An impressive investment choice

Bahrain today is an exciting place in which to invest. The approval of the National Action Charter in February of this year and the International Court of Justice Ruling over the Hewar Islands in March have both worked to markedly improve the political atmosphere in Bahrain. This in turn only adds to the already positive, business-friendly climate in the country.
Regarding the benefits to Bahrain of having popular legitimacy brought to the Charter through the referendum, Hassan A. Radhi, Senior Partner, Hassan Radhi & Associates, stated, “We are taking a very important step in the democratic process by having a legislative body laying down the laws. We are now moving towards a sort of forum where people may practice their freedom to say what they want within certain limits and this is a big move forward for Bahrain.”

Ali Salman Thamer, Head of Listing & Companie’s Affairs Department, Bahrain Stock Exchange Hassan Ali Radhi, Attorney & Legal Consultant, Hassan Radhi & Associates

International surveys have consistently placed Bahrain among the freest economies in the world. The Heritage Foundation Report 2000 produced by the Fraser Institute rated Bahrain the ninth freest economy in the world. The Economic Freedom Index, produced by the CATO Institute, ranked Bahrain as the most free Arab economy and twenty-eighth freest internationally.
Bahrain joined the General Agreement on Tariffs and Trade (GATT) in 1993 and assumed membership in the World Trade Organization (WTO) in January 1995.
Bahrain has been a major participant in the ongoing U.S.-GCC Economic Dialogue, begun in 1985. The Dialogue, between the United States and the six Gulf Cooperation Council countries, is the primary vehicle through which the GCC and the United States discuss trade and investment issues. The Governments of the United States and Bahrain signed the first Bilateral Investment Treaty in the GCC region in 1999, codifying the rights of U.S. investors in Bahrain.
According to Bob Dastmalchi, Acting Managing Director of Chevron’s Middle East/North Africa region, "Bahrain is going to play a vital role in the region. The fact is, it is an extremely attractive business environment. That is something that we have always said. It is a vote of confidence in Bahrain that we have our regional office here. It has the right infrastructure: airport, schooling, housing, telecommunications. It has a very expatriate friendly environment. It is a very tolerant society. A very politically, economically, socially stable country, under the leadership of His Highness the Amir."
Through the regulations it has put in place, Bahrain has shown itself as a nation eager to do business with the world. Bahrain applies no personal, corporate, withholding or VAT tax. No customs duties are levied on imports of raw materials, semi-finished commodities brought for further processing, imports required for development projects, machinery for manufacturing or on goods imported for re-export.
Goods from Bahrain also have duty-free access to the other five GCC nations under certain conditions, and with the Gulf Cooperation Council working to have a unified Customs Union spanning the GCC within the next four years, an added incentive will exist for corporations to locate in Bahrain.
According to Ali Salman Thamer, Head of Listing and Companie’s Affairs Department of the Bahrain Stock Exchange, "The Government of Bahrain has made great leaps towards opening up the capital market for foreign investments. GCC nationals can now own up to 100 percent of shares of Bahraini companies, while non-GCC nationals can own up to 49 percent, with the Minister of Commerce and Agriculture having the power to approve a higher percentage of ownership in cases where he sees fit. A stable currency rate, free repatriation of capital and profits and the implementation of the disclosure standards by the Bahrain Stock Exchange provides a healthy and attractive atmosphere for foreign investments in Bahrain. U.S. companies can enjoy favorable investment opportunities on the Bahrain Stock Exchange."
In terms of GCC market access, Bahrain is very favorably positioned, in a literal sense. Ebrahim Hassan Salman, Director of Maritime Affairs at the Mina Salman Port, stated that, "Bahrain has a unique location and many advantages. This is the centralized location in the Gulf, with its direct link to a densely populated area in the Eastern Province of Saudi Arabia. The Kingdom is easily accessed via the King Fahd Causeway, which is about 30km. From there you also have land access to Kuwait and beyond." Altogether, the market in the GCC region is 100 million strong, which will cause any potential investor in the region to take a serious and favorable look at Bahrain.
A key component of Bahrain’s strategy to bring in ever more foreign investment is the construction that is now underway of the industrial zone which will be connected to the new Shaikh Khalifa Bin Salman port facility in the Hidd industrial zone on Muharraq island. The port will be state-of-the-art, and capable of handling very large container ships. The industrial zone will be able to accommodate a wide range of companies. According to Captain M.Y. Al-Mahmood, Director General of the Mina Salman Port, a major incentive for companies to locate in the industrial area is that Bahrain offers "the best service and least paperwork of all ports in the region, focusing on a customer-friendly and customer-oriented facility."
Another major plus for companies looking to have an investment in Bahrain is the mature and highly developed legal framework present in the country. The nation’s legal community takes pride in the transparency that is mandatory in all commercial operations in Bahrain.
Bahrain International Airport is the headquarters of Gulf Air, in addition to being the hub of aviation services in the region, with a sophisticated air cargo handling operation.
The telecommunications system, under the stewardship of Bahrain Telecommunications Company (BATELCO), is the most advanced in the region, and one of the best in the world, providing companies in Bahrain easy access to business centers throughout the world.
Through the leadership of its leader, His Highness Shaikh Hamad Bin Isa Al Khalifa, Bahrain has positioned itself well as a good investment for corporations around the world interested in being a force in this region.

As Saleh H.A. Hussain, General Manager, The Saudi National Commercial Bank, states, "The business environment is supported by strong regulation and laws that comply with international standards. All of these are good ingredients and prerequisites for attracting foreign investment, and we are already seeing a lot of the Gulf region as well as international investors putting money into Bahrain, and I am sure that we will see more of it. As a Bahraini I feel proud that we are setting a good example for the GCC countries."
And to sum up the business climate in Bahrain at present, Dr. Said Sa’ad Al Martan, CEO of Shamil Bank of Bahrain notes, “Bahrain has the required infrastructure, an efficient regulatory environment, and a pool of well trained human resources from local and expatriate staff."