Advantages

In an effort to attract and encourage foreign investment, Bahrain has created a remarkable economic environment that, when considered with its geographic location, is exceptionally pro-business. Hundreds of international corporations, including many in the Global 500, have chosen Bahrain as their base of operations in the Middle East for this reason.

The specific efforts implemented are numerous:

Tax Free Environment
Bahrain has a highly favorable tax environment, with no taxes on personal or corporate income, and no withholding or VAT.

Duty-Free Imports
Raw materials, imported semi-finished commodities, imports required for development projects, machinery for manufacturing, and goods imported for re-export are all exempt from duties in Bahrain.

100% Foreign Ownership Of Companies
International investors and companies are guaranteed 100% ownership of their interests in sectors including:

Technology

• Technical services
• Information technology
  1. Cable
  2. Telecommunications services

Tourism

• Hotels
• Restaurants
• Shopping centers
• Travel agencies
• Real estate
• Museums
• Tourism projects

Healthcare

• Private doctors and dentists
• Health insurance
• Hospitals and clinics
• Medical equipment

Education and Training

• Private primary and secondary schools
• Colleges and universities
• Vocational training

Manufacturing Services

• Re-assembly, packaging and shipping
• Warehousing
• Support services

Business Services

• Project development
• Liaison and monitoring of distribution in the region
• Consultancy services
• International couriers
• Marketing, publication, promotion and advertisement
• Specialized exhibition organizers
• Conference and event services

Industrial Services

• Support services
• Workshops
• Maintenance, reconditioning and repairing
• Fabrication and galvanization of steel
• Industrial instruments

Other

• Scientific laboratories

100% Ownership of Land
Bahrain has taken the pioneering move to allow foreign investors 100% ownership of land in predetermined areas. Investors setting up their operations in Bahrain may choose to lease government land through the Ministry of Finance and National Economy, or to purchase land in one of several designated sites open to foreign ownership. International investors may also own residential property in a number of tourist developments.

100% Repatriation of Capital
Bahrain does not restrict capital repatriation, guaranteeing full financial transferability of profits and dividends.

'Fast-track' Registration
To simplify the bureaucratic process of setting up a new company, the Bahraini government offers a 'fast track' commercial registration procedure for qualifying companies.

Easy Access To Visas
Except passport holders of the GCC States (Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), visas are required for all visitors to Bahrain—regardless of purpose. Visitors holding valid resident permits from Saudi Arabia can receive a free 2-week visa. While required, visas are available and usually not difficult to obtain.

Foreign nationals may enter Bahrain with any of the following:

• Tourist visa (for individuals or groups)
• 72-hour visa
• 7-day visa
• Visit visa
• Business visa
• Family visa
• Dependent visa
• Work visa

A local sponsor must sign extension applications.

Skilled, Cost-Effective Labor
Labor costs are one-third those of industrial countries. Highly trained, bilingual, non-transient and versatile, Bahraini citizens represent a highly competitive workforce.

Technological Advancement
Bahrain is one of the most technologically advanced countries in the region. The country's telecommunications provider, Batelco, has built an extensive, fully digitized network. Today, consumers enjoy ISDN, ATM, LANConnect, International Direct Dialing to more than 200 countries, and mobile fax and data service through the GSM network.

Physical Infrastructure
Bahrain also has well-developed utilities and road networks. There are three major desalination plants and all tap water is desalinated. The whole country has direct access to electricity. The road network, under constant upgrade, connects all of the areas on the main island.

Legal System and Dispute Resolution
Bahrain has a well-established legal framework in place protect international investor.

• Limited liability sole proprietorship
• Simplified procedures that allow companies to change their legal form
• Articles relating to establishment and regulation of holding companies
• Establishment of joint stock companies
• The increase of capital requirements for Limited Liability and Joint Stock companies.

The Intellectual Property laws cover trademarks, patents, designs and copyrights.

The GCC Commercial Arbitration Center, which was established in 1995, provides the private sectors in the GCC countries with a quick mechanism by which commercial disputes can be resolved. In addition, the Bahrain Chamber of Commerce and Industry (BCCI) can assist in the settlement of trade disputes in the private sector.

Numerous Investment Alternatives
Investors have a range of investment vehicles by which they can do business in Bahrain, including:

• Limited Liability Company (WLL)
• Branch Office
• Regional Office
• Public Joint Stock Company
• Closed Joint Stock Company
• Sole Proprietorship
• Holding Company

Ample and Available Financing
In addition to credit from banks and financial institutions in Bahrain, two additional financing options are available: the Bahrain Stock Exchange, which offers equity financing, and the Bahrain Development Bank (BDB). BDB is Bahrain's primary financial development institution and was established in 1992 to promote and foster investment in industrial, commercial and business service sectors. The BDB provides financing arrangements to small and medium size projects, including:

• Short and long-term composite loans;
• Venture capital in the form of equity participation;
• Arrangement of equipment leases;
• Financing of working capital for raw materials;
• Export financing for goods manufactured in Bahrain.

The BDB maintains a maximum loan exposure of BD 500,000 per project.

The BDB is further able to offer:

• Attractive interest rates
• Flexible grace periods (of up to 3 years)
• Flexible payment terms
• Highly competitive fee arrangements.

The BDB provides services to investors of any nationality, but demands that they have good credit. Eligible projects must be registered and licensed in accordance Bahraini law. Economic viability needs to be supported by an independent, recognized consulting house.