Holding a strong front on the oil sector, the Kingdom of Bahrain has established a strong identity in the GCC Market. To diversify the economy and the revenue source, the Government of Bahrain has been paving out multiple ways to boost the non-oil sector. This initiative has widened up the scope for foreign investors to select Bahrain as the ultimate business destination. The GDP growth of Bahrain in 2019 is expected to touch 1.8%, that increases more opportunities for business entrepreneurs, and owners of established businesses. If you are looking for business opportunities in Bahrain, you need to know that setting up a business in Bahrain is flexible, backed by the support of an experienced helping hand. This treatise will give you complete information regarding the impact of economic growth in Bahrain.
Economic Growth and Business Establishment Link
Any change that takes place in an economy has got a direct impact on the business industries prevailing in the same region. Certain factors like technological advancement, availability of labour, capital stocks are taken into consideration while establishing a business, and so it’s presence in the region is a must. The Kingdom of Bahrain has become a significant ground for business setup processes. In 2018, the economy of Bahrain had advanced 4.6% year-on-year. In terms of GDP, the count has expanded 1.2% in the fourth quarter as compared to 1.4% contraction in the third quarter. The region has been continuously working towards the growth of non-oil sectors. According to the econometric models, the Bahrain GDP is projected to hold a value of 44.00 USD billion by the year 2020.
Bahrain’s Present Economic Status
The current scenario of Bahrain can be defined in the growing stage across different industries. Apart from the Petrochemical industry, it is a ground to the following business sectors:
The Kingdom of Bahrain is a famous destination when it comes to the Tourism industry. Every year, the region receives more than a million tourists, that has multiplied the revenue of the economy. It can thus be stated that the Tourism business has got sufficient scope in the region, and any businessperson who is interested in establishing a business in the tourism sector can select Bahrain as the ultimate business destination. To get more clarity on this, click here.
The next on the business list is the hospitality sector, which gets a broader platform due to the increase of tourists in the region. The Bahrain Tourism and Exhibition Authority (BTEA) has stated that tourism turns out to be one of the growing investment sectors. According to a recent report, Bahrain’s hospitality sector is expected to grow at an annual rate of 7.3% by 2020. If you are planning to set up a business in Bahrain, then you can go to the hospitality sector.
The IT sector turns out to be a strong pillar to boost the economy of any country. Bahrain has been ranked 1st in the MENA region as it offers nationwide 4G LTE network. According to the report stated by Start-up Bahrain in 2018, the IT industry stands as a market of $200 billion, and the region has also facilitated a launchpad for the Indian companies to enter their ICT market to boost the economy. This step becomes an excellent opportunity for entrepreneurs and businesspersons to establish their IT business in the Bahrain region.
When it comes to the aluminium industry, the word ‘Bahrain’ pops up. Recognized as the aluminium hub of the MENA region, Bahrain holds the aluminium industry as one of the strategic sectors that have contributed profoundly to expand Bahrain’s economy. As per the Gulf Industry Magazine, Bahrain’s Aluminium industry will reach a count of 15-16% of the nation’s GDP with Line 6 Expansion Project.
Not only high level, even the small and medium industries have found a roof for themselves in the Kingdom of Bahrain. The initiatives taken by the Government like Sustainable Goals, Economic Vision 2030, will pave out numerous ways for the small and medium-sized industries. If you do have a business idea which operates on a small scale, then you can count on Bahrain Free Trade Zone to give a kick-start to your business.
The Kingdom of Bahrain serves out to be a strategic location when it comes to food and beverage processing industry. The market that held a value of $2.4million back in 2015 is showing robust growth in the present times and is expected to grow by 7% by 2020. The tourism industry acts as a significant driver in leveraging the food processing industry to its next level and highlights multiple opportunities for business investors globally.
When it comes to handicrafts, Bahrain is a well-known ground providing a boost to the traditional industries. These industries hold the voice of the society’s culture and the Kingdom provides a well-built platform to carry out the business activities. If you are dealing with handicraft industries and is planning to expand or set up a new, you can count on Bahrain.
These are the core industries that helped Bahrain to increase the business ranking. Any business investor dealing in any of the industry mentioned above can choose Bahrain as their business platform. Next, let’s head on to the future initiatives taken by the Government of Bahrain.
Bahrain’s Future Initiatives
When it comes to future initiatives, the following can be seen:
1.Bahrain Economic Vision 2030
The Government of Bahrain has taken the initiative by 2008 to develop an economic vision for Bahrain that focuses on shaping government goals, society and economy backed by competitiveness, sustainability and fairness. The ultimate aim behind the 2030 vision is to increase the household of every Bahraini citizen in real terms and will help the Kingdom to diversify its economy.
2.National Sustainable Goals
Another initiative taken by the government to uplift Bahrain’s economy is to infuse the Sustainability Goals in the economy, which will strengthen the education, health, social protection, and job opportunities in a region. Bahrain, being one of the growing markets in the Middle Eastern Region has taken the initiative to implement the sustainable goals that will not only increase the economic development but will also pave out multiple benefits for business industries. By applying them, the economy is expected to go under scenarios, that will open up various gates for foreign investors, proving a sufficient ground for business investment.
It can be seen that Bahrain serves to be a ground for businesses irrespective of size and nature. The Bahraini government provides a comprehensive platform for newbies and experienced professionals to come forward and invest. Completion of the business setup process involves much of documentation which covers numerous stages of legal aspects. To perform the process in a hassle-free way, it is recommended to take the advice of subject-matter experts, who can help you in clearing the essentials. At Commitbiz, the team of experts are dedicated to providing the best services to the respective clients. Irrespective of the size and nature of your business, we take the complete responsibility of establishing your business in Bahrain. To initiate the process, do contact us today-we’d be glad to assist.