Bahrain Financial services, communication and tourism

 

Promising components:

Bahrain has all the required components for investment in terms of modern infrastructure and up to date work legislations. The Bahrain’s economic vision for 2030 is rich of opportunities that aim at improving the competitiveness of the economy and creating new job opportunities. The Economic Development Board of Bahrain is the authority in charge of attracting foreign investments as it strives to support initiatives that contribute to the upgrading of the investment climate. The Board focuses its interest on some main sectors that feature comparative advantages like financial services, processing industries, IT and communication, tourism, logistics and transport.

Moreover, the local, Arab and foreign private sectors can benefit from many available opportunities in Bahrain, given that the  government is now implementing several major projects for a total value of $US 32 billion. Among these projects, it is worth mentioning the Line 6 Expansion project of ALBA (Aluminum Bahrain), a new power plant, Bahrain International Airport expansion project and Banagas new gas plant. All these projects would contribute to the ongoing growth of the non-oil sector by a minimum of 3% in 2017.

 

Vital sectors:

-     Financial services: Bahrain is considered a world banking hub thanks to its regulatory laws and legislations that succeeded in attracting more than 400 banks and financial institutions.

-     The Industrial sector: there are more than 10 industrial zones in Bahrain that provide all basic services like roads, electricity, sanitation, water and communication. These projects also benefit from tax exemptions on capitals, raw materials, production inputs as well as low electricity tariffs.

-     Real estate: The alleviation of restrictions on ownership and residency in Bahrain has contributed to more investments being made in the real estate sector that remains a top destination for investments in the Kingdom.

-     Logistics: Bahrain is endowed with several advantages that have encouraged many global companies engaged in logistics business to establish branches therein. Indeed, the Kingdom benefits from a geographical proximity to the Gulf economies that are easily accessible, from modern infrastructure networks of roads as well as sea and air transport lines, preferential and free agreements with many countries around the world, in addition to a zone dedicated to logistics near the Port of Khalifa Ben Selman.

-     Start-ups: In 2017, the “Bahrain Investment Market” was established under the Bahrain Bourse, so as to become an important window for start-ups and entrepreneurs to collect funding and attract investors without any complications or conditions for accessing the main market. Companies aiming at growing their business can also be listed in the market that provides a fast access to funding sources at a lower cost than the main market. This would encompass various sectors, like health, trade, industry and restaurants. Moreover, new companies can be listed at any chosen currency, and this opportunity is not limited to local companies alone but is also available to foreign ones.

-     Information Technology and Communication: Bahrain ranks first in the Arab region and 29^th worldwide in the ITC index, which makes it a central hub for investment in this vital sector.

 

Bahrain: Foreign Direct Investments by the 10 top sectors (US$m)

 

Source: Fdi markets

Major countries investing in Bahrain

Ibid.

Bahrain’s ranking in the World Bank indicators for ease of doing business for 2017 among 190 countries

 

Source: Fdi Markets