The Kingdom is affordable
The cost of living is always an important factor in the life of an individual.
Whether you are a professional or an entrepreneur or even an investor, the cost of living in any particular country or city does have the power to influence your decisions. The distance between your income and the cost of living can greatly influence the standard of living you enjoy.
Countries with a high cost of living do have their own advantages. A high cost of living can often be associated with a stronger economy, with strong opportunities for career and business.
However, it has its own disadvantages as well, with expensive housing being at the top of the list. City-states like Singapore have a notoriously high cost of living exacerbated by the high rents and property prices.
As professionals or entrepreneurs seeking international opportunities, it would be wise to look for countries and cities that do not find themselves on a ‘most expensive places in the world’ list.
Any country that can offer a high standard of living with strong infrastructure, while not being astronomically expensive has a distinct advantage. Bahrain, the little island nation in the middle of the Arabian Gulf and surrounded by economic powerhouses like the UAE and KSA, is one such country.
So what are the factors that make up the cost of living in the country? And how does it compare to its neighbours like the UAE?
Cost of living in Bahrain – numbers
One of the largest expenses an expatriate in Bahrain will incur is rent for their housing. The good news is, rent in Bahrain is 22.5% lower than the neighbouring country of UAE on average. This difference, while significant, isn’t shockingly large.
However, when we compare the two largest cities in these two countries, the differences are more pronounced.
Bahrain is not an alternative to the small, less economically significant cities in the relatively large country of UAE. What it is presenting itself as an alternative for through its many initiatives, is the city of Dubai. This is why the comparison of cost of living between Dubai and Manama, Bahrain’s capital city is more relevant.
And there is much good news for those interested in Bahrain here.
Rent prices in Manama are 69% lower than that of Dubai. This is a massive difference that completely changes the living standards of people residing in these two cities.
Since rent is one of the largest expenses incurred by most expatriate residents in these cities, the lower rent in Manama will go a long way toward increasing your purchasing power as well as the ability to save and invest.
The theme of lower expenses continues in other areas as well, with restaurant prices being 40% lower than that of Dubai and groceries being 11% cheaper.
Also, compared to the UAE, residents in Bahrain prices that are 56% lower for high-speed internet.
All of these factors that make up the cost of living, taken together, means that your income will go a lot further in Manama and the rest of Bahrain than it would in Dubai, UAE.
How you can benefit from Bahran’s cost of living
If you are a professional working and living in Bahrain, you will enjoy lower rents and lower prices for most commodities. The best part about the lower cost is that it comes with little downside to the living standards in the country.
The infrastructure in Bahrain is largely comparable to what’s present in its neighbours. The road network is well developed throughout the country, including the King Fahad Causeway which connects Bahrain to Saudi Arabia.
Bahrain is also implementing plans to build a metro rail network spanning the country’s major urban areas. There is also the presence of a strong infrastructure for international travel and trade through the country’s air and seaports.
The country has always been a favourite of expatriates from around the world for a variety of reasons. It is also well placed to find significant growth in many industries like tourism.
How companies in Bahrain can benefit from the cost of living
Bahrain’s low cost of living is one of the reasons why investors and entrepreneurs in industries that Bahrain is trying to promote, like tourism, are in the right position to take advantage. While the country already has several strengths, location-based and otherwise, the low cost of living can be used by your business to gain a competitive advantage.
Being able to attract strong talent from around the world while incurring costs lower than the alternatives like Dubai is a significant competitive advantage for any business trying to compete in the GCC.
The low cost of living reduces the expenses your business may incur like property rents, internet costs, allowances given to the workforce and many more.
For any service-based business or one that trades internationally, these lower costs are a significant source of potential strength. Lower costs will help improve your margins and drive success.
What should you business in Bahrain do next?
Are you looking to invest or set up your career in the Middle East?
There are many countries and cities presenting opportunities for you to do so. It is easy to be tempted by the luxurious images propagated through social media about many of the cities in the region.
But your decision must not be driven by promises of luxury. Instead, letting the decision be driven by practical measures and logic is sure to drive you towards Bahrain.
The country offers a practical and affordable point of entry to the GCC and MENA as a whole.
With other strengths enjoyed by the country like strong international trade relations, the benefits it offers to important industries like tourism and technology, and the plan in place to diversify and strengthen its economy beyond oil, you would be making the right choice to invest in Bahrain.
How can you proceed with starting a new business in Bahrain?
There are many official resources available online to guide you in the process of investing in a business or in your career in the country of Bahrain. It is key that you inform yourselves as well as possible and be prepared to navigate the country’s business landscape.
Whether you are setting up a new company in the country, or simply want to engage in a few projects, having a local partner is always a source of strength.
With over 3 decades of business success serving MNCs in projects worth well over $100M, Al Wasel Group is well equipped to serve all your business needs – from sponsoring to trading to sourcing human resources and more.
We make business happen in Bahrain, and we are very good at it. Contact us now, and take the best route towards business success in Bahrain.