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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

Tourism

Healthcare

Education and Training

Manufacturing Services

Business Services

Industrial Services

Other

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 assist international firms wishing to set up new companies in Bahrain, 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:

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.

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:

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:

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

The BDB is further able to offer:

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.

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