Bahrain Business and Economic Growth
|Banks and Insurance Comapanies|
In the Middle East, Bahrain has earned the rank of being the most economically progressive country and it is known worldwide as the 4th most free economy (ranked by The Heritage Foundation). This economic growth has come about due to the simple administrative and legal systems that have aided the industrialization of Bahrain.
This further provided some wonderful opportunities to domestic and foreign investors who were forced to pay attention to Bahrain as a center point for all business activities in the Middle East. There are many incentives offered to investors not the least of which is 100% ownership for certain categories of business. There are no taxing complications because there are no personal, corporate, or withholding taxes applicable to a Bahrain business. Furthermore, there is no sales tax (or VAT) for goods or services. This economic growth has resulted in a controlled and low rate of inflation over the years that many investors find attractive.
The location of Bahrain puts every business in potential contact with over 100 million people that comprise an instant market. This is made possible through the King Fahad Causeway that links Bahrain and Saudi Arabia. Starting a Bahrain business can be done in as little as 7 days. Running a business is also relatively easier in Bahrain because of its multi-lingual labor force that typically operates at a mere 1/3 the cost of other industrial economies.
Raw materials are easy to procure, as there is no import duty on them or on other commodities that are brought in for final processing, development projects, etc. Machinery that is brought for manufacturing purposes is also not taxed, nor are goods brought in for export. The paper is quick and efficient but it should be remembered that each Bahrain business needs to be properly registered as per the law.
The only requirement is that the business should be economically viable and supported independently without requiring government aid. This is determined by conducting a feasibility study by a recognized consulting firm in Bahrain. Apart from this a Bahrain business owner must show a good credit history and standing among the business community to ensure there are no last minute problems with a project application. There are many commercial loan and credit facilities provided for a Bahrain business run by foreign investors.
Two major service providers include the Bahrain Stock Exchange (BSE) that offers equity financing and the Bahrain Development Bank (BDB). The BDB is the main financial development institution that was established in 1992 in order to ensure healthy economic growth through industrial, commercial, and business investments in the private sector.