Why Bahrain attracts international trade
Businesses from all around the world have continually depended on the Arabian Gulf and the countries that lie beside (and on) it. The region has prospered by fostering trade across multiple continents. The country has been the economic and trade centre in the Arabian peninsula for the better part of the past few millennia.
It is not just in the history books that Bahrain excels in trade. The country continues to be an important hub for traders from the region and from other continents including Africa and Asia. The country maintains strong trade relations with several countries including the UAE, China, USA, Saudi Arabia, and more.
There are several factors that contribute to the country’s success as a trade hub in the region. These factors vary, and each one contributes to improving the attractiveness of Bahrain and its ports as a destination for investors and businesses who wish to trade in the GCC and other nearby regions. The country acts as a perfect gateway to trade with other countries in the region including the likes of UAE which has one of the most diversified economies in the GCC and Saudi Arabia, the single largest economy in the region.
In this article, we will refer to some of the factors that make Bahrain an attractive option to traders from all around the world.
Infrastructure
The country benefits from the port of Mina Salman, a highly modernized port in the North-Eastern part of the country. The port is one of the largest in the region and has a significant storage infrastructure that supports all those who wish to use it for trade. While the country does not have the ‘free zone’ system used by countries like the neighbouring UAE, it has a lower barrier to entry designed to attract investors and businesses.
The country also has excellent international airports, including the recently opened new terminal. The airport now has the capacity to serve a staggering 14 million passengers a year. The new terminal shows the countries commitment in improving its travel and transport infrastructure, further underlining the importance of international trade to the economy. It also shows why the country is well equipped to become the premier hub of international trade in the region.
Trade Policies
The country maintains strong trade relations with several economic powerhouses within and outside the region. With its commitment to the WTO and the alliance with other states in the GCC, the country has perfectly placed policies to enable international trade.
The country has bilateral trade agreements with more than 40 countries including the likes of China and India in addition to its strong ties to the Gulf states in the GCC. Together, there is a strong network of trade agreements that ensure international trade between companies in Bahrain and these strategically important countries happen as smoothly as possible.
Geographic Location
The geographic placement could be the make-or-break factor for many countries when it comes to prosperity through trade. Landlocked countries often tend to rely on their neighbours for much of their trade, adding further risk to businesses there.
Being an island nation located on the Persian Gulf, however, this is not an issue for Bahrain. The country is blessed with a strategically important location in close proximity to many of the major economies in the region and in the world. There is direct access via road to Saudi Arabia through the King Fahad Causeway, links to countries like UAE and Kuwait through several flights a day and an impressively long causeway to Qatar under construction.
For businesses that intend to trade with other countries in the GCC, Bahrain offers a perfect point of entry. With favourable governmental policies, excellent infrastructure and close links to many of the region’s other countries, Bahrain wins out by offering a lower barrier to entry than most others.
The country also received excellent scores for trading across borders in this report measuring ease of doing business. It is ranked especially well for the lower than average cost of export and import.
There is also an excellent pool of talent available in the country, comprised of people from several different nations and backgrounds. It is a truly international country and one that is waiting to serve all your business needs
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