
In addition to these facts and reports, Bahrain is a hub of talent from all over the world, giving your business in Bahrain access to the brightest minds to drive it forward. You should also consider these factors before choosing the recruitment firm for your Bahrain business. Your business will benefit from having a good recruitment firm, in Bahrain or otherwise.
These are some of the reasons why Bahrain is considered the perfect gateway to entering into business in MENA.
What should you do next?
Easy. Talk to us. Connect with us. Send us a message.
Learn more about this haven of opportunities and how we can help you take advantage of them.