Bahrain may be the smallest country in the Gulf Cooperation Council, but that hasn’t stopped it from attracting international investors or creating a competitive business environment. The government continues to work on important projects and take measures towards the 2030 economic vision.
Let’s answer frequently asked questions and see if it is worth investing in the Kingdom of Bahrain.
Is the location apt for business?
Absolute. With a central location in the Gulf Cooperation Council, Bahrain has easy access to the Middle East’s $2 trillion economy. You can easily travel between these countries by land, air or sea. Bahrain also became an important transit hub following the opening of the Khalifa Bin Salman Port in April 2009. This made transporting goods by sea easier than ever before.
Bahrain also has easy access to Saudi Arabia, one of the largest markets and economies in the Gulf Cooperation Council.
How easy is it to do business in Bahrain?
Bahrain has business-friendly laws and allows 100% foreign ownership of business assets. The minimum investment level has been reduced, leading to lower operating and establishment costs. Bahrain also ranks fourth in MENA in terms of global connectivity.
The role of RERA is also to ensure that the rules are structured and simplified for the convenience of investors. The government has also launched an online platform called Sijilat for company registration.
Which businesses can thrive in Bahrain?
Bahrain is the only Gulf Cooperation Council country that supports free trade across sectors. However, business sectors such as financial services, manufacturing, utilities, tourism, real estate, healthcare, education, technology and innovation show some overlap.
Additionally, more than $32 billion is being spent on infrastructure and real estate development activities that are currently nearing completion. This will definitely encourage more investors in the country.
What are the upcoming real estate and tourism projects of Bahrain?
As of the second quarter of 2021, there are 116 real estate projects worth BHD 260 million under construction in Bahrain. Some of the most important projects are:
- King Hamad Causeway – In addition to the existing Saudi-Bahrain Causeway, one more causeway is being constructed and is estimated to be completed by 2025.
- Bahrain Metro
- Dilmunia Island
- Building for MoT (Ministry of Transport and Communication)
- Fasht Al Jarim
- Bilaj Al Jazayer (Tourist City)
Will we get a good Return on Investment?
The government offers a reasonable return on investment, but this mainly depends on the project invested in. Projects developed by Royal Envoy and Kosher Developers give you an average return on investment of 6 – 7%, regardless of market conditions. Buying to rent options are also good if you have invested in a well-known project.
Bahrain’s economy is thriving and continues to be recognized internationally for its economic growth. If you are looking for an investment opportunity, Bahrain will not disappoint you.
