What is a foreign investment?
Foreign Direct Investment (FDI) is where a company or individual chooses to establish business operations, or invest capital, in a country outside of their own domestic market. Unlike some countries, investors in Bahrain can benefit from 100% foreign ownership across most sectors, with no requirement for a local partner. Because of these foreign investment advantages, Bahrain has been ranked 1st in GCC in 2020 for inward FDI stocks relative to GDP. The FDI stocks in 2020 represent 91.3% of Bahrain’s GDP with a compound annual FDI growth rate of 4% across 2016-2020.
Why you should invest in business in other countries
Foreign investment allows investors to take advantage of business sectors that may be different from what is offered by their domestic market. The chance to invest in business offerings in a foreign country can help you diversify your portfolio and can also open the door to future international business investment opportunities. Bahrain has the most diverse economy in the Gulf; in fact, more than 80% of its GDP was generated from non-oil sectors in 2018, and that percentage continues to increase.
Investment in foreign countries and markets can allow for greater future business opportunities for growth, trade, and profit in different business sectors, as well as improved access to neighboring international businesses. Bahrain offers both due to its business-friendly laws and policies, physical proximity to other Middle Eastern countries and inclusion in the Gulf Cooperation Council (GCC).
The EDB focuses on several economic sectors which encourage businesses to capitalise on Bahrain’s competitive advantages. These represent just a small selection of opportunities available to international investors, businesses and entrepreneurs looking to enter the market in Bahrain, and we encourage you to contact us for a personalised discussion on foreign investment.
Spurring economic development and creating future business investment opportunities
In addition to its highly developed transportation and ICT networks, Bahrain has over USD 32 billion in infrastructure and real estate developments that are already in advanced stages of progress. More than just an indicator of continued economic development in the Kingdom, these will create wide-reaching future opportunities for investors across sectors as they approach completion.