Discover Why Companies Move Overseas to Bahrain

In recent years, the Kingdom of Bahrain has seen significant economic growth. And while much of this growth can be attributed to progressive, forward-thinking economic policies, a major factor in Bahrain’s success is that it is attracting a high number of foreign businesses—including top names in manufacturing and logistics.

But why do companies move overseas? And what is it about Bahrain that is encouraging offshore manufacturing and logistics organisations to pull up anchor and establish a presence in the Middle East?

Why Do Companies Move Overseas?

Companies move overseas to experience improved growth and ongoing success. Moving to a country with favourable governmental policies, regulations, and laws can help a business take more risks and grow more easily than at home.

Sometimes, a company’s home country just isn’t the best environment for it to thrive or continue thriving. And while moving operations into foreign territory can be extremely costly and complex, occasionally the prospective advantages outweigh the expenses. Often, the decision to move comes down to a question of how favourable the labour and market conditions are to business growth in the foreign location.

Bahrain offers business-friendly regulations and other supportive factors that are helping many offshore manufacturing and logistics organisations reach new heights.

Bahrain’s Factors for Successful Offshore Logistics Companies

Bahrain is an especially attractive location to offshore logistics organisations. Top logistics companies in Bahrain include several foreign businesses that have moved to the Kingdom to enjoy increased freedom and fewer unnecessary restrictions.

More specifically, Bahrain offers the region’s best value operating costs for setting up a business and conducting operations.

This includes lower costs associated with labour, construction, utilities, and accommodation, as well as a significantly lower cost of living.

Offshore logistics companies can also benefit from reduced port charges and efficient customs procedures. In fact, the Kingdom of Bahrain has gone so far as to establish a strategically placed logistics park designed to cater to the needs of logistics companies: the Bahrain Logistics Zone (BLZ).

The BLZ is completely customs free, and offers customised, end-to-end solutions designed to provide the best-possible around-the-clock support for logistics businesses. Dedicated account managers ensure that businesses are able to effectively address any administrative or management issues as they arise. And, with one of the most efficient customs procedures in the region, logistics companies are able to clear customs quickly and keep plans on schedule. The BLZ is located only 14 minutes from the Khalifa bin Salman Port and offers the shortest transit between seaport and airport in the GCC. 

Finally, the Kingdom of Bahrain boasts a very affordable infrastructure. Land prices are extremely competitive, costing only ~USD 11 per sq. m per year for plots equal to and larger than 3000 sq. m. And with 20-year renewable leases, logistics companies enjoy full-property ownership. Add to this easily available, ready-to-use warehouses, strong transport connectivity, and reliable fibre connectivity and other utilities, and it’s no secret why logistics businesses are so eager to make the move to Bahrain.

Bahrain Is the Ideal Offshore Manufacturing Environment

As with foreign logistics companies, offshore manufacturing businesses enjoy a number of incentives when moving to establish themselves in Bahrain. In addition to the reduced set-up, utilities, lease, and cost-of-living expenses mentioned above, Bahrain also provides a significant amount of government support. 

Bahrain is committed to supporting foreign businesses, with 0% corporate income tax, as well as 0% personal income tax for any businesses not associated with the oil industry.

Foreign ownership laws are likewise friendly and flexible, creating a ‘free zone’ that extends through the entire country. Bahrain also allows full foreign ownership of businesses in a number of sectors. The Bahrain labour fund (Tamkeen) also offers government grants, designed to help newly-established businesses more easily and quickly reach their potential.

And, because skilled workers are essential to effective production, many offshore manufacturing companies prefer to operate in Bahrain thanks to its educated and expertly-trained local talent pool. The local Bahraini workforce is highly literate, tech-savvy, multilingual, and backed by government financial and training support. 

Simply put, the Kingdom of Bahrain is dedicated to helping new and established offshore manufacturing businesses gain a foothold in the extremely lucrative, USD 1.5 trillion GCC market.

Bahrain: A Unique Opportunity for Offshore Manufacturing and Logistics

When organisations make the move to a foreign location, they do so to explore new markets, tap into increased innovation, and better protect their investments and returns. Manufacturing and logistics businesses are no exception, and thanks to Bahrain’s friendly, supportive approach to foreign business, these companies are finding unrivaled success in the GCC. 

Bahrain has everything you need to establish your company. Click here to learn more about investing in Bahrain’s ecosystem, and take your manufacturing or logistics business to new heights.

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