Kingdom of Bahrain
- Population:1,607,000
- Capital:Manama
- Official language:Arabic
- Currency:Bahraini Dinar (BHD)
- Government:Constitutional monarchy
- Closed:Friday and Saturday
Bahrain is an island nation in the Persian Gulf, known for its liberal economy and rich cultural heritage. The country was the first in the region to diversify its economy away from oil. Bahrain is famous for its pearls and is a center for Islamic banking. It hosts the annual Formula 1 races, attracting tourists and investors.
Located on an archipelago of 33 islands in the Persian Gulf, between Saudi Arabia and Qatar. The strategic location makes Bahrain an important financial and commercial hub for the region
Located on an archipelago of 33 islands in the Persian Gulf, between Saudi Arabia and Qatar. The strategic location makes Bahrain an important financial and commercial hub for the region
Gasoline is cheaper than water in Bahrain
Bahrain was the first Gulf Arab country to discover oil. The first oil well was drilled in 1931, and a year later black gold began to flow out of the ground, which was very timely, since at that time a crisis broke out on the world pearl market. Over time, this drilling rig turned into a monument, near which tourists like to take pictures. Nearby there is an Oil Museum, which stores rare archival photographs, rock samples and even a working oil platform. Despite the fact that today oil reserves in Bahrain are limited, a liter of gasoline is cheaper than a liter of water - 150 versus 200 fils ($0.40 and $0.50).
Economy
Bahrain has one of the most diversified economies in the Gulf. The country began its transition from an oil-dependent model in the 1960s, developing its banking and financial sector, which made Bahrain an important financial hub in the region.
The country's competitiveness, both regionally and globally, is based on an open economy, liberal policies, and the encouragement of private enterprise. The country allows the creation of companies in which foreign capital will be 100%. There is also no income tax, and the profit tax is provided only for companies in the oil and gas sector and is 46%. It is important that Bahrain is recognized as the center of all Islamic finance among the Gulf countries.
The country's GDP in 2022 was $ 44.4 billion, an increase of 4.9% compared to the previous year. The oil and gas sector remains important, but its share in GDP has decreased to 18.4%. The financial sector makes a significant contribution to the economy, accounting for 17.5% of GDP. The country ranks 42nd in the Doing Business 2020 ranking, reflecting a favorable business climate. The unemployment rate in 2022 was 1.9%. The government is implementing the Economic Vision 2030 program, aimed at further diversifying the economy and attracting foreign investment.
The country's competitiveness, both regionally and globally, is based on an open economy, liberal policies, and the encouragement of private enterprise. The country allows the creation of companies in which foreign capital will be 100%. There is also no income tax, and the profit tax is provided only for companies in the oil and gas sector and is 46%. It is important that Bahrain is recognized as the center of all Islamic finance among the Gulf countries.
The country's GDP in 2022 was $ 44.4 billion, an increase of 4.9% compared to the previous year. The oil and gas sector remains important, but its share in GDP has decreased to 18.4%. The financial sector makes a significant contribution to the economy, accounting for 17.5% of GDP. The country ranks 42nd in the Doing Business 2020 ranking, reflecting a favorable business climate. The unemployment rate in 2022 was 1.9%. The government is implementing the Economic Vision 2030 program, aimed at further diversifying the economy and attracting foreign investment.
Free Trade Zones
There are several free trade zones in Bahrain.
- Bahrain Logistics Zone (BLZ)Specializes in logistics and re-export1
- Bahrain International Investment Park (BIIP)Industrial zone focused on manufacturing and export2
- Bahrain International Airport Free ZoneFocus on aviation and logistics activities3
- Khalifa Bin Salman Port Free ZoneLocated in the main seaport, suitable for logistics and trading companies4
- Bahrain Financial HarbourFor financial and business services4
Benefits of registering a business in the FEZ:
- 100% foreign ownership
- Exemption from corporate taxes for 10 years
- No restrictions on repatriation of capital
- Simplified registration and licensing procedures
Other types of companies and their registration
1
Limited Liability Company (WLL)
2
Branch of a foreign company
3
Sole proprietorship
4
Representative office
Tax System
- Corporate Tax: 0% for most sectors
- VAT: 10%
- Income Tax: None
- Property Tax: 10% of the rental value for commercial properties
Banks of Bahrain
- National Bank of BahrainLargest commercial bank in the country
- Ahli United BankLeading regional bank headquartered in Bahrain
- Bank ABCInternational bank with a wide network in the region
- Al Salam BankOne of the largest Islamic banks in Bahrain
Bahrain is a promising destination for life and business thanks to its combination of tradition and modern opportunities. This island state has a rich culture, developed economy and an attractive tax system. Bahrain is actively developing infrastructure, offering unique conditions for financial and technological companies, attracting expats and investors from all over the world. Picturesque landscapes, a comfortable climate and a high level of safety make Bahrain also an interesting choice for those looking for a comfortable life and prospects in a stable environment.