Bahrain Logistics Zone (BLZ)

Inaugurated in 2008, the Bahrain Logistics Zone is located at the heart of Salman Industrial City in Al Hidd Industrial Area adjacent to the Khalifa bin Salman Port (KBSP) and fifteen minutes from the Bahrain International Airport (BIA).

Now, the BLZ has transformed into a regional trans-shipment hub with highly-integrated logistics as it is designed and operated by Ports and Maritime Affairs at the Ministry of Transportation and Telecommunications for delivering warehousing and logistics infrastructure supporting the goods flow from the Khalifa bin Salman Port.

Furthermore, the Bahrain Logistics Zone benefits from the aggressive pricing and world-class services in import, export, re-export operations, reduced time required for unloading & re-shipping, a strategic geographic location which provides easy access to GCC markets. All of these facilities position the BLZ as a destination for companies seeking to access the Gulf region.

Bahrain Logistics Zone is ideal for

• Logistical support services (i.e., Import of raw materials and equipment, trans-shipment activities)
• Regional distribution (i.e., Exporting finished goods and products)
• Freight forwarding (i.e., sea to air & sea to land final point distribution)
• Processing, assembly and packaging
• Storage and warehousing of products
• Travel agencies
• Finance, Insurance and investment
• Consulting & management services

Licenses Available

In order to establish a business in the Free Zone the Business must acquire a business license and these licenses are issued by an integrated online commercial registration portal which is known as Sijilat. All 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.

What are the permitted Activities in BLZ?

The permitted activities in Bahrain Logistics Zone are as follows:

• Distribution and Contract Logistics on a regional basis.
• Courier and Express Services
• Repacking, packaging, labelling, palletizing etc.
• Freight Forwarding Services.
• E-commerce and Fulfilment Operations.

How to Start your Business in the Bahrain Logistics Zone?

Apply for Land / Serviced Facilities

• The process for setting up your business in the Bahrain Logistics Zone is a simple, transparent and fair application process

• Prerequisites Review eligibility and selection criteria to ensure that your company meets them
• Complete the Application Form, and the completed application form must contain the
• Financial information containing the audited financial statements for the past three years
• Company information comprising the annual reports and/or business plans as applicable to demonstrate competence and other materials, including descriptions of activities and operations and list of clients and work completed
• Additional information that supports your application
• Submit the application form with additional supporting documents
• Allow for two weeks for a response from the BLZ Selection Committee

Check your Eligibility

The Bahrain Logistics Zone has been set up as a pioneering landmark logistics development with the overall objectives of creating adequate and high value-added employment, promoting private sector involvement and creating direct and foreign direct investments for Bahrain.

In order to achieve this objective, the business needs to fulfil certain requirements and without this it would not be possible to setup a business in the Bahrain Logistics Zone.

Select the Nature of your Business

The Bahrain Logistics Zone aims to attract high performing and long-term sustainable operations that focus on

• Third-Party Logistics (3PL) services
• General and specialized 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

Evaluation

All applications received will be reviewed and evaluated by the BLZ Selection Committee. A comprehensive review of all form 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 (average decision time = 2 weeks)

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.

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

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

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

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 location and lease agreement negotiation. If accepted, companies will be subject to lease agreement terms and conditions.
• Waitlisted Companies that 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.

If you are looking for setting up a business in the Bahrain Logistics Zone, we at Commitbiz are here to help you make the process hassle-free. Contact us today as our Bahrain team is expert in offering you the right guidance and information regarding the incorporation of the free zone company in the Kingdom of Bahrain according to the local laws, customs and provide you with a foresight of the business environment in the area.