The business landscape in Bahrain is constantly evolving; through economic policy reforms, simplification of business processes, huge investment in physical and digital infrastructure and enhancement of regulatory procedures. The country is focusing on non-oil futuristic target sectors for increased competitiveness and sustainability and attracting foreign investment through Bahrain company incorporation in the areas of opportunity identified by economic indicators.
A recent study made by one of the oldest and leading management consultancy firms revealed that this island gulf country has registered the highest foreign direct investment per capita amongst the GCC nations with an FDI inward stock of 92% in terms of national gross domestic product (GDP) bearing testimony to Bahrain’s relentless efforts to diversify the economy and attract foreign investments.
‘Bahrain’s national strategy is pivoting to become more sustainable and competitive by investing in future-defining oil-proof sectors, as the Covid-19 pandemic underscored the need for economic growth through the accelerated uptake of innovation and digital economy,’ the management consultancy highlighted.
A leading consulting firm in its recent report titled ‘Situating the Kingdom of Bahrain in a Future World: Opportunities for Foreign Investment’ noted, ” As a result, Bahrain has amplified plans for economic diversification through Foreign Direct Investment (FDI), backed by several competitive advantages that make FDI attractive”.
The opportunities and challenges facing Bahrain in consideration of economic activities in the neighbouring countries and increasing technology-oriented economies are highlighted in this report. Insights on how the country can overcome these challenges to become a global economic powerhouse are also noted in this report.
“Despite being a smaller market in regional terms, the kingdom’s highly favourable investment environment is clear for all to see,”
“The country has the infrastructure and potential to attract robust FDI across various emerging sectors in the short, medium, and long term, with projects holding high success rates in areas such as renewable energy, health management, financial services, cloud computing, and technology incubation,” the report emphasized.
“Challenges always accompany opportunities, and disruption of varying degrees will continue casting uncertainty as national ambitions are pursued in the years ahead. However, Bahrain is favourably positioned to not only capitalise on FDI openings but also create the same vibrant future that the kingdom’s leadership and wider business community both envisage,” the report noted.
“As Bahrain prepares to move forward, driving innovation, establishing new partnerships with neighbouring countries, and utilising existing resources are viable, effective avenues for overcoming the most difficult challenges at hand,” said Mr Buelow.
“Technology will certainly be a key enabler of any positive eventualities and central to all future economic activities. Consistent implementation over the long haul will be key to success,” the partner at ADL remarked.
The report sheds light on How to start SMEs in Bahrain and realize the economic objectives by utilizing the country’s specific competitive advantages including low cost of doing business, full foreign ownership, skilled local workforce, high responsiveness of the government, series of global trade agreements with 22 FTAs, 34 FIPAs and 40 DTAAs.
