5 reasons why you should invest in Bahrain

The Kingdom welcomes investments

To any person looking for investment opportunities, the countries and economies of the middle east present a diverse array of opportunities. There are the more traditional industries like oil and related products, that despite the global shift away from them, still seem to bring in strong returns.

But it is not just oil and other natural resources that countries in the middle east and more specifically, in and around the Arabian Gulf offer. Many of these countries have become increasingly diversified economies, with initiatives in several countries such as Saudi Arabia and Bahrain to strengthen other industries besides oil.

And as these countries continue to grow and attract investments from around the world, the choice becomes harder than ever. In the past, countries like the UAE may have attracted the bulk of foreign investment in the region. However, with long term plans and strategic initiatives, countries like Bahrain now present true alternatives to any investor looking into the middle east.

Why should you invest in Bahrain over, say the more renowned and luxurious places like Dubai, UAE?

Reasons why you should invest in Bahrain

Lower Costs

Bahrain offers lower costs to its residents and businesses. The cost of living in Bahrain is almost 22.5% lower than the neighbouring country of UAE. Perhaps even more significantly, the rent in Manama, Bahrain’s capital city is 69% lower than that of Dubai.

This is a common trend for all costs in Bahrain, for living and for doing business. And this low cost can be a source of competitive advantage for any business competing with businesses from the UAE.

An IT services firm in Bahrain, for example, will enjoy significantly lower business expenses compared to its competitors in Dubai. And since IT is generally an industry that is not too reliant on location, this cost advantage will give the businesses from Bahrain a significant competitive edge. There are other benefits to this lower cost too, which are covered in more detail here.

Bahrain is a hub of global talent

The kingdom has a diverse workforce comprised of people from all over the world. The country has a sizeable expatriate population, along with a highly skilled local workforce.

This diversity gives your business access to valuable perspectives and experiences, which can be a true source of strength. While cities like Dubai does have a comparably diverse workforce, Bahrain is far ahead of others in the region such as KSA and Oman in this regard.

Bahrain is perfect for trading businesses

For any business engaged in international trade, strong infrastructure to facilitate the movement of goods, via sea, land or air, is an absolute necessity. Thankfully, Bahrain excels in all three of these categories.

It has a strong port infrastructure with several ports and container terminals across the country. It is also a short drive away from the neighbouring large country of Saudi Arabia. Then there are the investments that it has made into its airport, with the new terminal promising to significantly upgrade its capacity to serve passengers.

The infrastructure in the country is very well developed and ranks among the best in the country for connectedness to other nations.

There is also the added benefit of it being a member of the GCC, as well as maintaining strong political and economic relationships with most of the world’s economically significant nations. This gives the country an edge over others who do not enjoy such cordial relations with countries such as the USA, India and China.

Bahrain is a beloved haven for expatriate professionals

The country is beloved by expatriates from around the world who have spent time there. It has consistently ranked as the best country in the world for expatriates in surveys conducted in the past few years.

The country is a small island nation that offers a welcoming environment to investors and professionals from around the world, with the presence of friendly locals being a common theme in studies about expatriates in the country. There is also the added benefit of the absence of income tax, which is very attractive for expatriates from most of the world’s nations.

Bahrain has favourable policies for FDI

Bahrain has strong internal and external policies in place to drive foreign investment in the country.

There are governance bodies that formulate policies with the goal of attracting investors from around the world, such as Bahrain EDB. It also has one of the most open markets for business in the GCC, with full foreign ownership allowed in most industries, a rarity in the region.

The country is open to investments and is making sure the investors have a favourable environment to see their gains here.

What should you do if you want to invest in Bahrain?

There are many ways to proceed with investing in Bahrain.

If you are setting up a new business, you can simply proceed with the Bahrain EDB. You also have the option of choosing to work with a local corporate partner who can sponsor your business as well as provide any services you need.

We, at Al Wasel, make business happen in Bahrain. And we have done so with much success for over 30 years.