Brilliant Bahrain

The Kingdom of Bahrain has an economy that is considered to be one of the fastest growing in the region. In an effort to diversify its economy from oil, Bahrain has established a dynamic financial centre, attracting nearly 380 well-known financial institutions.

In the arena of international politics, the kingdom has secured a strong position by establishing strong alliances with the likes of the US and UK. The kingdom has signed a free trade agreement (FTA) with the United States. Internally, Bahrain has been promoting democracy by holding open elections since 2006; even the first female representative was elected to join the parliament before any other GCC country.

The kingdom has been focusing on five sectors, namely, financial services, information technology, healthcare & education, tourism and telecommunications. Together with its open economy policy, business transparency, attractive legislation system and lucrative location as a neighbour to Saudi Arabia, Bahrain has been successful in attracting multinational companies to establish bases and headquarters to increase employment and expatriates. In 2005 Bahrain recorded the highest nominal Gross Domestic Product (GDP) growth in its history, of 19.7%.

This was driven by an improved performance in two sectors; finance and most importantly, the real estate/development/construction sector.

Like Dubai, Bahrain's real estate boom is driven by the nation's increasing wealth generated by sector-focused economic policy and population growth. This is mainly driven by expatriate inflow. Unlike Dubai, Bahrain has enjoyed the benefit of its big neighbour Saudi Arabia.

The largest economy in the Middle East, Saudi Arabia is a crucial market for many multinational companies although, due to its conservative nature, many Westerners working in Saudi Arabia tend to choose Bahrain as their home. For many, commuting from a more liberalised and tolerant Bahrain and using the 25km causeway to Saudi Arabia is preferable.

The King Fahd causeway has been a driving force in adding demand to the thriving Bahrain real estate market.