Bahrain focus

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LINKED: Bahrain has invested billions in its transport links.

We look at some of the plus points and pitfalls of doing business in Bahrain.

While one of the smallest countries in the world, the island of Bahrain has been economically significant for many years, hence the number of people who choose to migrate to its shores. Like the other GCC countries the tiny island spent much of the 20th century diversifying away from pearling, fishing and into an oil-based economy.

Today sees the nation changing again, as tax incentives make the country a haven for the offshore banking industry, as well as having a developed construction industry and attractions such as a fully-fledged F1 track. In fact, the importance of taking advantage of all revenue streams was underlined in the National Economic Vision 2030 plan, which was launched last year, just as the recession began to bite.

Unfortunately the downturn did hit Bahrain very hard, with one report putting the number of shelved projects since last October at around 30%. This obviously has had a drastic effect on both contractors and investors alike – most of whom are waiting for their money.

From our perspective as fleet managers, perhaps the most interesting industry in Bahrain is the transport sector. While other countries still moot the idea of 100% foreign ownership of companies, Bahrain already does it, which has lead to the recent opening of a new industrial area, as well as a new seaport capable of handling the largest ships.

Steen Davidsen, manager of APM Terminals Bahrain said “Bahrain itself offers benefits for businesses, including a number of free trade agreements, a liberal tax regime and the allowance of foreign ownership. Operating from the port makes clear economic sense and being 40% closer to the upper Gulf ports saves money for shipping lines.”

“Bahrain has invested billions of dollars to develop the best transport links in the region, incorporating road, sea and air.”

He added: “Our strategic location can provide companies with road access to the booming economies in the Gulf, supported by the 25km causeway to Saudi Arabia and the forthcoming Friendship Causeway to Qatar, which is scheduled for completion in 2013.”

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