The Kingdom invests in air travel
Aviation is perhaps the only worldwide transportation network there is today.
While alternative methods like marine travel and roads exist, air travel is perhaps the most important method of international travel there is today. And for good reason too.
It is unmatched in speed and efficiency, and more often than not, has the others beat for cost as well. And this is why strong infrastructure to support air travel has become crucial to the development of the economy of any country.
Of course, seaports are still very important, especially when there’s the movement of goods involved. But for a country that relies more on the service sector than manufacturing, air travel infrastructure is, without doubt, the most important.
For the small island nation that it is, airports are very important to the economic development of Bahrain. And the country does recognise this, evidenced by the massive investments into a new terminal at its international airport.
But how will the country benefit from having a better airport? Continue reading to find out.
How Bahrain Airport’s new terminal will help its economy
Bahrain is not an economic powerhouse, unlike its larger and more gifted (in natural resources) like the UAE and KSA.
However, it is not without its own set of strengths. The country has found much success in several industries besides oil, with several successful financial institutions and technology companies basing their regional operations in the country.
The country excels in attracting investments, with steady performance in FDI recorded over the past few years. It does so on the back of a wide range of factors, ranging from its welcoming policies, geographical strength, warm environment for expatriates and so on. While it lacks the vast natural resources that other countries in the region were gifted with, it has found success nonetheless.
The new airport terminal is part of the country’s intentions to diversify and strengthen its economy, with plans and goals in place to be achieved before the year 2030.
Construction on the new terminal began as early as 2016, and was completed and opened to the public in early 2021.
It raises the capacity of the airport to a massive 14 million passengers per year, a factor that will serve the country well as it strengthens its efforts to position itself as MENAs premier tourism destination. And it is not just tourism that stands to benefit from the improved airport infrastructure either.
Businesses that operate in the country will, regardless of their industry, stand to benefit from a world-class airport infrastructure in a place that is viewed as an excellent hub for international talent.
Benefits the new airport terminal will bring to Bahrain’s economy and residents
Benefits to residents of Bahrain
The new terminal is four times larger than the old one that had been in use until now. And with this larger footprint, comes the opportunity to add several amenities that make the airport experience more pleasant and enjoyable for international travellers.
There are now new features to the airport like massive lounges, significantly larger retail area for duty-free shops, children’s area, among others.
All these factors together, present a better experience for international travellers from all around the world who pass through or enter the country through the new terminal.
But the factor that could have the most significant impact on the country’s economy is the increased capacity to serve passengers.
Benefits to Bahrain’s economy
As the country continues to make investments and design policies and regulations to promote certain industries, improved air travel infrastructure is doubly important. Tourism is very much a priority for the country in its efforts to diversify, and for international tourists to arrive, the airport is a necessity,
The advancements in the airport’s facilities and capacity will help improve the country’s prospects of attracting tourists from all over the world. Likewise, they will also serve the needs of its growing population of expatriate professionals and investors as well.
There is also the more direct impact that a larger terminal will have on the country’s citizens and residents. With a larger facility serving more people, comes employment opportunities. Over 5 million direct jobs are generated by the air transport industry around the world. The new terminal can have a direct impact on increased employment among residents of the country.
In the longer term, the country’s investments into air travel infrastructure will result in an improved supply chain for its businesses to take advantage of. It can even act as a catalyst for improving innovation in the country, as it becomes even more accessible to brilliant minds from all over the world to innovate as well as educate the local population.
Benefits to companies in Bahrain
There is also the fact that 70% of businesses report that serving a bigger market is a key benefit to using air travel services. This is exaggerated by the fact that 25% of all companies’ sales are reliant on air transport. For companies that operate out of Bahrain and looking to do business with companies and organisations from larger markets in the region, the improved terminal presents a significant advantage that wasn’t there before.
Whether they are a consulting firm, or a tech company, businesses from Bahrain stand to benefit from the improved air travel infrastructure that is now available to them for use.
What should you do next to start a business in Bahrain?
It isn’t just the airport that Bahrain has to attract investors. It presents a unique location in the Arabian Gulf that acts as an affordable, yet strong entry point to the larger $1.5 Trillion economies of MENA.
For any company that wishes to enter Bahrain for business, the country presents its unique set of advantages that ensure that your decision to invest here is a smart one.
Of course, you do have the option of entering the country alone in many industries. However, if it is a new market for your business, it would be wise to choose to move forward with the backing and support of a local corporate partner.
A corporate partner that can make business happen in Bahrain, and has a good track record of doing so.
We, at Al Wasel, have been doing exactly that, with our wide range of corporate services. Contact us now, and take your most important step into investing and doing business in Bahrain.
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