Bahrain
Bahrain is an Arabic word meaning “Two Seas” and refers to the two sources of water surrounding the islands, fresh water springs and the surrounding seas. Bahrain is an archipelago of 33 small islands and enjoys a strategic location in the Arabian Gulf midway between the Qatar peninsula and Saudi Arabia.
It is connected to Saudi Arabia by a 25km causeway. Bahrain is divided into five provisions : Capital, Central, Muharraq, Northern and Southern. Apart from its booming financial services sector, Bahrain main products are aluminium, crude and refined oil, petrochemicals and gas.
Bahrain has the most liberalised economy in the Gulf Cooperation Council (GCC). The 2015 Index of Economic Freedom ranked Bahrain as having the freest economy in the Middle East and 18th freest in the world. Bahrain is an important partner and base for UK companies in the Gulf given its position as a major trading hub in the region.
There are over 500 active UK commercial agencies and over 90 branches of British companies in Bahrain. In addition, over 350 Bahraini companies have UK partners. British businesses already operating in Bahrain include HSBC, Standard Chartered, Atkins, National Express and Ordnance Survey.
Benefits for UK businesses exporting to Bahrain include:
Strengths of the market:
Challenges
Bahrain is a relatively easy place to do business. However, there are a number of challenges including:
British goods and services are well regarded for quality, but price is normally a determining factor of sale.
Economic growth
Bahrain has grown steadily over the past few years with a 5-year compound growth rate of 3.4%. The economic outlook remains largely positive.
Bahrain’s economy is relatively small in comparison to other GCC countries and is the most diversified in the Gulf. It’s now one of the acknowledged banking, financial services, and human resource development and training centres of the Gulf. Growth in Bahrain’s economy comes primarily from the oil sector which is also the largest contributor to government revenues. The oil and gas sector in 2014 accounted for:
The government has an increased focus on economic diversification as part of the Economic Vision 2030 goals. It aims to enhance private sector growth and non-oil industries have been steadily growing over recent years.
Bahrain has undergone a surge in infrastructure development in recent years, following allocation of funds from the GCC Development Programme. This aims to improve public services and address socio-economic issues.
The main contributors to GDP apart from oil and gas are:
Other positive measures for growth include:
Source : GOV.UK
It is connected to Saudi Arabia by a 25km causeway. Bahrain is divided into five provisions : Capital, Central, Muharraq, Northern and Southern. Apart from its booming financial services sector, Bahrain main products are aluminium, crude and refined oil, petrochemicals and gas.
Bahrain has the most liberalised economy in the Gulf Cooperation Council (GCC). The 2015 Index of Economic Freedom ranked Bahrain as having the freest economy in the Middle East and 18th freest in the world. Bahrain is an important partner and base for UK companies in the Gulf given its position as a major trading hub in the region.
There are over 500 active UK commercial agencies and over 90 branches of British companies in Bahrain. In addition, over 350 Bahraini companies have UK partners. British businesses already operating in Bahrain include HSBC, Standard Chartered, Atkins, National Express and Ordnance Survey.
Benefits for UK businesses exporting to Bahrain include:
- Good communication links
- Direct access into Saudi Arabia via causeway
- Most liberal tax regime in the Gulf
- 100% foreign ownership of business assets and real estate allowed with no ‘free-zone’ restrictions
Strengths of the market:
- Competitive operational costs
- Well regulated financial services sector
- Advanced logistics services
- Dedicated industrial zones
- Educated and skilled local workforce
- High quality of life for foreign residents recorded by HSBC Expat Explorer Survey
Challenges
Bahrain is a relatively easy place to do business. However, there are a number of challenges including:
- Delays in payment
- Bureaucracy within government agencies, especially for getting licenses
- Need to employ a certain quota of Bahrainis to comply with Bahrainisation rules, which aim to improve local employment prospects and reduce Reliance on imported labour
- Government documentation in Arabic
British goods and services are well regarded for quality, but price is normally a determining factor of sale.
Economic growth
Bahrain has grown steadily over the past few years with a 5-year compound growth rate of 3.4%. The economic outlook remains largely positive.
Bahrain’s economy is relatively small in comparison to other GCC countries and is the most diversified in the Gulf. It’s now one of the acknowledged banking, financial services, and human resource development and training centres of the Gulf. Growth in Bahrain’s economy comes primarily from the oil sector which is also the largest contributor to government revenues. The oil and gas sector in 2014 accounted for:
- 20% of GDP
- 87% of government revenues
- 73% of export income
The government has an increased focus on economic diversification as part of the Economic Vision 2030 goals. It aims to enhance private sector growth and non-oil industries have been steadily growing over recent years.
Bahrain has undergone a surge in infrastructure development in recent years, following allocation of funds from the GCC Development Programme. This aims to improve public services and address socio-economic issues.
The main contributors to GDP apart from oil and gas are:
- Financial services (16.5%)
- Manufacturing (14.4%)
- Construction (6.8%)
- Transport and communications (7%)
- Real estate and business services (6%)
Other positive measures for growth include:
- New infrastructure developments
- Free trade agreements
- Development of strong banking system
Source : GOV.UK