Investing in Bahrain Welcome

Contents

Business friendly Bahrain 2

Why the Gulf? 4

Why Bahrain? 6

Investment Opportunities 24

How the Economic Development Board can help 46

Contacts 49 Welcome

1 Business Friendly Bahrain

Welcome. We thank you for your interest in Bahrain.

Bahrain is unique in the Middle skilled. This means that companies East. Along with a stable economic can recruit locally, which keeps costs climate and competitive costs, you down and employee retention up. will find an attitude that welcomes The decisions of respected foreign investment, a highly international companies to select business-friendly culture. our Kingdom for their base in Unusually for this region, we the Middle East are rewarding have been welcoming foreign our initiatives. Steadily rising SETTING UP A BUSINESS IN BAHRAIN investment to our Kingdom for investment1 and our ascent in the WAS EASIER, QUICKER AND MORE not just years but decades. We, global ranking of open markets,2 therefore, have a great deal of demonstrate our growing success. STRAIGHTFORWARD FOR US THAN experience in understanding the With the Middle East’s economies IN ANY OTHER COUNTRY IN THE needs of foreign businesses and set to grow 3, diversify and consume REGION. THE ABILITY FOR KRAFT responding to them. more, many companies want to FOODS TO OWN 100 PER CENT OF THE Building on our natural geographic tap into this burgeoning trillion and human capital advantages, dollar market. Especially at a time COMPANY HERE WAS ATTRACTIVE. we have crafted a business when many developed economies THIS WAS NOT THE CASE IN ANY OF environment that fosters foreign are struggling, selecting the right companies’ prosperity. In turn, this place to locate is essential for your THE OTHER GCC NATIONS WE WERE has created a steady flow of jobs for profitability. We believe Bahrain’s 1 Bahrain’s investment capital, a measure of foreign and CONSIDERING. our people, who are widely known proposition is the most business domestic investment, rose by 22% to BD15.3 billion ($40.5 billion) in 2008. UNCTAD 2008. as the Gulf’s most educated and friendly. 2 Ranked 16th most free economy in the world and top in the Middle East for 2009, up from 19th in 2008, Index of Economic Freedom, published by The Heritage Foundation and The Wall Street Journal. Andrew Trevis Plant Director, Kraft Foods Bahrain 3 For 2009, the International Monetary Fund forecasts Middle East, North Africa, Afghanistan and Pakistan real GDP will grow at a rate of 2.6%, before rebounding 2 to 3.6% in 2010 (forecast published May 10, 2009). 3 Gulf at a Glance Table Why 2008 Nominal GDP 1.073 trillion USD (actual)* 2009 Nominal GDP 887 billion USD (estimate)* the Gulf? 2010 Nominal GDP 1044 billion USD (forecast)* 2008 Real Growth Rate 6.4% (actual)* 2009 Real Growth Rate 0.7% (estimate)* Over the past decade, the Gulf has projects provide opportunities for 2010 Real Growth Rate 5.2% (forecast)* become steadily more significant. specialist international businesses. 2008 Inflation rate 10.8% (actual)* Over the next decade, it is forecast Furthermore, the population is 2009 inflation rate 3.7% (estimate)* to become even more so. The growing fast and consuming more 2010 inflation rate 3.8% (forecast)* region’s growth and stability imports. From just over 28 million Population: 39 million† has already created important in 1998, the population stood at expansion opportunities for *Source: IMF World Economic & Financial Surveys Oct 2009. an estimated 39 million in 2008.7 †Source: EIU The GCC in 2020. Outlook for the Gulf and the Global Economy. international companies - in the Individual spending power is future it will create even more. exceptionally high, with an average Worth $1.1 trillion, the Gulf GDP per capita of $34,770.8 With economy is the size of India’s little agriculture or manufacturing and its recovery from the global in the region, this is boosting slowdown is forecast to be swift.4 imports - from food, to clothes, to By 2020, the region’s share of the electronics. world economy is expected to grow The wider Middle East and by 4.5%, and the combined gross North Africa domestic product (GDP) of the Gulf Cooperation Council (GCC) states The Gulf is also the ideal base from - Saudi Arabia, the United Arab which to access the countries of Emirates, Kuwait, Qatar, Oman and the wider Middle East and North Bahrain - is projected to be $20 Africa. Many of these countries are trillion, closing the gap with the pursuing economic reform policies world’s economic leaders.5 that are already boosting growth. For oil-rich countries, this includes Economic diversification diversification programmes similar Governments across the region to those in the Gulf. are successfully reinvesting oil With our unique position at the revenues in high-value projects to heart of the Gulf, Bahrain is diversify economies. For example, perfectly positioned for businesses roughly $1 trillion of infrastructure to exploit one of the world’s most investments are planned, which attractive markets. could shortly reach $3 trillion.6 Other projects span real estate, 4 Standard Chartered Bank, May 2009. transport, telecommunications, 5 EIU, The GCC in 2020: Outlook for the Gulf and the Global Economy. (Published March, 2009). education and training, healthcare 6 McKinsey, Beyond Oil Report 2007. 7 EIU. The GCC in 2020: Outlook for the Gulf and the and renewable energy. All these Global Economy. (Published March, 2009) 4 8 International Monetary Fund, 2009. 5 Why Bahrain Bahrain? at a glance

• Best market access to the Middle East • the Middle East’s freest economy – ranked 16th worldwide, ahead of Japan, Germany and France.10 • the Middle East’s freest market • the region’s lowest taxes, with zero corporate tax. • a long and successful track record • 100% foreign ownership, anywhere. (Bahrain has no “free zones” - the • competitive costs entire island is a virtual “free zone” thereby eliminating GCC export tariffs). • most educated & skilled workforce in the Gulf • the Gulf’s lowest operating and living costs. • a great place to live • a 40-year track record as the Gulf’s leading financial centre.

Key facts • more licensed financial institutions than anywhere else in the Gulf. • 2008 Nominal GDP 21.9 billion USD (CBB) • unrivalled access to the growing Middle East. • 2008 Real GDP 12.6 billion USD (CBB) • GDP growth (real): 6.8% (CBB, 2008) • One hour’s drive from 50% of Saudi Arabia’s GDP. • Inflation: 3.5% (CBB 2008) • more flight connections within the region than any other Gulf state. • Population: 1,101,230 (CIO 2008)9 • Bilateral trade and economic agreements with over 40 countries, • Area: 770 sq km including China, France, India, Singapore, the United Kingdom and the • Employment: 599,017 (LMRA Q2 2009) 17 Arab states party to the Greater Arab Free Trade Agreement. • Unemployment: 4.1% • the first Gulf state to have an activeF ree Trade Agreement with the • FDI: US$1,794bn (2008) (UNCTAD World United States.11 Investment Report 2009) • Key sectors: Financial Services; Logistics; Economic Rankings 2008-09 ICT; Value-added Manufacturing; Category source World Rank Out Of GCC/MENA Industrial Services; Professional Services. Ease of doing “Doing Business 2009” 18 181 2nd in GCC • Sectors identified for expansion: business ifc and World Bank Education & Training; Tourism; Freest Economy “2009 Index of 16 183 1st in MENA E economic Freedom” Renewable Energy; Healthcare & H heritage Foundation/ Wall Street Journal Pharmaceuticals. Inward FDI “World Investment n/a n/a 1st in GCC • Main export: oil, followed by aluminium. relative to report 2008” UNCTAD economic size • Main export markets: GCC; Europe; Number of cross- “World Investment n/a n/a 2nd in GCC United States. border M&A report 2008” UNCTAD deals in the • Currency: Bahrain Dinar first half of 2008 (USD1 = BD 0.376) Most Open “The Global Enabling Economy trade Report 2008 WEF.” 37 118 2nd in GCC • Time zone: GMT +3 Source: The Bahrain Report 2009” Oxford Business Group. • Sovereign ratings – Standard & Poor’s A/ Stable/A-1; Fitch A3

9 527,433 Bahraini and 511,864 expatriate. Source: Central Informatics Organisation. 10 Heritage Foundation. 6 11 The only other is Oman. 7 By sea

Bahrain is strategically positioned Unrivalled access in the middle of the Arabian Gulf and through its new Khalifa bin to the Middle East and Salman Port, opened in April 2009, offers ships capacity, operational efficiency and fast turn-around for North Africa (MENA) Markets shorter transit times. The port has a throughput capacity of up to 1.1 Bahrain’s strategic location at the The absence of the ‘free zones’ The recent growth of low-cost million TEUs (twenty foot equivalent heart of the Gulf is the most central seen elsewhere in the Middle carrier, Bahrain Air, has opened up units) a year and the potential to place in the Middle East to position East is a major advantage for many additional destinations. expand this to 3 million. your business, giving you the fastest businesses. This means companies The airport is currently undergoing access to export markets for your can export goods from anywhere a major three-phase expansion, Due to Bahrain’s location, the port is goods and services throughout in Bahrain across the GCC without which will significantly expand its better placed geographically than the region. facing tariffs or duties. passenger and freight capacity. other regional ports as a trans- We are the closest country to Saudi By air The first phase of expansion is shipping hub for containers bound

Arabia, the Gulf’s largest economy, Bahrain’s world-class airport has due to be completed in 2014, and for the large and rapidly expanding and major markets including the links to principal global finance and will expand capacity to 15 million northern Gulf markets such as Iraq, United Arab Emirates and Qatar are business centres, as well as the rest passengers a year. On completion Iran, Kuwait and Saudi Arabia. all less than an hour’s flight away. of the Gulf. More than 40 airlines of the final phase, planned for Access to every market in the operate scheduled services through 2038, the airport’s capacity should By road Middle East is quick and efficient - Bahrain International Airport to reach 27 million a year. by air, sea and road. more than 50 destinations. The The airport’s cargo facility is also Despite being an island nation, Bahrain is well-connected to the Gulf A series of infrastructure projects airport is home to Gulf Air, Bahrain’s set to expand to a capacity of by road. are enhancing Bahrain’s natural national airline, which has more one million tons per annum - a advantages. Following the opening flights to more cities in the region level comparable with London’s The 25km King Fahd causeway than any other Gulf carrier. Heathrow. of the Khalifa Bin Salman Port in provides a direct link to by far the April 2009, we are set to become largest market in the region, Saudi Flight times across the Middle East 4HRS a major regional trans-shipment Arabia. 50% of the Saudi market

3HRS centre. Bahrain International TURKMENISTAN Istanbul TURKEY GDP is accessible within one hour’s

Airport, the region’s leading cargo 2HRS SYRIA drive of Bahrain. Approximately 12 Tehran AFGHANISTAN hub, will shortly expand both Cairo IRAQ IRAN 1HR million passengers and 500,000 passenger and freight capacity. PAKISTAN New Dehli trucks cross the causeway each year. The government is, additionally, 6HRS 5HRS 4HRS 3HRS 2HRS Dubai 2HRS 3HRS 4HRS 5HRS 6HRS 7HRS EGYPT Al Manamah Bangladesh INDIA planning major road and SAUDI ARABIA From 2014, a 45km causeway will 1HR SUDAN rail projects. OMAN link Bahrain to Qatar, which has the

2HRS So central is Bahrain that it is YEMEN world’s third largest gas reserves. The becoming a favoured hub for logistics. 3HRS link will complete a single trans-Gulf highway, connecting the entire $1.1 DHL, one of the world’s leading 4HRS logistics companies, uses it as its Kuwait City trillion Gulf Market, with Bahrain at 5HRS regional base for Eastern Europe, the its centre. By 2030, this causeway King Fahd Causeway Middle East and North Africa, and will also carry a freight railway, so New Quatar Causeway (under construction) locates its air fleet in Bahrain. Al Manamah Doha Dubai increasing its capacity.

Abu Dhabi

8 Bahrain’s road links Muscat 9

Jeddah Bahrain’s economy has long been This has fostered a uniquely This means there is a huge market the freest in the Middle East and favourable business environment, for Bahrain-based businesses’ has steadily improved its ranking with one of the many outcomes goods and services. Businesses can worldwide - today the Index of being productivity-led growth exploit the growing Middle East Economic Freedom places us coupled with low inflation. markets with the added benefit of The Middle East’s ahead of G7 economies such According to a Conference Board being able to export competitively as Germany, France and Japan, report,12 the productivity growth around the globe. as well as the major developing of Bahraini workers is five times Freest Market Ongoing economic and legal markets like China and India. greater than the GCC average. reforms will ensure that Bahrain In Bahrain, you can retain 100% Our sovereign credit ratings have continues to maximise the potential foreign ownership. You can freely remained robust, demonstrating successes of both Bahraini and repatriate capital, profits and the strength of our economic foreign businesses. dividends. And we offer the lowest model. Our ratings are: Standard & • ranked the world’s 16th taxes in the region. In short, we Poor’s, A/Stable/A-113; Fitch, A14. freest economy, and freest do everything we can to maintain It is both easier and more cost- in the Middle East. and improve our position as the effective to do business here. Your freest market in the Gulf every year, • lowest taxes in the business can operate freely, with through ongoing economic reform. GCC, with no corporate, virtually none of the restrictions that personal, value-added The Government is committed to you would find in other markets. or withholding tax. enabling the private sector to drive Free trade agreements growth and improved productivity • 100% foreign ownership - from making the economy more We have bilateral trade and of businesses allowed. efficient to enhancing the skilled economic agreements with more • no restriction on Bahraini labour pool. The business than 40 countries, including China, repatriation of capital, environment is more transparent France, India, Singapore and the UK. profits or dividends. and business-friendly than And we have an active Free Trade elsewhere. Agreement with the United States • the first Gulf state to have an since 2004, which effectively allows active Free Trade Agreement Over the last four decades, Bahrain companies to charge 35% more for with the United States.15 The Central Bank of Bahrain is the most has diversified its economy away their goods and services than they do from oil more rapidly than any progressive regulator in the region. in Bahrain and to export them tariff- other Gulf State, supporting steady free to the huge U.S. market. and stable economic growth. Jean-Christophe Durand BNP Paribas Regional Director – GCC

12 Growing Beyond Oil. Productivity, Performance & Progress in the GCC, (June 2008). 13 As at 15 April, 2009. 14 Long-term foreign currency issuer default rating, 22 December, 2008. 10 15 The only other is Oman. 11 The business environment here is very favourable. Here we have free and unrestricted movement of capital, which is not usual. Bahrain is a very safe place to operate a business – with a stable political environment and low economic risk.

Mazin Khoury Vice President, AMEX (Middle East) B.S.C.(c)

12 13 A long and successful track record of helping Businesses What is more, Bahrain’s arbitration with 21 countries, and is a party to and mediation centre, which will the New York Convention on the flourish open in 2010, will provide the private Recognition and Enforcement of sector with an efficient mechanism Foreign Arbitral Awards and the for resolving commercial disputes. Washington Convention on the For many years, Bahrain has Central Bank of Bahrain (CBB) is Settlement of Investment Disputes Creative and innovative businesses been the location of choice for widely recognised as the region’s between States and Nationals of have important advantages. Strict companies seeking to do business pre-eminent single regulator. The Other States (the ICSID Convention). intellectual property and copyright in the Gulf. Gulf’s other financial centres, laws are enforced which ensure the Aware of the need to supplement launched in the last few years, have Leading multinational highest standards of protection. local resources with international been known to look to the CBB organisations such as American expertise of the highest calibre, when deciding how to formulate The Kingdom of Bahrain is a Express, BNP Paribas, Standard Bahrain has recently signed a their own regulations. constitutional monarchy. It has a Chartered and DHL have operated Memorandum of Understanding with bicameral parliamentary system and out of our Kingdom for over 30 Established legal & the American Arbitration Association, a constitutional court, so ensuring with a view to it actively assisting years, choosing it as their base for regulatory framework adequate checks and balances on doing business across the wider in alternative dispute resolution Businesses enjoy the protection of enacted laws. Bahrain’s constitution Middle East and North Africa. And procedures of commercial disputes. the Kingdom’s legal and regulatory guarantees the right of recourse Ernst & Young, one of the world’s systems, with their established track to the courts. The Administrative leading professional services firms, record and global best-practice Court is empowered to adjudicate has been here since 1928. standards. on all decisions and rulings by Bahrain has a regulatory governmental bodies. environment that has evolved in Conscious of the business Progressive Legislation consultation with the needs of community’s need for alternative companies and provide an open dispute resolution procedures, Bahrain has, in recent years, and transparent environment that Bahrain enacted in 1994 an modernised its business and trade- fosters growth. Our legal system International Commercial related laws and regulations to be protects companies’ rights, while Arbitration Law, adopting consistent with the requirements of our free market environment allows the UNCITRAL Model Law the World Trade Organisation and businesses to thrive. for International Commercial the Free Trade Agreement between Arbitration. Bahrain and the United States. Since the 1970s, Bahrain has been the Middle East’s leading Bahrain has bilateral investment financial services centre and the promotion and protection treaties

14 15 Competitive Most educated and skilled Costs workforce in the Gulf

Bahrain’s low cost of doing business is an For 40 years foreign investors have it comes to developing women’s important element of our business-friendly benefited from our greatest natural capabilities.19 Corporate Income Tax rates in GCC proposition. asset, our people. Bahrain has always been committed countries - percent 20-85 Bahrain has a large percentage of to improving its workforce, and we Living in Bahrain is less expensive than Corporate income tax rates in nationals employed across many continue to upgrade skills across GCC countries - percent elsewhere in the Gulf, with Manama judged industries thanks to its well-trained, a broad range of business sectors. a cheaper place to live than competing bilingual, cost-efficient workforce. The latest Trends in International 0-55 0-55 cities while at the same time maintaining an English is the business language Mathematics & Science Study, of Bahrain and is widely spoken for example, ranked Bahrain the excellent standard of living.16 Wages are, 0-35 0-30 throughout the Kingdom. leader from among the GCC therefore, competitive and typically less than 20 Our workforce is by far the most countries. As part of its wider elsewhere in the region. 0 educated and skilled in the Gulf, programme of educational reform, Bahrain Oman Qatar UAE Kuwait Saudi the Government regularly consults Other basic costs are also inexpensive. Rents Arabia enabling businesses to minimise spending on expatriate packages, the private sector to identify precise for offices and industrial land are lower than needs relating to the labour market. Source: E&Y Corporate Taxation in the Middle East 2009 reduce employee churn and elsewhere. And, the combination of subsidies thus build long-term, sustainable SOUGHT-AFTER SKILLS BASE and privatisations in the utilities sectors, mean local business models. For Tamkeen, the labour fund, has that businesses’ example, in the financial services already invested over $185 million electricity, Total office occupancy costs per workstation - Middle East sector, there are no restrictions to train Bahrainis in the most on hiring expatriate workers gas and water Dubai 21,620 relevant and sought-after skills and no ‘Bahrainisation’ quotas. costs are highly Abu Dhabi 18,190 required by the private sector, in Nevertheless, two-thirds of the competitive. Doha 16,310 sectors such as financial services, workforce is Bahraini, thanks to the Kuwait City 11,350 manufacturing, hospitality, abundant pool of Bahrainis with Finally, Bahrain Bahrain 7,150 aeronautic maintenance relevant skills.17 has the lowest Riyadh 6,740 engineering and healthcare. taxes in the USD per annum HIGHLY EDUCATED 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 We have many specialist training GCC, with no Bahraini women are highly institutions, offering global

corporation, Source: DTZ Global Occupancy Cost - Offices 2009 educated and well-represented in accreditation in fields such as income, value- all major professions, holding senior finance, information technology positions in banking, business and added or withholding tax. There are also and medicine. For example, in the accountancy. financial services sector we have no capital gains or wealth taxes, and no They make up 37% of nationals in the Bahrain Institute of Banking inheritance taxes or death duties. the financial sector and around and Finance, which provides Average business class return ticket 25% of the total working Bahraini training and specialist development Cost of living index %, Manama = 100% Averageto London business in US$ class return ticket to London in US$ population.18 Furthermore, our for opportunities in the banking, Cost of living index %, Manama = 100% country leads the region when finance and insurance industries. 4,881 4,468 3,876 168 3,664 140 2,501 3,005 132 131 132 General 100 Gulf Business Salary Survey 2009 Index Average Monthly Salary in US$ for a Western Expatriate Employee in The Gulf Bahrain Abu Doha Dubai Kuwait Riyadh Bahrain Dubai Abu Doha Riyadh Muscat Bahrain KSA Kuwait uae Oman Qatar Dhabi Dhabi General Manager Source: EIU 2009 Source: travelocity.com Multinational Company 13,723 18,230 15,350 19,110 14,125 16,200 Head of Information Technology 11,888 15,188 13,400 15,225 12,425 13,675

16 EIU Worldwide Cost of Living Index, September 2009. Business Development Management 12,000 14,906 12,688 15,375 12,575 14,113 17 Central Bank of Bahrain, 2009. 18 Central Bank of Bahrain, 2009. Banking Brand Manager 13,800 17,250 17,250 17,250 13,800 14, 375 19 United Nations Development Programme: Gender Construction Project Development Index, 2009. Manager/Chief Engineer 12,900 18,850 15,275 17,925 13,188 14,975 20 Published by the US National Center for Education. 16 Executive Secretary/PA 3,625 4,088 3,838 5,863 3,650 5,588 Our expats say this is a home away A great, progressive place to from home. It is very friendly, has an Live excellent standard of living, modern Doing business in a country is the International Music Festival facilities at respected hospitals one thing. Actually living there is attracts well-known performers to like the International Hospital of infrastructure, good schools and another. our shores. Bahrain, the American Mission Hospital and the Bahrain Specialist provides a safe, nurturing place for It is vital that companies are Shopping is a great pleasure Hospital are respected across the able to offer employees who are here. We have all the designer region. families. relocating an enviable lifestyle, boutiques and famous international and Bahrain does just that. We brands, including supermarkets LOWEST COST OF LIVING have an open and relaxed attitude, and coffee chains. But we also The cost of living is the lowest in Mazin Khoury Vice President, AMEX (Middle East) B.S.C.(c) with a reputation as the most liberal have a multitude of local shops that the GCC, with accommodation country in the Gulf. Bahrain is a are full of character: the famous reasonably priced and there’s a place without prejudice, having souqs of Bahrain, with their narrow wide range of housing to suit all long been a multi-cultural, multi- streets and tiny emporiums, are still tastes and lifestyles. ethnic and multi-denominational thriving. melting pot. With 33 islands the country offers Bahrainis are known for their a wealth of water sports, including This means that business people warmth and hospitality and mix yachting, fishing, kite surfing, jet from all nations can feel at home more freely with expatriates than skiing and diving. We are famous here, enjoying our warm, rich elsewhere in the Middle East. for equestrian sports too, and have culture and long-established Indeed, international communities a number of riding schools and respect for diversity. live comfortably side by side, all stables on the island. There are enjoying freedom of worship, UNIQUE CONTRASTS many gyms and sports clubs, and including Muslims, Christians, most team sports are played here, Bahrain is unique in the Gulf for its Jews, Buddhists and Hindus. including rugby, soccer, cricket striking contrasts of old and new, FAMILY-CENTRED and basketball. Additionally, there of modernity and cultural heritage, are a variety of family facilities, of innovation and authenticity. Our For those with families, there including water parks, animal capital city of Manama combines a is a wide choice of schools. reserves and spas. modern outlook with a richness of Those based on the British or history and culture that is hard to International Baccalaureate We have a very busy sporting find elsewhere in the Gulf. curricula include St. Christopher’s calendar, hosting innumerable School and the British School of international sporting events, most With its cosmopolitan lifestyle, Bahrain. The Ibn Khaldoon and famously the Bahrain Formula One Manama is particularly known The Bahrain School are based Grand Prix. for its bustling restaurant life and on the US curriculum. There are café culture. It is also known for The lifestyle is not only an also the École Française, the New its thriving arts and music scene attraction to expatriates, but also Indian School and the Japanese - with its art galleries, poetry the reason Bahrain retains its best School of Bahrain, a Nihonjin readings and nightlife. In the and brightest: talented Bahrainis Gakko school, which offers the charming quarters of the houses remain in the Kingdom, rather than same curriculum as public schools of Muharraq, you can hear weekly moving overseas. And, in keeping in Japan. Universities, such as lectures on topics of all kinds, with our business friendly promise, the Royal College of Surgeons within the walls of traditional foreigners can own freehold in Ireland, Medical School of Bahraini houses which have been property in many of our attractive Bahrain and DePaul University, all lovingly and carefully restored. new developments. award internationally-recognised And each year the Spring of qualifications. Culture festival brings an explosion of art, music and performance from We also have excellent public and around the world to Bahrain, while private hospitals. The advanced 18 19 Infrastructure

Our infrastructure is modern and is continually Forthcoming infrastructure updated in order to provide the best facilities for developments: businesses from all sectors. • A new Bahrain-to-Qatar causeway, due to be External infrastructure: completed in 2014. By 2030, this causeway will carry a railway for freight traffic. • Khalifa bin Salman Port - a major new regional trans-shipment centre, with a depth of 15 • The @bahrain development, a commercial, metres and a throughput capacity of up to 1.1 education and entertainment destination million TEUs (twenty foot equivalent units). which will provide a vast array of consumer entertainment and business investment • Bahrain International Airport - a major opportunities. international airport about to undergo a major three-phase international expansion scheme. • A new Science and Technology Park is also in development, designed to encourage Internal infrastructure: technology innovation and scientific research across the region. • Bahrain International Investment Park - a 247 hectare business park for manufacturing and services companies, close to the port and the airport.

• Bahrain Investment Wharf - a 170 hectare mixed-use project with industrial, commercial and residential space.

• Bahrain Logistics Zone - located next to the port, this is the Middle East’s first multi-modal logistics hub.

• Bahrain Financial Harbour - a 380,000 square metre world-class development that is a financial city in the heart of Manama.

• Bahrain International Circuit - a seven-track motorsport facility.

20 21 This is a free country that is not at all restrictive. Our wives like it. The fact that they can find work easily and enjoy a high quality of family life is a strong selling point.

Andrew Trevis Plant Director, Kraft Foods Bahrain

22 23 Investment FINANCIAL SERVICES The CBB, our sole regulator, is respected worldwide for prudent The Gulf’s financial capital for and forward looking management Opportunities nearly 40 years, Bahrain has led of licensing requirements, capital the Middle East in a range of adequacy, risk management, sectors - from banking, to asset business conduct, reporting and management, to Islamic finance. disclosure requirements - as well • financial Services COMPETITIVE ADVANTAGE as enforcement action. The • logistics CBB is known for balancing Bahrain is the most established and firm enforcement of practical • information Communication Technology robust financial centre in the Gulf. regulations with understanding the • value-added Manufacturing Over time we have built a rigorous needs of business. system of regulation, extensive • industrial Services infrastructure and local skills base Our large pool of local talent is • professional Services that rival centres cannot match. unique in the region. In spite of • education & Training adverse conditions, this continues • Proportion of GDP: 27% • tourism to grow, with 2008 seeing • renewable Energy • Number of licensed financial approximately 1,700 new jobs institutions: Over 400 • healthcare & Pharmaceuticals created in financial services, taking • Total number of employees: total employment in the sector to 13,992 (67% are Bahrainis) in the region of 14,000. Nearly two thirds of these employees are Our financial centre has grown Bahraini23 providing a rich pool of Our unique mix of market access, Through our national economic steadily over many years and was local experience and expertise. skilled labour, low operating costs, strategy, articulated in our Vision judged the Gulf’s most sophisticated zero corporate taxes, an excellent 2030 economic blueprint, Bahrain financial market.21 Within the We also have an extensive support lifestyle and 100% foreign ownership is committed to the creation of Middle East, we have also long been infrastructure of professional has stimulated investment across a high-quality jobs in skilled and regarded as the most effectively services firms such as IT, wide range of sectors. sustainable industries. To achieve regulated financial centre. accountants, consultants and this, the best international firms lawyers. Bahrain was the first country in must continue to select Bahrain During the recent financial turmoil, the region to diversify away from Financial services is our economy’s as their regional hub, which the Central Bank of Bahrain’s oil and gas, 40 years ago. Very largest sector, accounting for more means we will continually aim to (CBB’s) foresight and balanced early on, we had the foresight to than 27% of GDP.24 Our country provide the most business-friendly approach enabled us to withstand set in motion a series of initiatives is now home to more than 40025 environment in the Gulf. the banking crisis with minimal to encourage industry sectors that impact to the economy. 22 licensed financial institutions - could offer significant investment We now have an established the most in the Middle East. potential, based on Bahrain’s critical mass, infrastructure and natural and human resources, skills pool in a number of key global market trends and regional sectors, with new ones developing demands. all the time. 21 WEF Global Competitiveness Report 2008-2009. 22 Bahrain’s Finance Minister was named Finance Minister of the Year 2009 for the Middle East and North Africa region at the annual meetings of the World Bank and IMF. 23 Source: Central Bank of Bahrain, 2009. 24 Source: Central Bank of Bahrain, June 2008. 24 25 As at January 2009. 25 Insurance BANKS IN BAHRAIN Bahrain is a hub for the Middle Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citibank, East’s insurance industry. Dexia, HSBC, ICICI, JPMorgan Chase, Standard Chartered and many more. There are also regional banks, such as Arab Bank, With more than 170 insurance Arab Banking Corporation, Arcapita, Gulf Finance House, Investcorp, companies based here, we have National Bank of Kuwait, NCB Capital, TAIB Bank and more. considerable specialist expertise and are becoming a regional leader in the field.

Bahrain’s insurance companies Banking include conventional and Banking is the biggest part of our Islamic (see Islamic finance) financial services sector and has institutions, serving both onshore expanded steadily over time as the and offshore markets. region’s oil wealth has grown. This sub-sector is expanding rapidly in response to an The CBB has long imposed a increasing need. higher minimum capital ratio (of 12%) than required by the Basel Insurance companies anticipate Convention (8%), in order to that regional GDP growth, population growth and encourage sound lending policies. government reforms will drive Local banks have continuously continued expansion. In the financial sector, people exceeded the required level of capital. Asset Management consider strategy, risk and Bahrain’s asset management Overall, the banking system’s industry started in the 1980s transparency when selecting consolidated balance sheet has and is now the regional leader. experienced annual average a location. Bahrain does all of It has a regulatory system and growth rates of 22% over the years these very well. services infrastructure that will from 2006 to 2008.26 empower asset managers to Across the Middle East, demand meet increasing demand from Jean-Christophe Durand BNP Paribas is building for more sophisticated both institutions and individuals, Regional Director – GCC as well as providing the ideal products. cost and tax effective location to Surging infrastructure development domicile funds. is creating a need for structured Recently, in June 2007, the CBB finance and lending products. issued a regulatory framework Trade finance opportunities that broadened the range of are increasing with the GCC’s products asset managers could integration into world markets. And, offer domestically, to include increasing private wealth is fuelling alternative investment funds. needs for private and retail banking products. INSURERS ALREADY IN BAHRAIN

ACE, Allianz Group, AXA, Hannover Re, Lloyd’s brokers PWS and Zurich Insurance. ARIG is a local insurance provider. 26 26 Source: Central Bank of Bahrain, 2009. 27 LOGISTICS T o BahrainT o Bahrain CustomsCustoms GateGate TheThe P ortPort Ecosystem Ecosystem PowerPower BLZ BLZ Bahrain is the ideal Middle Eastern StationStation BIIP BIIP DirectDirect Port Port A ccess Access • 1.1• 1.1 million million TEUs/year TEUs/year (Phase(Phase One) One) base for logistics companies, with BIW BIW KBS KBS Port Port • 2.5• 2.5 million million TEUs/year TEUs/year OtherOther (Phase Two) a number of leading international IndustriesIndustries (Phase Two)

•V•Value-addedalue-added logistics logistics and and companies selecting it as their hub BahrainBahrain Logistics Logistics Zone Zone custom-freecustom-free warehousin warehousing g

for both the immediate region and KBS P KBS P BahrainBahrain International International • Light• Light manufacturing manufacturing ort InvestmentInvestment Park Park beyond. FutureFuture 1.5 1.5 ort 2 km 2km BLZBLZ F u tureF u ture BahrainBahrain Investment Investment ExpansionExpansion Port • Mixed• Mixed use use real real estate estate park park COMPETITIVE ADVANTAGE Port WharfWharf ExpansionExpansion Located at the heart of the Gulf, we have a natural geographic deep enough to accommodate any long-term plan is to be able to handle advantage that we are continually container ship currently in service, 28 million passengers by 2038. The enhancing through new and is better positioned to serve the airport will also soon be home to infrastructure projects. When expanding upper Gulf markets than Cargo Oasis, a cargo facility with combined with our low cost other ports in the region. The port is the capacity to handle one million environment, operating from Bahrain the second largest in the GCC, has tonnes of air cargo a year - a level can make a significant difference to a throughput capacity of up to 1.1 comparable with London’s Heathrow profitability. million TEUs (twenty foot equivalents) Airport. Islamic finance re-Takaful (Islamic insurance) THE OPPORTUNITY Strategically located in the heart of and room for expansion. companies (2005). Regional distribution Bahrain is recognised as a global The Gulf and wider Middle East the Gulf, Bahrain is the gateway to Located in the Hidd Industrial Area, Leading international cargo carrier, leader in Islamic finance. These were the first regulations for economies are both extremely the region with easy access to the the new port is adjacent to the DHL, has enjoyed the airport’s Takaful companies that complied wealthy and are maturing large economies of Kuwait, Saudi Bahrain Logistics Zone, the Middle We have pioneered many of strategic location for many years, with Accounting & Auditing fast. Their continued growth Arabia and Iran. With traffic volumes the financing instruments that East’s first multi-modal logistics and evolution will drive further using it as their regional distribution Organisation for Islamic Financial projected to more than double by hub, which was launched in 2008 have become popular in recent expansion in financial services. 27 centre for Eastern Europe, the Institutions standards. The CBB 2015, and much of the increase and concentrates on re-export and years, and play host to the largest expected in the upper Gulf region Middle East and North Africa. was also the first central bank to SUPPORTIVE ENTITIES value-adding logistics activities. concentration of Islamic financial - the Kingdom is the ideal base for When combined with Bahrain’s open issue a Sukuk Bond (2001). Within this area, there is a range of institutions in the world. Since • Central Bank of Bahrain logistics companies. specialist facilities such as chilled economy and free trade credentials, 2000, assets in Bahrain’s Islamic Takaful is an Islamic insurance - www.cbb.gov.bh Our combination of highly warehousing. our extensive web of connections banking sector have increased concept, where insurance is • Bahrain Association of Banks makes it a powerful logistics hub. We developed road, sea and air Preparing for growth by 1,280%, accompanied by a undertaken but the rules and - www.banksbahrain.org connections provides logistics have bilateral trade and economic In 2014, the new causeway to Qatar significant increase in the number regulations of Islamic law are • Bahrain Insurance Association businesses wishing to deploy multi- agreements with over 40 countries. will open, reducing the travel time of institutions. observed. - www.bia-bh.com modal logistics strategies with the Consequently, Bahrain has been by road from more than eight hours most efficient and speedy processing ranked first in the Middle East for We have led the way in the Its popularity is rising rapidly in the • Accounting & Auditing to about one and a half hours. This of trade goods in the Gulf. free trade.28 development of new products. Middle East to the extent that many Organisation for Islamic Financial will complement the King Fahd Our CBB set the benchmark for conventional insurance companies Institutions - www.aaoifi.com Building on these advantages, the causeway, which has brought 50% of THE OPPORTUNITY Islamic banking regulation, and have added Takaful arms Government is investing $2.9 billion Saudi Arabia’s GDP within an hour’s As the Middle East and North Africa’s to upgrade infrastructure, through a introduced the first regulatory (e.g. Allianz Takaful Bahrain, drive. trade with the rest of the world The quality of supervision new causeway to Qatar, an airport framework specific to Takaful and Hannover Re Takaful). Bahrain International Airport is expands, so the regional logistics is the primary reason for expansion, a state-of-the-art logistics also being expanded in a multi- sector will grow. Major markets such us being here. The Central zone and larger port. ISLAMIC FINANCE ORGANISATIONS ALREADY IN BAHRAIN Bank of Bahrain is the most phase operation. The initial phase as Saudi Arabia are beginning to progressive regulator in Modern facilities includes the construction of a second consume increasing volumes of Financial institutions: Arcapita, Capivest, European Islamic Bank, Gulf the region and takes into The new Khalifa Bin Salman Port, passenger terminal able to handle imports, and Iraq may follow as its Finance House, Kuwait Finance House, Maybank and more. Industry consideration the needs associations: The Accounting and Auditing Organisation for Islamic which opened in April 2009, is 5 million passengers and the economy stabilises. of businesses. Financial Institutions, the General Council for Islamic Banks and Financial Institutions, the International Islamic Financial Market and LOGISTICS FIRMS ALREADY IN BAHRAIN 27 Oxford Business Group’s 2008 Bahrain report forecasts Jean-Christophe Durand traffic volume will increase from 2 million twenty foot equivalent units in 2007 to 5 million by 2015. the International Islamic Rating Agency. BNP Paribas Regional Director – GCC Agility, Agunsa, APM Terminals, Aramex, DHL, Expeditors, FedEx, 28 World Economic Forum Enabling Trade Index 2008. BNP Paribas has used Bahrain as its regional base for 35 years, and was one of the first tenants of GAC, Kuehne+Nagel, Panalpina, TNT, UPS and others. 28 the Bahrain Financial Harbour. 29 INFORMATION The new @bahrain centre being Our telecommunications COMMUNICATION built will feature a TechnoPark infrastructure is excellent, with TECHNOLGY with state-of-the-art technology fibre optic telecommunications infrastructure and a premier cables linking us with the rest of Bahrain’s liberal and advanced research facility. the Gulf and the region’s fastest information, communications internet download speeds.29 and technology infrastructure IT The decision to move our corporate and policies have encouraged Business process We have a strong IT infrastructure, many ICT companies to base their outsourcing headquarters to Bahrain was based on a strict intellectual property laws and regional headquarters here. a well-educated labour force. Bahrain is the ideal location for variety of factors, namely the Government’s Competitive Advantage business process outsourcing. Strict intellectual property laws investment in infrastructure and I.T. bandwidth We offer a unique mixture of - supported by the US-Bahrain Among other things, the region development, coupled with the fact that central geographic location; Free Trade Agreement, World offers opportunities in network, skilled, multilingual workforce; Intellectual Property Organisation desktop, data centre and the nation has one of the best regulated liberal economy and competitive and other international agreements enterprise application outsourcing. costs. When combined with our - protect intellectual capital and telecommunications sectors in the region. The Opportunity strong telecoms infrastructure, this create the conditions needed for Furthermore, the country’s well-educated makes Bahrain ideal for accessing software development outsourcing. Lifted by massive government the Gulf’s growing market. spending and by rising private and young workforce, a standard of living Telecommunications sector budgets, ICT expenditure The Kingdom has always been conducive to attracting the best in foreign Bahrain has a competitive and in the region is expanding fast the Gulf’s technological pioneer growing telecommunications at a time when it is stagnating talent and favourable air travel links with and has experienced a fast rate of market, governed by the elsewhere. According to IDC, the technological innovation. prompt visa processing, all combine to make Telecommunications Regulatory information provider, the GCC in IT We have a strong record as a Gulf Authority (TRA), which is tasked alone will be worth $30-$45 billion Bahrain the ideal location for a company with ICT leader, being the first to: with maintaining effective and fair in 2010, with roughly 45% of it from global ambitions. Although when it was first • introduce 3G and 3.5G high- competition. Since the TRA began Saudi Arabia. And, within Bahrain speed download services operating in 2003, the number of itself the telecommunications sector announced, many considered our decision telecommunications companies continues to grow. • introduce Smartcards (2005) has expanded enormously. controversial, the efforts of the Bahrain Supportive Entities • fully deregulate and liberalise According to the TRA, the number Economic Development Board made the re- our telecommunications of telecommunications licenses has • TRA (Telecommunications market (2004) climbed from 18 to 134 in the five Regulatory Authority) location seamless and hassle-free. Zain has years to 2008. This encompasses • go nationwide with WiMax • GCC Telecommunication Bureau never looked back. fixed line, mobile and internet. wireless networks (2007) • eGovernment of Bahrain The total number of subscribers for This means we often adopt new fixed telephony, mobile telephony • Bahrain Internet Society technologies ahead of other Gulf Dr Saad Al Barrak CEO of Zain Group Bahrain and internet usage has climbed countries, so creating commercial • Bahrain Information Technology steadily. Penetration remains low opportunities and ensuring Society for fixed telephony and internet. that ICT companies have the infrastructures they need to grow.

ICT COMPANIES ALREADY IN BAHRAIN

Cisco, Hewlett Packard, Huawei, Kalaam Telecom, Lightspeed, Menatelecom, Microsoft, , O2Connect, Saudi Telecom, Software AG,

Tech Mahindra, TATA Consultancy Services, WIPRO and Zain Group. 29 The Gulf business news and analysis magazine, 30 Communications Special Report, June, 2008. 31 Value-added Specialist, skilled and semi- THE OPPORTUNITY manufacturing skilled workers are plentiful, as A growing appetite for international branded goods is opening up manufacturing is our largest Bahrain is host to a range of strategic manufacturing opportunities. For example, the region imports business employer. With Bahrain’s manufacturers that have chosen increasing amounts of processed foods, cosmetics, beauty products and labour agency, Tamkeen, providing to locate here in order to serve the pharmaceuticals. extensive training, the Kingdom’s wider Middle East. skilled workers can fulfil roles up to SUPPORTIVE ENTITIES COMPETITIVE ADVANTAGE senior management. • Bahrain Chamber of Commerce & Industry Set within the GCC common Finally, the expense of labour, - www.bahrainchamber.org.bh market, our low costs, central industrial land and utilities is highly • Bahrain Investors’ Centre - www.moic.gov.bh location and excellent transport competitive, making Bahrain a infrastructure make Bahrain the relatively low cost manufacturing • Bahrain International Investment Park - www.biip.com.bh ideal base for exploiting the centre. Gulf’s growing appetite for Growing food imports manufactured goods. With food imports set to No other Gulf state enjoys our climb considerably, there are combination of central location and growth opportunities for food transport infrastructure. Geographic manufacturers. According to the centrality reduces freight costs, Economist Intelligence Unit, the while the road, sea and air links are Gulf’s food imports are likely to excellent. Bahrain is just one hour’s double in the next decade - from drive from 50% of Saudi Arabia’s Kraft decided on Bahrain after looking at various $24bn in 2008 to $49bn in 2020.30 economy, the Gulf’s largest. And, other locations and hearing about the Bahrain the new Khalifa Bin Salman Port Kraft, the world’s second biggest International Investment Park’s incentives and provides one of the Gulf’s leading food and drinks company, has trans-shipment hubs. chosen to manufacture cheese facilities. Being able to have 100% foreign ownership and its Tang beverage in Bahrain Membership of the GCC common was essential, but we also liked the fact that the since 2007. The plant is the second market guarantees duty-free biggest outside the United States park offers a one-stop-shop. Although, we have an trade with all fellow members. and serves the Middle East’s exemption from recruitment restrictions for five Unlike ring-fenced “free zones” in rapidly growing market for dairy other markets, companies based years, the talent pool is quite possibly the best in the products. anywhere in Bahrain can benefit Gulf. The numbers just stacked up. We were profitable from duty-free trade. Furthermore, Bahrain has specialist facilities in our first year of operation. we have bilateral trade and for food manufacturers, including economic agreements with over chilled warehouses. 40 countries, including the United Andrew Trevis Plant Director, Kraft Foods Bahrain States, China, France, India, 30 The GCC in 2020: Outlook for the Gulf and the Global Economy. Singapore and the UK. Kraft’s state-of-the-art factory, opened in October 2007, produces 60,000 metric tonnes of Kraft cheese and Tang products annually MANUFACTURING COMPANIES ALREADY IN BAHRAIN for the GCC region. It is planning to expand the plant to service Kraft, Coca Cola, Nestle, Yakult. developing markets such as Iran, Iraq and Pakistan.

32 33 We get more impressed by the calibre of Bahraini college graduates every year, we are recruiting very able and promising Bahraini men and women.

Austin Rudman Partner, Ernst & Young Middle East

34 35 INDUSTRIAL SERVICES grown. Furthermore, Bahrain’s labour agency, Tamkeen, is Bahrain has steadily attracted investing in improving the skills industrial services companies of the workforce in specific areas looking for a business friendly base such as aeronautical maintenance in the Middle East. engineering. COMPETITIVE ADVANTAGE Low costs and excellent Bahrain’s competitive costs, access location at the centre of the GCC The low costs of labour, industrial common market and growing land and electricity add to the skills base make it an attractive attractions of Bahrain for industrial base for regional industrial services companies. services companies. Furthermore, we provide duty-free For industrial services companies access not only to GCC states seeking a base in the region in but also to the countries with order to provide its products to which we have bilateral trade and local markets, Bahrain is a highly economic agreements, including attractive base. the United States, China, France, For companies that use aluminium, India, Singapore and the UK. Our Bahrain is home to Alba, one of the excellent road, air and sea links world’s largest aluminium smelters, complement these agreements. producing the highest grade material. THE OPPORTUNITY This creates significant Across the Middle East, the demand for industrial services is growing in opportunities in aluminium line with the expansion of aerospace and automotive sectors. For example, component manufacturing. the size of the region’s passenger aircraft fleet is expected to almost treble Our Kingdom has consistently led by 2028,31 and many of the components for these planes will be built the Middle East in the automotive within the region. There are specific opportunities in maintenance repair sector. overhaul, manufacturing and training.

We now have significant expertise SUPPORTIVE ENTITIES and skills in the sector, especially • Bahrain Chamber of Commerce & Industry in motor sport, high performance - www.bahrainchamber.org.bh car manufacturing and aluminium component manufacturing. • Bahrain Investors’ Centre - www.moic.gov.bh

As more industrial services • Bahrain International Investment Park - www.biip.com.bh companies have based themselves in Bahrain, so our skills base has

INDUSTRIAL SERVICES COMPANIES ALREADY IN BAHRAIN

Alstom, Bexair, GE, MENA Aerospace, MTQ Corp, Rizon Jet, Siemens, Singapore International Airlines Engineering and Yokogawa. 36 31 Airbus Global Market Forecast 2009-2028. 37 PROFESSIONAL SERVICES Some of the lowest costs in the THE GLOBAL RECESSION HAS NOT Gulf for staff and office costs are a HAD AS MUCH OF AN IMPACT HERE Given the large financial services further advantage for professional base and diversity of other clients RELATIVE TO WESTERN DEVELOPED services firms. across the Gulf, Bahrain has COUNTRIES. INDEED, WE HAVE long been a home for leading And, with the largest financial SIGNiFICANT INVESTMENT PLANS professional services firms in services centre in the Gulf, we have the Middle East. established domestic demand for BASED ON THE FACT THAT GDP law, accountancy, management COMPETITIVE ADVANTAGE GROWTH ACROSS THE MIDDLE EAST consultancy, marketing services REGION WILL REMAIN IN POSITIVE Bahrain has become a service and human resources firms over centre for other Gulf markets many years. Additionally, our TERRITORY. (especially Saudi Arabia). No proximity to Saudi Arabia has other country has our advantages encouraged engineering services Austin Rudman Partner, Ernst & Young Middle East of cultural neutrality, language, firms to base themselves here. physical proximity, skilled labour, THE OPPORTUNITY Ernst & Young’s regional headquarters have been based in low operating costs, favourable Bahrain for 80 years. Today, they oversee more than 16 offices legal environment and high Rapid and sustained development, across 13 Arab-speaking countries, stretching from Libya to concentration of financial services. particularly in financial services Oman, growing at approximately 30% every year. and Saudi Arabia’s oil and gas Our strategic location is a markets, are creating abundant particular advantage, with most of client development opportunities the key business and population for professional, creative and centres only an hour’s journey business services firms. away. This is why Ernst & Young decided in 2009 to move its global SUPPORTIVE ENTITIES energy headquarters from Houston, • The Bahrain Management Texas to Bahrain. Furthermore, Society Bahrain’s reputation for cultural neutrality and skilled people means our citizens are accepted, and respected, across the region - giving ‘people’ businesses an advantage.

PROFESSIONAL SERVICES FIRMS ALREADY IN BAHRAIN

AT Kearney, CB Richard Ellis, Deloitte, Ernst & Young, Freshfields Bruckhaus Deringer, JWT, KPMG, McKinsey & Company, Norton Rose, PricewaterhouseCoopers and Roland Berger.

38 39 EDUCATION & TRAINING Bahrainis with the education and THE OPPORTUNITY skills needed to contribute to Bahrain is strategically positioned In Bahrain and across the Gulf Bahrain’s economic transformation. at the heart of the region to there is a drive to improve become a centre of excellence for And, in 2009 we established a education and skills as education and learning. new independent body to ensure governments strive to diversify quality in education and training, their economies. COMPETITIVE ADVANTAGE the Quality Assurance Authority for This is creating opportunities Education and Training (QAA). Historically, Bahrain has been both for broad academic the regional leader in education. establishments and specialist Private education and Today this heritage means not only training organisations. training that Bahrainis value education SUPPORTIVE ENTITIES and training but also that it has a Against this background, reputation for quality learning. private educational and training • Ministry of Education establishments have thrived. - www.moe.gov.bh In Bahrain, we take pride in There are 14 universities in our having been the first Gulf country • Ministry of Labour Kingdom, 13 of them private, to establish a state-funded - www.mol.gov.uk and 30 private schools offering school system. We continue to curricula from the UK, US, France, • Tamkeen - www.lmra.bh be a regional thought leader in Japan, Pakistan and India. These education, hosting a number of • QAA - www.qaa.bh are complemented by education specialist conferences that attract management and consulting leading educationalists from companies, and vocational training around the world. As the entire centres. Gulf region invests heavily in education, it is natural that Bahrain Some of the budget assigned is considered a centre of learning. to Tamkeen, the labour agency, is available for private sector In spite of this, we still recognise education and training. Tamkeen is the need to do more. Bahrain is a focusing on filling skills gaps within youthful country, and education is our economy. vital to our future. We are building new local schools, international Finally, in areas where we have schools, universities and vocational strength such as Islamic finance, training centres. For example, there are opportunities to train the Bahrain Polytechnic is a individuals from other countries. new tertiary education institute committed to providing young

EDUCATION FACILITIES FIRMS ALREADY IN BAHRAIN

In addition to the University of Bahrain, there are many regional and international educational establishments. These include but are not limited to: DePaul University (United States), Gulf University, New York Institute of Technology, Royal College of Surgeons in Ireland and University of Strathclyde. 40 41 TOURISM New developments like Bahrain THE OPPORTUNITY Bay, City Centre Mall, Al Areen, Bahrain is a growing tourist centre. Tourism is expected to continue Amwaj Islands, Durrat Al Bahrain Many of the world’s leading tourist to grow in Bahrain. Within leisure and the Riffa Views golf resort are groups are already here, and tourism, there are opportunities for opening Bahrain to a wider market. we are attracting more business boutique hotels, resorts and theme For example, the billion-dollar Al tourism. parks. The increasing diversity of Areen development includes the Gulf economies will also create COMPETITIVE ADVANTAGE Banyan Tree Desert Spa and Resort opportunities for conference and the ‘Lost Paradise of Dilmun’ With a cultural heritage that is companies. unique in the Gulf, a naturally Water Park, widening our appeal as convenient location and excellent a family-friendly destination. SUPPORTIVE ENTITIES

hotels, we offer a strong proposition Business tourism • Ministry of Culture & for organisations seeking to attract Information – Tourism Affairs leisure and business tourists alike. We have a thriving Meetings, Incentives, Conferences and • Bahrain Chamber of Blessed with 33 islands, a Exhibitions sector, which ran at full Commerce and Industry cosmopolitan capital city, an occupancy in 2008 and 2009. The Tourism Committee attractive, liberal lifestyle and a large number of hotels means there rich history and culture, Bahrain is are sufficient facilities for even the LEISURE COMPANIES both a regional and world tourist ALREADY IN BAHRAIN largest conferences. When the destination. @bahrain development is complete Attracted by the potential of projects like these, more and We are uniquely attractive in the it will provide 145,000 square more international names are Gulf for our contrasting modernity metres of flexible exhibition and coming to Bahrain, such as and cultural heritage. From convention space, with the capacity Four Seasons, Intercontinental, designer fashions in Moda Mall to to hold more than 5,000 delegates Kempinski and Renaissance. the traditional souk in Manama, the and up to 30,000 visitors daily. They join leading hotel groups already established here, modern architecture of the World Set for growth like Ritz-Carlton, Sheraton, Trade Centre and the Bahrain Radisson, Novotel, Marriott and Financial Harbour, to the 15th In 2007, we attracted 8.7 million Banyan Tree. Century Arad Fort and Bahrain Fort business and leisure visitors.32 In - once the capital of the ancient the medium term our growth is Dilmun civilization, and now a likely to continue, with the number UNESCO World Heritage site of international tourists expected to dating back to 2200BC. increase by 6.7% by 2010.33

BAHRAIN HAS A REPUTATION IN THE GCC AS A LIBERAL YET FAMILY-FRIENDLY DESTINATION.

Oxford Business Group, 2009

32 Bahrain Central Informatics Organisation. 42 33 World Trade Organisation. 43 RENEWABLE ENERGY Healthcare & Medical University of Bahrain, SUPPORTIVE ENTITIES Pharmaceuticals and are reinventing our existing Renewable energy is a priority • Ministry of health King Hamad General Hospital as a for Bahrain as we transition away With a reputation for superior - www.moh.gov.bh teaching hospital. from hydrocarbons towards a more healthcare, Bahrain both offers • National Authority for Health sustainable future. high-quality medical facilities for its Health tourism Professions & Services citizens and is becoming a regional COMPETITIVE ADVANTAGE We are now opening a series of destination for health tourism. • Bahrain Medical Society healthcare resorts, seeking to attract As an island nation, Bahrain has an - http://bms.bh COMPETITIVE ADVANTAGE wealthy health tourists from across ample supply of solar, wind and marine the Middle East who cannot find • Bahrain Nursing Society energy. Bahrain has a strong track record in adequate treatment at home. healthcare, with the highest number The region is examining renewable of doctors and nurses per capita in On our northern coast, near FACILITIES ALREADY energy as a matter of priority and the Gulf.35 Muharraq, two new healthcare IN BAHRAIN investing heavily in renewable and resorts are opening their doors. green energy. Improving the quality of healthcare 21 hospitals (1 general, Dilmunia, inspired by our ancient 1 psychiatric, 1 geriatric, is a critical policy challenge for We are keen to attract foreign investment Dilmun civilisation, will have a mix 5 maternity and 13 private) with governments across the GCC, with in renewable energy to build our of specialist clinics, hospitals, spas, two more under construction. the population growing quickly and generating assets for the future and are residential, shopping and leisure expected to reach 80 million over looking for innovative companies to centres. Bahrain Health Oasis, the next two decades. take leadership positions in this meanwhile, will be centred on: the growing sector. While in a stronger position than RSCI Medical University of Bahrain, most due to its better healthcare the Oasis Private Hospital and the Illustrating the size of investment facilities, Bahrain is nonetheless King Hamad General Hospital. required, the International Solar not immune from the difficulty Energy Society calculates Bahrain will Health insurance of meeting rising demand for need to spend approximately $900 healthcare. Not only is our In order to help fund healthcare, million in wind and solar power over population rising but also the our government is now introducing the next decade to meet growing incidence of lifestyle related compulsory health insurance for demand for energy.34 diseases such as diabetes and non-Bahrainis. This will stimulate THE OPPORTUNITY obesity is on the rise. considerable growth in the provision of private healthcare. Bahrain has a clear need for investment One of the greatest challenges to in renewable energy in order to meet its healthcare provision across the THE OPPORTUNITY future energy requirements. Middle East is the shortage of qualified The expansion of Bahrain’s medical staff. Yet we have the highest SUPPORTIVE ENTITIES healthcare sector is creating number of both doctors and nurses. opportunities for specialist • Electricity and Water Authority For 30 years, we have had a close healthcare providers in areas relationship with the Royal College ranging from oncology, to of Surgeons in Ireland (RSCI) long-term care, to alternative and half of all surgeons working treatments. Spending on in the Kingdom were trained in pharmaceuticals is also rising 34 Tehran Times, 05 February, 2009. 35 Source: World Health Organisation. Ireland. We have now established across the region, creating a new medical university, the RSCI opportunities for drug companies.

44 45 Key Services

How the Initial information gathering

• the EDB will provide you with Economic information including sector-specific background, cost comparisons, tax and regulatory details, and case examples Development Board of other companies in your sector. can help • many of these are available on our website, and can be downloaded.

Detailed assessment Bahrain has the highest foreign attract direct investment, and • We have a number of sector-specific investment performance ranking for marketing the Kingdom of specialist teams who are available to of any Gulf state.36 Bahrain abroad through our help understand your detailed business embassies and a network of needs. There are many reasons for overseas offices in Japan,H ong this: our strategic location, Visiting Bahrain Kong, India and the UK. our infrastructure, our human • all investors will want to see the resources. But perhaps the most So what does this mean locations they are considering before important is that it’s simply for you? making a final choice. We really encourage you to visit Bahrain, check easier to do business here. We offer a practical facilitation our data, and test your initial views. We Chaired by His Royal Highness, service for first-time investors, are confident you will be convinced. Prince Salman bin Hamad Al and ongoing support to • your dedicated EDB team will prepare Khalifa, the Bahrain Economic businesses already here. a tailored visit programme that will Development Board (EDB) is enable you to meet the right people We can act as your first point of a dynamic public agency with in both the public and private sectors, contact in the Kingdom. and generally to get a feel for just how an overall responsibility for business-friendly Bahrain is. formulating and overseeing the We do our best to understand economic development strategy your objectives and respond to Making it happen of Bahrain. them efficiently, providing all • We will assign you a single point the information you need to set of contact to help you set up your We have strategic objectives operations quickly and efficiently. up your business quickly and for change and growth, laid out smoothly. • We will help you through the relevant in our comprehensive Vision registration and licensing, and liaise 2030 reform programme that In short, we are here to help you with Government ministries and addresses the economy, the relevant organisations. Welcome to Business labour market and education. Friendly Bahrain. Ongoing support We are also responsible for It does not stop there. One of the things creating the right climate to that makes Bahrain different is the level of support you receive after you have set up your business. After all, Business Friendly Bahrain is not just about bringing you here, 36 World Investment Report, published at the United it is about helping you succeed. Nations Conference on Trade and Development, 46 September 2008. 47 Contacts

For investment opportunities, call us on +973 175 89 969 or email us at [email protected]

For Financial Services enquiries, call us on +973 175 89 870 or email us at [email protected]

Business hours are Sunday through Wednesday 8am to 5pm, and Thursday from 8am to 2pm (GMT +3 hrs)

For more information on investing in Bahrain please visit www.bahrain.com

For more information on the Bahrain Economic Development Board and how we can help you please visit www.bahrainedb.com

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