Investment In Bahrain

Investment in Bahrain

Posted: 15 June, 2022
Author: Zainab Khalifa
Time to Read: 4 Min
No. of Words: 502

Bahrain may be the smallest country in the GCC but that does not restrict the country from attracting international investors or creating a competitive business environment. The government is always working on ambitious projects and taking steps towards the Economic Vision 2030. The Bahrain Dinar (BHD) is also the second highest valued currency after the Kuwaiti Dinar. 

Let’s answer some common questions and make a reality check to see if it’s worth investing in the Kingdom of Bahrain.

Is the location apt for business?

Definitely. Bahrain is situated in the heart of GCC with easy access to the Middle East economy worth USD 2 trillion. You can easily travel between these countries by road, air or sea. After commencing the operation of Khalifa Bin Salman Port in April 2009, Bahrain has also become a major transshipment center. This has helped the transportation of goods through sea become easier than ever. 

Bahrain also has fastest access to one of the major markets and economies in the GCC, which is Saudi Arabia. 

How easy is it to do business in Bahrain?

Bahrain has business-friendly rules and allows 100% foreign ownership of business assets. The minimum capital requirement rate has been reduced which has led to lower operational and establishment costs. Bahrain also stands at the fourth position in MENA in terms of global connectedness.

With the involvement of RERA too, the rules are very organized and streamlined making it easy for investors. The government has also developed an online portal called Sijilat for seamless business registration processes.

Which businesses can thrive in Bahrain?

Bahrain is the only GCC country that promotes business freedom across sectors. However, business sectors such as Financial Services, Manufacturing, Logistics, Tourism, Real Estate, Healthcare, Education, and Technology & Innovation have an edge over the others.

In addition to this, over USD 32 billion is being used for infrastructure and real estate developments which are already at the verge of completion. This will definitely encourage more and more investors into the country.

What are the upcoming real estate and tourism projects of Bahrain?

As of the second quarter of 2021, Bahrain has 116 real estate projects under progress which has a total worth of BHD 260. Some of the major projects are:

  • King Hamad Causeway – In addition to the existing Saudi-Bahrain Causeway, one more causeway is being constructed and 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 fair ROI but it largely depends on what kind of project you invest in. The projects handled by Royal Ambassador and Kooheji Developers gives you a decent average ROI of 6 – 7%, regardless of the market condition. If you have invested in a reputed project, the buy-back options that you get will be good too.

The Bahrain economy is thriving and continually being recognized globally for the kind of developments being made. If you are looking for an opportunity to invest, Bahrain will never disappoint you.

Summary:

 

  • Bahrain Dinar (BHD) is the second highest valued currency after the Kuwaiti Dinar. 
  • Located in the heart of GCC, Bahrain has easy access to the Middle East economy worth USD 2 trillion
  • Khalifa Bin Salman Port is one of the biggest transshipment centers of Bahrain
  • Easy access to one of the major economies in the GCC, Saudi Arabia. 
  • Bahrain government has Business-friendly rules and allows 100% foreign ownership of business assets
  • Bahrain has very organized business rules and stands at fourth position in MENA in terms of global connectedness.
  • Business registration processes can be easily done through a government app called Sijilat
  • Business sectors such as Financial Services, Manufacturing, Logistics, Tourism, Real Estate, Healthcare, Education, and Technology & Innovation have an edge over the others
  • Bahrain has 116 real estate projects under progress which has a total worth of BHD 260. 
  • The Bahrain government offers a fair ROI and buy-back options
  • Regardless of the market condition, the projects handled by Royal Ambassador and Kooheji Developers gives you a decent average ROI of 6 – 7%
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