How Economic Growth Impact Business in Bahrain?

Holding a strong front in 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 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%, which increases 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. 

Economic Growth and Business Establishment Link

Any change that takes place in an economy has a direct impact on the business industries prevailing in the same region. Certain factors like technological advancement, availability of labour, and capital stocks are taken into consideration while establishing a business, so its 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 expanded by 1.2% in the fourth quarter compared to a contraction of 1.4% in the third quarter. The region has been continuously working towards the growth of non-oil sectors. According to the econometric models, Bahrain's 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:

1. Tourism

The Kingdom of Bahrain is a famous tourist destination. Every year, the region receives more than a million tourists, which has multiplied the revenue of the economy. Due to the exponential growth in the tourism sector in Bahrain, there is significant potential for tourism-related businesses in the region. Any businessperson interested in establishing a venture in this industry can consider Bahrain as an ideal business destination.

2. Hospitality

The next on the business list is the hospitality sector, which gets a broader platform due to the increase in 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.

3. Information Technology

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 a nationwide 4G LTE network. According to the report 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 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.

4. Aluminium

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 expanding 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 the Line 6 Expansion Project.

5.SMEs

Not only high level even small and medium industries have found a roof for themselves in the Kingdom of Bahrain. The initiatives taken by the Government, like Sustainable Goals and 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 Zone to give a kick-start to your business.

6. Food Processing

The Kingdom of Bahrain serves as a strategic location when it comes to the 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.

7. Handicrafts

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 business activities. If you are dealing with handicraft industries and are planning to expand or set up a new one, you can count on Bahrain.

These are the core industries that helped Bahrain to increase its business ranking. Any business investor dealing in any of the industries 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 took the initiative in 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 the region. Bahrain, being one of the growing markets in the Middle Eastern Region, has taken the initiative to implement sustainable goals that will not only increase 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 as 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 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 clear 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 complete responsibility for establishing your business in Bahrain. To initiate the process, do contact us today-we’d be glad to assist.