Expatriates voted Manama – the capital of Bahrain – as the best city in the world to immigrate to. Ease of residence and friendly Bahraini people are the main reasons for this reputation, but it is not the only reason. The ease of starting and running a business in Bahrain is equally attractive. In fact, this is what brings expats to Bahrain in the first place.
It wasn’t always like this. The government of the Kingdom of Bahrain has done a lot in the past decade to improve the business environment and make it interesting for local and foreign investors. They have heard what the investors and companies have said and created the necessary changes that have made Bahrain a good place to invest.
How did the situation improve?
According to the analysis issued by Societe Generale ( SARL Generale as) Compares Bahrain , the economies of the United States, Germany and East Asia, the country now has:
· Better transparency in transactions
· More managers protected by reducing their liability
· Improving Shareholder Power – Better than the United States
· Protecting investors on a par with developed economies
Foreign investors recognized the opportunity and poured money into the economy. In 2016, foreign investment totaled $ 243 million. In 2017, the number increased to $ 1.4 billion, and it reaches $ 1.5 billion in 2018.
Pros and cons of investing in Bahrain
Bahrain is clearly a good place to double your money. But, before investing here, you should be aware of all the pros and cons of this before taking the next step. For this purpose, it is best to contact a Bahraini business attorney to help you understand what this country has to offer and where the best opportunities for the next venture are.
The advantages of investing in Bahrain include, but are not limited to:
Adequate tax system . The Kingdom of Bahrain will not take the money you worked so hard for. Private companies are exempt from tax. They only pay a small amount in indirect taxes, but the total does not match the taxes you would pay in Europe or the USA. Bahrain has a more favorable tax method.
Great strategic location . The local economy has been growing continuously for the past forty years. This is a long path of good results that come from effective policies, but also from a wonderful strategic location located in the heart of the Gulf and well connected to the entire Middle East region, as well as North Africa. This helps to achieve good economic results and creates opportunities for potential investors like you.
The booming financial services sector . It has one of the most advanced financial sectors in the world, and certainly the most advanced in the GCC. World-class financial services are common here.
Booming real estate market . New developments are emerging across the country, creating new opportunities for investors. The market offers opportunities for any budget – from luxury properties to apartments for young people. Aside from local investors, foreigners may also invest in real estate.
Bahrain takes real estate very seriously. If you have never invested in this market before, you will discover that your rights and duties are very clearly defined and always protected. Institutions work hard to make everyone respect property laws.
Operating costs are cheaper than any other Gulf country . Here you will find the lowest rental rates for office and industrial space in the entire GCC region. Utilities such as gas, water, and electricity also have competitive prices due to the privatization of these sectors and assistance with government subsidies. Ultimately, operating costs remain low.
Skilled labor . Bahrainis are tech-savvy, well-educated, speak foreign languages, and are used to working with foreigners. This greatly reduces the need to hire workers from outside the country.
The possibility of bringing in foreign workers . If needed, immigration laws make it easy to bring in the workforce from abroad. Procedures have been relaxed in the last few years, so having the right people on your team shouldn’t be an issue.
Cultural openness . If you decide to move to Bahrain, you will not regret it. As mentioned before, Manama is one of the best places for expats in the world as foreigners find it easy to settle here. The cultural openness of the Bahraini people makes every foreigner welcome in the country.
An advanced thinking government . Although Bahrain already has a very open economy, the government continues to look for opportunities for improvement.
To be honest with you, there are some disadvantages as well. Most notably, they include:
Mismatch between market need and worker skills . As mentioned above, you will find a large workforce in Bahrain. However, depending on your sector, there may not be enough workers for you. You can easily bring in workers from abroad, but you have to take into account the time you need for that.
After all, the advantages of investing in Bahrain outweigh the disadvantages. If you are considering investing abroad and this country presents a good opportunity, contact us at Al Markh Law) For help. We have experience helping foreign investors understand the environment in Bahrain and determine if this is the right opportunity for them.
Call us for advice on the number +973 17277747 Or contact us via email at [email protected] . We will be very happy to assist you with your next project.
