Bahrain Logistics Zone (BLZ)

The Bahrain Logistic Zone is located in the heart of the Salman Industrial City in the Al Hidd Industrial area adjacent to the Khalifa Bin Salman Port (KBSP) and fifteen minutes from the Bahrain International Airport (BIA). 

The BLZ has evolved into a regional transshipment hub with highly integrated logistics. They are designed and operated by the Ports and Maritime Affairs Department at the Ministry of Transportation and Telecommunications. They are helpful in delivering goods from the Khalifa Bin Salman Port to various warehouses and support modern logistics infrastructure. There are various benefits of The Bahrain Logistics Zone, such as the pricing norms and world-class services in import, export, re-export operations, etc. 

It requires reduced time for unloading and re-shipping and has a strategic geographical location, providing easy access to GCC markets. Due to these above-mentioned facilities, we can see a rise in the number of Bahrain logistics companies as they provide a niche for businesses to access the Middle East. 

Activities permitted in Bahrain Logistics Zone

It is essential to understand the activities and Bahrain logistic services that are permitted in the zone so that the business owners can ensure legal regulations issued by the authorities. The activities are as follows –

• Logistical Support Services such as import of raw materials, equipment, transshipment activities, etc.
• Regional distribution is like the export of finished goods and products.
• Freight Forwarding is like distribution from sea-air and sea-land final point.
• Processing, Assembling, and Packaging.
• Storage and Warehousing of Products.
• Travel Agencies.
• Finance, Insurance, and Investment.
• Consulting and Management Services.
• E-Commerce and Fulfilment Operations.

Licenses Available

Entrepreneurs must acquire a business license to establish a business, regardless of which Bahrain Free Zones they are choosing to set up their company. These licenses are issued in Bahrain by an integrated online commercial registration portal known as Sijilat. The operations of Sijilat are handled by the Ministry of Industry, Commerce and Tourism. This portal allows an easy and simple way to obtain commercial registrations for the business. 

Steps to Start a Business in Bahrain Logistics Zone

There are multiple steps involved in setting up a business in the zone, which helps in the success of the business, functioning with the business activities, and complying with the local laws of the zone. The steps are explained below –

1) Apply for Land or Other Services:

To set up a business in Bahrain, there are certain requirements, such as the land to function for business activities, an office space, certain services like PRO services, accounting services, visa services, tax services, etc. So, according to the needs and suitability of the business, entrepreneurs must apply for the land/services required.

2) Preparation of the Application Form:

The next step is to complete the application form. This form must contain financial details like audited financial statements for the past three years, company information like annual reports, business plans, description of activities and operations, and additional information that supports the form.

Submit the application form and a response from the BLZ Selection Committee for the period of two weeks.

3) Eligibility Verification:

The Bahrain Logistics Zone has been set up as a pioneering landmark logistics development. The overall objectives are to create adequate and high value-added employment, promote private sector involvement, and create direct and foreign investments for Bahrain.

In order to achieve this objective, the business needs to fulfil certain requirements to establish your business in the Bahrain Logistics Zone.

3) Nature of the Business:

This logistic zone aims to attract high-performing and long-term sustainable operations that focus on –

• Third-party logistics (3PL) services.
• General and specialised storage and distribution activities for export/re-export purposes.
• Value-added logistics services such as assembly, cosmetics weighing, mixing, filling, packaging and repackaging, de-consolidation/consolidation, kitting, palletising, labelling for distribution, testing and repair, and other value-added logistics activities.

Therefore, entrepreneurs must decide on the nature of the business which suits them best, which is according to the preferences of the business and raises the scope of the business as well.

Steps taken by the BLZ Selection Committee

1)Evaluation:

All applications received will be reviewed and evaluated by the BLZ Selection Committee. A comprehensive review of all forms and supporting documents will be undertaken by the BLZ Selection Committee to ensure that companies accepted for development can deliver on the commitments and objectives of the Bahrain Logistics Zone. Upon completion of the application evaluation process, applicants will be informed of the decision within the period of two weeks approximately.

2) Application Decision -

Official letters communicating decisions regarding applications will be sent to companies. Applicants will be either accepted, waitlisted or rejected in the Bahrain Logistics Zone.

• Accepted companies that are accepted move on to further discussions with Ports and Maritime Affairs about specific plot/facilities locations and lease agreement negotiation. If accepted, companies will be subject to lease agreement terms and conditions.
• Waitlisted companies may be accepted if negotiations with other admitted companies fail and space becomes available.
• Rejected companies under this category are not successful in obtaining space at the Bahrain Logistics Zone.

Selection Criteria:

To ensure that the overall objectives, strategy, and effectiveness of the zone are achieved and maintained, each company application will be evaluated based on its ability to meet the following three tiers of selection criteria.

a) Economic -

With a 30% weight in their application, companies are assessed based on their ability to support Bahrain's economic development objectives through:

• Leveraging Bahrain as a regional hub for operations.
• Creating mid and high-value jobs and knowledge transfer opportunities.
• Operations that entail value-adding activities.
• Promoting direct/foreign direct investments.
• The innovation in business concepts and operations.

b) Industrial -

Also, with a 30% weight in their application, companies should demonstrate their ability to support the Bahrain Logistics Zone objectives through:

• Leveraging the port facilities and customs-free procedures.
• Export / Re-export focused operations.
• Operations that include permitted and target activities in the zone.
• Match to land and utility capacity availability.
• Compliance with safety, health and environment standards.

c) Financial -

Most importantly, the business with a 40% weight in their application, applicants must prove their ability to meet minimum business sustainability standards through:

• Experience and Capabilities.
• Financial Health.

• Legal Compliance.

Therefore, the process of establishing a business in the Bahrain Logistics Zone is pretty straightforward and easy to follow. These steps, when followed, highly benefit the business individuals and attract them due to the profitability and growth this zone holds. 

However, this process requires extra attention due to the complexities, and it can be easy to follow after contacting a consultancy firm like Commitbiz because our team is an expert in offering you the right guidance and information regarding the incorporation of the business, licensing and ensuring of the local laws, customs, Bahrain Logistic services, etc. They will provide a business-minded environment and bring your dreams into reality. Contact us today to avail yourself of our business services.