Bahrain is a relatively small but hugely prosperous economy, which has experienced steady growth. It has one of the most liberal business environments in the Middle East. Because it is very close to Saudi Arabia, Bahrain shipping companies can enable you entry into that market. As opposed to the rest of the region, trending export demands in Bahrain and its costs are considerably lower and manufacturing is also less costly.
Benefits for businesses exporting to Bahrain include:
- Good communication links
- Directs into Saudi Arabia via Causeway
- The most liberal tax regime in the Gulf
- 100% foreign ownership of business assets and real estate allowed
- with No ‘free-zone’ restrictions
Strengths of the market include:
- Firstly, you can benefit from competitive operational costs
- Secondly, there is a well regulated financial services sector
- Thirdly, you will find advanced aircraft parts logistics services
- Additionally, there are dedicated industrial zones
- Hire an educated and skilled local workforce
- High quality of life for foreign residents recorded by HSBC Expat
- Finally, there’s an option for an explorer survey
Trending export demands in Bahrain make is relatively easy to do business. However, there are a number of challenges including:
- Delays in payment happen constantly
- Bureaucracy within government agencies is pretty stifling, especially for getting licenses
- Along the same lines, you will need to employ a certain quota of Bahrainis to comply with these rules, which aim to improve local employment prospects and reduce reliance on imported labor
- Lastly, government documentation is in Arabic!
Export demands in Bahrain have increased steadily over the past few years with a 5-year compound growth rate of 3.4%. Furthermore, the economic climate is very positive. Additionally, Bahrain customs clearance remains convenient. Gross Domestic Product (GDP) grew by 4.7% in the last year.
Growth in trending export demands in Bahrain comes primarily from the oil sector which is also the largest contributor to government revenues. The oil and gas sector accounts for:
- 20% of GDP
- 87% of government revenues
- 73% of export income
Other positive measures for growth include:
- New infrastructure developments
- Free trade agreements
- There is a strong development of an already solid banking system
- Bahrain is a member of the Greater Arab Free Trade Area (GAFTA) giving it duty-free access throughout all GAFTA states.
Bahrain has free trade agreements with:
- European Free Trade Association (EFTA)
The taxation system
Bahrain has the lowest corporate and personal taxes in the GCC. There are very few indirect taxes and no:
- personal income tax
- a wealth tax on capital gains
- withholding tax
Trending export demands in Bahrain: Customs rules and regulations
1. Trending export goods that require special documentation in Bahrain:
- Above all, drugs and medicines
- Food products
- Live animals
- Meat, poultry, animal products, and by-products
- Special permits may also be mandatory for certain products, for example special breed horses, armaments, and insecticides.
- In conclusion, you should contact Bahrain Customs if you have any documentation inquiries.
2. Business climate
English is widely spoken throughout the country. Although it’s common for correspondence to be in English, Arabic often takes precedence within the government. In addition to that, Bahrain is the most liberal of GCC states and is tolerant of all faiths. Finally, Islam is the national culture and you should respect it. Note that the working week is Sunday to Thursday.