Provided by: Bahrain Economic Development Authority.
Bahrain’s Economic Recovery Plan (ERP), first launched in 2021 to steer the island nation from post-COVID recovery to sustainable economic growth in line with its Economic Vision 2030, prioritizes economic diversification and financial stability through a multi-layered approach that encourages investment across key sectors through key incentives and strategies.
Ultimately, the ERP aims to enhance Bahrain’s international competitiveness and maintain the country’s position as an attractive investment destination.
A prime example of a government incentive designed to encourage increased investment in Bahrain, the Golden License essentially provides significant benefits and streamlined services to impactful investment projects in Bahrain, and is applicable to both foreign and locally owned companies. For a project to qualify for the Golden License, it must either exceed $50 million (BD18.8 million) in investment or demonstrate the creation of more than 500 jobs. Granted projects will enjoy benefits such as priority allocation of investment land, streamlined access to government services including approval of business licenses and building permits, necessary support from Bahrain Labour Fund, Tamkeen and Bahrain Development Bank, and support from a designated account manager at the Bahrain Economic Development Board (Bahrain EDB).
Since its launch in April 2023, golden licenses have been granted to five investment projects undertaken by Citi, Eagle Hills Diyar, Infracorp, Saudi Telecommunications Company and Singapore-based Whampoa Group. Cumulative investment is expected to exceed $1.4 billion and create more than 1,400 job opportunities across the five projects.
Minister of Commerce and Industry Abdullah bin Adel Fakhro noted that “Bahrain has an attractive and flexible investment environment as well as a progressive legal system, making it one of the top investment destinations in the world.”
Bahrain EDB CEO Khalid Humaidan added that the initiative was “a successful public-private partnership that has produced a bespoke solution for investors, providing them with fast approvals and several capabilities and facilities that will enable them to secure a global base from Bahrain.”
Facilitating over $30 billion in investment
More than $30 billion in strategic project investments have been allocated across key focus areas with the aim of increasing employment opportunities for Bahrain’s people while ensuring the country’s long-term stability and competitiveness.
In addition to several tourism, communications and transport projects, projects include a 109km metro network covering the entire country, and the Northern Road Project, a transport corridor along the north coast.
A significant development for Bahrain’s industrial and logistics sectors, the American Trade Zone will begin construction in 2022, allowing American manufacturers and companies to operate as if they were in the United States, with easier access to Khalifa bin Salman Port, the King Fahd Causeway and Bahrain International Airport. Businesses within the zone will be 100 percent foreign-owned, and will also benefit from specialized customs clearance solutions and duty exemptions.
Another exciting logistics opportunity is the King Hamad Causeway project, scheduled for completion in 2028 as a second bridge connecting Saudi Arabia and Bahrain. The project will include a railway line and will be integrated into the Gulf Cooperation Council (GCC) Railway Project. The railway line will be built to connect the GCC countries, further facilitating regional trade, supporting the growth of local industries and providing new job opportunities. Additionally, Bahraini businesses will benefit from easier access to the largest and fastest-growing market in the Middle East and North Africa.
Team Bahrain’s approach
Underlying Bahrain’s success is an essential understanding that it takes a concerted effort between government and business to create an innovative environment that can produce local success stories with global impact.
Central to this is the Team Bahrain approach, which encourages government agencies to work closely in alignment with the private sector to create solutions for investors and entrepreneurs looking to set up shop in Bahrain.
As an investment promotion agency, Bahrain EDB tends to be the first point of contact for investors in Bahrain, acting as the main interface between investors and key actors in the public and private sectors, and designing and constituting appropriate task forces for each investment project. Whether supporting key industry assessments, advising on processes and requirements, or providing insights on where to set up a global headquarters, Bahrain EDB’s team supports investors from start to finish throughout their journey.
For example, if an insurance company wants to set up a base in Bahrain, the Bahrain EDB will engage the Central Bank of Bahrain, negotiate with potential landlords for office space, and consult with Tamkeen to identify, train and mobilize the right talent for the project.
When Mondelez decided to expand to a $90 million factory in Bahrain in 2018, the Bahrain EDB worked with the government to find a suitable site for the megafactory within six months.
Investing in talent: Bahrain’s workforce combines local talent with international expertise
Citi took many things into consideration when deciding on the country for its Global Technology Hub, including conducting rigorous technical coding tests and comprehensive interviews to find the right talent. Bahraini talent generally outperformed other competitors in programming, with the highest pass rate for specialized tests.
Competitive operating costs, coupled with the support of Tamkeen grants and subsidies towards national salaries and training, made Bahrain a natural choice. The Global Tech Hub, which opened in September 2021, is on track to deliver on its pledge to employ 1,000 Bahraini programmers in its first decade of operations. Currently, 22% of Bahrainis working at the Hub are women, more than any other city tech hub around the world.
“This is the type of project that Bahrain EDB hopes to replicate not only in the financial services sector, but in other high-priority industries as well. Ultimately, Bahrain is prioritizing the creation of highly skilled jobs, especially in niche industries, and investing heavily in providing training for workers, which will further strengthen Bahrain’s international standing and ensure long-term, sustainable economic growth.”
Bahrain is committed to retaining its talent, especially those who have contributed significantly to its community, society and economy. In line with the strategic policy, another initiative recently launched by the government is the 10-year Golden Residency Visa. The visa offers expats and foreign investors the opportunity to reside permanently in Bahrain, with eligibility requirements including proof of a minimum of five years of residence in the country and high-value employment.
Bahrain is keen to encourage foreign direct investment in the Kingdom in line with the ERP, in line with the key strategic projects being implemented and the ongoing regulatory reform package. By 2022, Bahrain had achieved some of the targets outlined in the plan, employing over 29,000 people in the workforce and training over 10,000 Bahrainis.
