Bahrain and its location-based strengths: Why it matters to your business

The Kingdom gains from its location

Nations, throughout history, have managed to find ways to prosper on the back of a diverse array of things.

Many have prospered due to access to water, especially in ancient times. Civilizations have risen and fallen along the banks of major rivers around the world. In the modern-day, the most resilient nations draw their strength, not from a singular source, but a diverse and ever-growing array of advantages.

Every nation does its best when it plays to its strengths. For Iceland, its strength lies in its unique geographic features and terrain. For the Maldives, it is the surrounding ocean and pristine beaches in the tropics. For Saudi Arabia, it is the vast oil deposits. 

For Bahrain, one key strength is its location.

The Arabian Gulf continues to be one of the busiest marine routes in the world. Despite the recent economic downturn with the pandemic, international trade continues to grow. 

As marine trade and transport grow, the demand and relevance of hubs like Singapore and Dubai grow as well. Unlike the country that it belongs to, much of the wealth of the Emirate of Dubai comes from its position as a hub of activity in the ME. It has become a favourite of investors and professionals from around the world.

Bahrain has the opportunity as well as the resources, to do something similar.

As the city has grown, Dubai has become inaccessible to many, due to rising costs and a highly competitive business environment. This has caused many businesses and investors to look elsewhere for better, cheaper and ultimately, more conducive-to-business countries in the region. This is where Bahrain’s strengths become increasingly pronounced.

Bahrain does rely on oil and refineries for much of its wealth. However, its decision to diversify its economy with a sustainable vision in place means there is now, more reason than ever to present itself as a true alternative to entering the middle east. And the country has certainly taken the steps to do so, as we will discuss here.

What are Bahrain’s location-based advantages?

The biggest location-based advantage for Bahrain is its placement in the middle of the Arabian Gulf. 

As it is located in one of the busiest and most important maritime sea routes in the world, it is strategically placed to gain a competitive advantage. As more and more countries compete for investment from international investors, Bahrain’s placement in the Gulf is a massive strength. 

With its ports, it is well equipped to make use of this strength by providing the necessary infrastructure for trading businesses in the region. 

With its geographic placement, comes another significant advantage – its proximity to large economic powerhouses in the region.

Bahrain is, by no means, a large economic powerhouse. That title belongs to the other, more populous countries in the region such as the Kingdom of Saudi Arabia and the UAE. And since they have such strong economies, the competition, as well as the barriers to entry, tend to be greater.

This is where Bahrain gains its competitive advantage. Located in close proximity to the aforementioned nations as well as others like Kuwait, Qatar and Oman, Bahrain presents an easier and more cost-efficient entry point into the GCC market, which is expected to become the world’s sixth-largest combined market by 2030.

There is also the presence of pristine beaches throughout the island nation. It presents an unusually close location for vacationers from the neighbouring countries – expatriates and locals alike. The country does take advantage of this strength, with plans to improve the countries tourism prospects being part of its diversifying efforts.

The country intends to make tourism and travel one of its main strengths, evidenced by the investments in the new airport terminal. As such, businesses and entrepreneurs have the opportunity to make smart investments in these areas, making use of the initiatives in them.

How you can make use of these strengths for business in Bahrain

The governance of the country has plans in action to take advantage of the many location-specific strengths of Bahrain. Likewise, investors, companies and professionals from within and outside the region can look to do the same.

Investors are presented with a country that has a burgeoning tourism industry, only now touching upon its previously untapped potential. They can look to invest in companies that make use of its beautiful geographic and cultural characteristics. Investments in international trade and other similar businesses are also likely to flourish here, as a result of its excellent infrastructure that complements the location.

Companies, whether they are already in Bahrain or otherwise, can look to use their strengths to their benefit. Using Bahrain instead of other alternatives for trading allows companies to potentially save large amounts. There are also the companies in tourism and travel who can collaborate to use the location to their gain.

Then there is the case of professionals from around the world. Digital nomads, especially if they need to stay close to Europe or the Middle East, can make use of Bahrain’s proximity to major economies and companies. With the location, the time zone and the beautiful beaches the island nation has to offer, professionals can move to a country that has often been a favourite of expatriates.

Making optimal use of these strengths for your Bahrain company

While it would be tempting to dive head-first toward the opportunities you find, in Bahrain, it certainly pays to have a local partner.

For any service that your business may require, be it consulting, trading, commercial services, HR-related services or even sponsoring, we are here to make it happen. With our experience and excellence spanning over 3 decades, we are well equipped to meet all your business needs, with consistency and trust.

Contact us today and let’s discuss how we can work together.