Bahrain Gcr

7/27/2019 Bahrain Gcr

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A

Presentation

onUpcoming industries and sector of the Bahrain & the

potential scopes for the international business

Presented By: Patel Parth. (339)

Patel Robin. (342)

Patel Roshni. (343)

Patel Sharvil. (344)

Patel Shreya. (345)

Patel Sunil. (346)

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ntro uct on The Kingdom of Bahrain is an archipelago of 33 small islands, with a

total land area of 665 sq kms or around a quarter of the size of the

Australian Capital Territory.

People:

98% Muslim with small Christian, Jewish, Bahai, and Hindu

communities.

Language:

Arabic (official), English, Farsi, and Urdu are also widely spoken.

Government

Type: Constitutional hereditary monarchy

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Economy:

GDP per head: GDP (2009): $20.59 billion. Per capita GDP (2009 est.):

$38,400.Real GDP growth rate (2010): 4.5%.

Inflation: 2.6% (2010)

Major Industries: Financial Services, oil and gas (production and

refining), Aluminum, and ship building and repair, leisure and tourism.

Natural resources: Oil, aluminum, textiles, natural gas, fish, pearls.

Agriculture: Products--fruit, vegetables, poultry, dairy products, shrimp,

fish.Major trading partners: Saudi Arabia, US, India, Japan, UK, France,

South Korea.

Services: Finance, transport and communications, real estate, government

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INTERNATIONAL RELATIONS

Relationships with its neighbors in the Gulf Co-operation Council(Qatar, Kuwait, Oman, Saudi Arabia, and the UAE), the US and the

UK, and with other Arab states.INDIA BEHRAIN RELATIONSHIP

Relations between India and Bahrain have been growing steadily and have

touched new horizons.

Trade has been intensifying between the two countries.

India and Bahrain have always maintained friendly and cordial relations.

The two countries hold similar views on several important international

issues.

Economic and commercial relations between the two countries have

strengthened.

advantageous for both countries to go ahead with joint ventures


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Why choose Bahrain as an investment location

Attractive investment location.

Opportunities and advantages offered to potential investors.

Sophisticated market infrastructure.

Market

A strategic location in Western Asia

Situated halfway between eastern and western time zones. A regional market of 100 million people.

The hub of aviation in Western Asia

Modern integrated air, sea and road transportation system 6


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Financial Advantages

No personal, corporate or withholding taxes.

No exchange control restrictions on repatriation of capital, profits

and dividends.

A freely convertible and stable currency linked at a fixed rate to the

United States dollar.

Low-cost utilities, fuel and telecommunications.

Serviced factory and warehouse sites available at low cost.

Labour costs one third of those in industrialized countries.

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Other Advantages

100 percent foreign ownership of companies permitted.

Mature legal infrastructure and internationally accepted trade

practices.

Western Asia's international financial center.

A major center of regional insurance activities.

Extensive free-zone facilities.

The regions most advanced digital telecommunications system.

Skilled and resourceful workforce fluent in Arabic and English

Pleasant, secure and cosmopolitan lifestyle.

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Key Sector OutlookIndustry sectors in Bahrain will grow fastest, and

the major investment opportunities in the market.

Bahrain ministry of industry identifies investment

opportunities in Bahrain's high growth industries including,

Automotives

Food & Drink

Freight Transport

Infrastructure

Oil & Gas

Pharmaceuticals & Healthcare

Telecommunications

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LIST OF UPCOMING INDUSTRIES PREDICTED VERY

ATTRACTIVE

(a) cargo storage, consolidation, re-export and distribution

(b) sea and air cargo

(c) cargo handling systems; courier operations

(d) aviation-related engineering support and maintenance facilities

(e) tourism projects and travel services

(f) hospitality services

(g) road transportation.

Most attractive upcoming industry:

Tourism project and Travel Services 10


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Indian investors have the choice to establish their own companies or

have joint ventures with Bahraini companies.

Indian banking and insurance companies can benefit from Bahrain.

Indian companies can look into the possibilities of having joint

ventures to build means of transport (sea, road, rail) and in lots of

other areas.

Bahrain pays lots of attention to the IT sector. Thus, it is only natural to

cooperate with the Indian IT corporate who have done a wonderful job,

not only in India, but worldwide.

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Further, there are possibilities of investments in new

sectors like atomic energy, solar energy, tourism and

land development

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Business Scope

Unique mix of market access, skilled labor, low operating costs andzero corporate taxes, combined with an excellent lifestyle offer, has

stimulated investment across a wide range of sectors.

Incentives to the Investors :

No taxation on personal or corporate income &

No withholding and VAT Tax ,

100 % Repatriation of capital and profits ,

100 % ownership of business to foreigners and

100 % ownership of land to foreigners. 14


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Other Financial Incentives : A Freely convertible & stable

currency linked at a fixed rate to the US $.

International Trade Incentives : Duty Free Merchandise for Re-

Export , Duty Free Import of materials and machinery


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We now have an established track record in a number of key sectors,

with new sectors developing all the time.

Financial services

Business and professional services

Logistics

Education and training

Events & Conferences

Automotive Manufacturing

Information Communication Technology (ICT)

Real Estate

Tourism

Petrochemicals

Plastic 16


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Petrochemical Industries and Plastics Sector

The petrochemical industry ranks high on the priority list of

industrial development in Bahrain and has enjoyed support from

the Government and relevant agencies, as will from the private

sector in Bahrain.

Petrochemical-based downstream, such as chemicals, detergents,

paint, medical and industrial gases, plastics, synthetic sponges,

fiberglass, heat insulators, etc. form a major part of this industrial

sector. These have attracted private sector investors due to the

smaller capital.

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Car Manufacturing in Bahrain

Bahrain is an excellent location for car manufacturing due

to the availability of raw materials such as aluminum, the

low cost of energy and the availability of a skilled

workforce.

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Tourism

Bahrain offers great potential as both a regional and a world tourist

destination, blessed with 33 islands, a cosmopolitan capital city; an

attractive, liberal lifestyle; and a rich history and culture.

Meetings, Incentives, Conferences and Exhibitions (MICE)

sector. In 2006 they attracted 4.5 million business and leisure

visitors. Because of its location, competitive prices, state-of-the-art

technology and services,

Bahrain is an ideal place for MICE.

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Food Manufacturing in Bahrain

There is high demand for foodstuffs as a result of the growing

populations in the region. Bahrains strategic location at the

heart of the Gulf, the opportunities promised by the Bahrain

International Investment Park, and the low cost of setting up

and running industrial facilities, puts Bahrain at a

distinct advantage over its neighbors as a manufacturing hub.

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In September 2010 Mani & Co., one of the Middle Easts

fastest growing producers of fruit and nut snacks, unveiled

plans to expand its operations into Bahrain. There are also

plans for the construction of Bahrains first sugar refinery

for local and regional markets at the Salman IndustrialPark in 2011.

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Garments Industries sector

This industry started in Bahrain before 12 years to benefit from

the export quota to United States of America. There are 23

ready-made garments factories and 5 yarn factories This

industry is 100% export oriented to USA, Europe and Canada.

The Government of Bahrain provides tax exemption on import

of equipment's and raw materials to this industry, and provides

the share of the export quota. The Ministry of Industry

participated in establishing the Bahrain Training Center.

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Construction

The government of Bahrains 2011-2012 budget is the largest in the

countrys history. As part of Economic Vision 2030, the budget

includes funding for major construction initiatives including the

Northern Bridge City, a new industrial city, new roads, flyovers,

hospitals, and clinics.

The Economic Development Board is taking an initiative to

modernize the infrastructure in the kingdom to attract foreign direct

investments.

So there is a wide scope for the Construction Sector in Bahrain. 23


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ConclusionBahrain having small geographical area with pleasant ,secure , safe , cosmopolitan lifestyle and good support ofgovernment for new small as well as big business sectors

there are good scope for investors to invest in Bahrain.

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References store.businessmonitor.com/bf/bahrain_business_forecast_report

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www.encyclopedia.com/topic/Bahrain.aspx

www.bahrainedb.com/auto-manufacturing.aspx

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www.economywatch.com/world_economy/bahrain/

www.thenational.ae/business/economy/business-standstill-hits-bahrain

www.arabianbusiness.com/gcc/bahrain/

www.un.int/bahrain/business.html

www.bahrainedb.com/business-opportunities.aspx

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