A. Facts

Bahrain is an archipelago of over 40 islands of the westerns shore of the Arabian Gulf, strategically located at the confluence of the ancient trade routes between east and west.

Head of State
His Majesty the King Shaikh Hamad Bin Isa Al Khalifa

Government and the Political System
Bahrain is governed by a constitutional monarchy with well defined and separate legislative, judicial and executive bodies.

Economy
The discovery of oil transformed Bahrain economy and brought wealth and prosperity to this island nation. The government, however, realized that oil resources would not facilitate sustainable development in the long term and took steps early on to diversify the economy, resulting in a broad economic base which today includes oil and petrochemicals, manufacturing concerns, banking and financial institutions, and commercial and service based concerns.

Capital
Manama

Population
707,160 (2004)

Language
The official language is Arabic, although English is widely spoken, especially in banking, finance and business.

Religion
Islam is practiced by approximately 85% of the population. Other faiths are openly practiced and tolerated.

Time
GMT + 3 hours

Communications
A full IDD service is available to more that 241 locations. The country code for Bahrain is +973.
A full range of internet access services is available.

Media
There are two English language newspapers published in Bahrain – Gulf Daily News and Bahrain Tribune. What’s on is a colorful monthly magazine covering social and cultural events. International newspapers, magazines and journals can be bought at bookshops and supermarkets. Bahrain has both Arabic and English commercial radio and television stations, as well as access to international satellite TV programming.

Currency
US$ 1 = BD 0.377
The Dinar is divided into 1,000 Fils
Notes are available in denominations of BD1, BD5, BD10 and BD20.

Working Hours
8:00 – 12:30 and 16:00 – 20:00 (Saturday to Thursday). Many shops are open half or full day on Friday as well.

Weekly Holiday
Government offices also close on Friday & Saturday. Many companies also close or open half day on Saturday.

Electric Supply
230 Volts, 50Hz except in Awali where it is 110 Volts, 60 Hz. Bahrain uses UK style 3-pin power outlets.

Water
Tap water is clean and free from contamination. However, for drinking purposes “sweet water” is recommended. This is widely sold by shops in bottles, or can be delivered to home in large containers.

Medical Facilities
Bahrain has good quality modern medical facilities. Treatment by the Kingdom medical services is available to citizens and residents free or at a nominal cost. There are also several private hospitals. Well stocked pharmacies exist all over the kingdom.

Visas
Required by all except national of GCC countries. 72 hours or 7 day visa’s are available at the airport immigration desk in King Fahad Causeway. Visas are available at all Bahrain Embassies and Consulates. Extensions are available from Department of Immigration, Manama.

Climate
The Bahrain climate can be generally described as cool winters with sparse rainfall and hot summers with high humidity.

The winter season from December to February is influence by low-pressure systems from the Mediterranean, which travel west into the Gulf and cause periods of disturbed weather. These disturbances are approximately 74 mm per annum. January is usually the coolest month when lowest temperatures are experience, and prevailing winds are North-Westerly.

Between March and May and between October and November the weather is normally warn and dry, with pleasant breezes and many hours of sunshine. The summer season from June to September is generally hot and completely dry, but with a noticeable increase in humidity. Temperatures average 38 to 42 Centigrade and average humidity ranges from 67 to 82%. Initially the weather can be influenced by low pressure over Pakistan which caused dry North-Westerly winds, known locally as Al Barah, to become established. These help keep humidity down and can create more pleasant conditions than in later summer months.  

B. Investment Climate

Situated at the confluence of three continents, Bahrain has developed in recent decades into a modern country that meshes ancient heritage and Middle Eastern Hospitality with high standard of education and advanced communication technology. Business organization in Bahrain benefit from a geography that places them at the continent’s crossroads. Bahrain presets an ideal gateway to the Middle East & North Africa (MENA) region and the rest of the world.

Access to Foreign Markets
Benefiting from Bahrain’s proximity and high caliber human resources, multinational companies setting up operations in Bahrain can draw on the countries favorable trade relations with neighboring, regional and international markets.

Future Regional Market
Bahrain is ideally positioned, both politically and geographically, to capitalize on the development of the peace process in MENA region. Business organizations have incentives to base their operations in Bahrain which offers a competitive vantage point from which to enter neighboring markets. Bahrain is strategically enhancing its economic ties with all the countries with which it has established complete normalized relations. This will ultimately lead to economic and political integration benefiting the region as a whole.

Conducive Investment Climate
With the aim of creative a lucrative and friendly environment for foreign investors, the government offers increasingly attractive incentives such as foreign ownership, tax and customs duty exemptions. Tax exemptions offered by Bahrain are in the higher bracket when compared with other countries of the MENA region.

International investors seeking to diversify their portfolios are offered excellent opportunities in terms of ownerships, customs and income tax exemptions and unrestricted transfer of capital and profits in all sectors. Regional offices and offshore firms are treated on the equal firm with Bahraini firms, and are entitled to the same privileges to local business.

Investment profitability is measured not only in the bottom liner, but also in terms of political security, strategic logistics of location, and abundant supply of skilled workers, and the government’s willingness to reform and modify the investment structure. Bahrain competes and often excels in meeting these key factors. The emerging Bahrain market has yet to be fully exploited, and entrepreneurs will undoubtedly reap high dividends.