Business in Bahrain
Bahrain has been on the trade map between
India and Saudi Arabia from time immemorial. After it
obtained independence in the mid twentieth century, the
country has made rapid strides in all walks of life
including its non-oil sectors. Though essentially an
oil-producing country, with more than 55% government
revenues emanating from natural resources such as crude oil
and natural gas, today Bahrain does not totally depend upon
its petro dollars. Bahrain enjoys a per capita income of
nearly 20,000 US dollars, generated by a population of over
600 thousand people each. Its gross domestic product rises
close to 15 billion US dollars annually. The non-oil Sector
has recorded an 80% growth year over year and is poised to
open a myriad of opportunities for the serious investors.
Because of such wide-spread diversity, Bahrain is insulated
from the many economic busts that engulf other nations in
the region.
Being a traditional regional trading hub, Bahrain enjoys a
prime place in the mercantile world with access to the
products from the entire globe. Import duties are levied at
average 10% and the Bahrain Dinar is freely convertible and
transferable. There is neither personal income tax nor
corporate tax in the country.
Private Sector
The Private Sector has a predominant place in trade and
business, while the government's recent focus has been on
developing basic industries such as aluminum refining, ship
repair and tourism. The Government permits 100% ownership of
new industries by eligible investors. Foreigners can
establish representative offices or branches without local
partners. The country is largely visited by thousands of
commodity dealers, financial services providers and global
oil industry traders every day.
Financial Services
When it comes to counting on business in a predominately
oil- related region, one can not but be amazed at the
stupendous growth of the financial services industry in
Bahrain, especially its banking sector. It is truly the
financial hub of the regions, with premier banks from the
world over vying for a visible place in the vicinity. Taking
over the mantle from Lebanon as the banking hub in the mid
'70s, largely owing to Lebanon's internal strife, today
Bahrain stands aloft with a plethora of commercials banks,
development banks, insurance outfits, consultancy centers
and money changers.
Shopping
Bahrain is a shopping paradise that can suit all purses. The
narrow lanes and alleys in the country's prime shopping
complex namely the 'Bab el-Bahrain' souk abound with
thousands of merchandise ranging from plastics, jewellery,
spices, perfumes, metal wares, handicrafts , textiles, etc.
For the exclusive jewellery monger, there is the Gold Souk
where hundreds of gold merchants vie with one another to
trade gold wares at their best designs and cheapest prices.
No doubt, Bahrain has become the region's wholesale market
place for gold trade, with buyers from all over the
neighborhood falling head over heels to buy gold at best
bargains.
Bahrain's duty free complex at its airport is one of World's
best shopping malls, stocking more than 40,000 merchandise
that represent world's finest brands and names at their
cheapest bargains.
Why Bahrain excels over others?
In short, excellent infrastructure, an ever expanding handy
market that includes the giant Saudi Arabia, an educated
work force that is very familiar with international business
language of English, relatively low operational costs
compared to other western countries, easy access from all
parts of the world, nil individual or corporate income
taxes, transparent legal system, its cultural accommodation
especially towards the expatriate fraternity, a friendly
local populace that reveres international cultural
pluralism, the country's liberalism in lifestyle for
foreigners with an active night life, and above all the
pragmatism evinced by the ruling emirate are perhaps a few
of the reasons for what Bahrain is today.