- Bahrain is a small, open economy located in the Persian Gulf with a population of approximately 1.7 million people. The country has a well-developed infrastructure, a skilled workforce, and a favorable business environment that makes it an attractive destination for foreign investment.
- If you are planning to start a business in Bahrain in 2024, here are some key factors to consider:
- Business climate: Bahrain is known for its pro-business environment, which is characterized by a liberal economic policy, low taxation, and minimal government intervention. The country is ranked 43rd in the World Bank‘s ease of doing business rankings for 2020, which is a good indicator of the favorable business climate.
- Market size: Bahrain’s small population and economy mean that the market size is relatively small, making it ideal for niche businesses. However, the country’s strategic location in the Persian Gulf region means that it serves as a gateway to the wider Gulf Cooperation Council (GCC) market, which has a population of over 50 million people.
- Sectoral opportunities: Bahrain has identified several priority sectors that offer investment opportunities, including financial services, tourism, logistics, manufacturing, and ICT. These sectors benefit from the country’s strategic location, well-developed infrastructure, and supportive government policies.
- Government support: The Bahraini government offers several incentives to encourage investment, including tax exemptions, customs duty exemptions, and subsidized land and utilities. The government also provides support through various agencies, such as the Bahrain Economic Development Board (EDB), which offers advisory services, market intelligence, and access to networks.
- Workforce: Bahrain has a highly skilled and educated workforce, with a literacy rate of almost 95%. The country also offers a range of vocational training programs and university courses to prepare the workforce for the needs of the modern economy.
- Overall, Bahrain offers a favorable business climate for foreign investors, with a supportive government, skilled workforce, and strategic location. However, given the small market size, it is important to carefully consider the sectoral opportunities and target market before starting a business in Bahrain. In this post, allow Tetra Consultants’ team of experts to introduce you to several highly fascinating important businesses in Bahrain, as well as the benefits they may provide for your company or business concept before you advance to register company in Bahrain.
Types of Business in Bahrain in 2024
- Bahrain is a diverse and vibrant business hub, with a range of industries and sectors that are popular among entrepreneurs and investors. Here are some types of businesses that are expected to be popular in Bahrain in 2024:
- Financial Services: Bahrain has a well-established financial services industry, which includes banking, insurance, and asset management. The country is home to many regional and international financial institutions, and the government has identified financial services as a priority sector for investment.
- Tourism: Bahrain’s rich history, culture, and natural beauty make it an attractive destination for tourists. The country has invested in its tourism infrastructure in recent years, with the development of luxury hotels, resorts, and entertainment facilities. Additionally, Bahrain hosts several high-profile events, such as the Formula One Grand Prix, which attracts visitors from around the world.
- Manufacturing: Bahrain has a small but dynamic manufacturing sector, with a focus on high-value-added industries such as aerospace, electronics, and pharmaceuticals. The country offers several incentives to encourage investment in manufacturing, including tax exemptions and subsidized land and utilities.
- ICT: Bahrain has a growing ICT industry, which includes software development, e-commerce, and digital media. The country has invested in its ICT infrastructure in recent years, with the development of a high-speed broadband network and several technology parks.
- Logistics: Bahrain’s strategic location in the Persian Gulf region makes it an important hub for logistics and transportation. The country has invested in its port and airport infrastructure, and several logistics companies have established operations in Bahrain to serve the wider GCC market.
- Healthcare: Bahrain has a modern and well-equipped healthcare system, with a growing focus on medical tourism. The country offers several incentives to encourage investment in healthcare, including tax exemptions and subsidized land and utilities.
Other types of small businesses in Bahrain in 2024
- In addition to the major industries and sectors in Bahrain, there are several small business types that are expected to be popular in Bahrain in 2024. Here are some examples:
- Food and Beverage: Bahrain has a rich culinary culture, with a variety of traditional and international cuisines. Small businesses in the food and beverage industry, such as cafes, restaurants, and food trucks, are expected to continue to thrive in Bahrain.
- Retail: Bahrain has a strong retail sector, with several shopping malls and markets that attract local and international shoppers. Small businesses in the retail industry, such as boutique stores and specialty shops, can find success in Bahrain’s vibrant retail environment.
- Education: Bahrain has a high demand for quality education, with several international schools and universities operating in the country. Small businesses in the education industry, such as tutoring services and language schools, can find opportunities to serve the local market.
- Beauty and Wellness: Bahrain has a growing interest in health, beauty, and wellness, with several spas, salons, and fitness centers operating in the country. Small businesses in this industry, such as beauty salons, yoga studios, and health food stores, can tap into this trend and find success in Bahrain.
- Creative Industries: Bahrain has a thriving creative scene, with several artists, designers, and creatives based in the country. Small businesses in the creative industries, such as graphic design studios, art galleries, and music studios, can find opportunities to serve this market.
- Overall, Bahrain offers a diverse range of business opportunities across several industries and sectors. Entrepreneurs and investors are encouraged to explore these opportunities and conduct market research to identify the most promising areas for investment.
- Engage Tetra Consultants as we guide you on how to set up your business in Bahrain through a smooth and hassle-free process. The team provides a comprehensive service package that includes planning and strategizing with our clients to select a suitable business entity, completing the registration and documentation processes, obtaining required licenses, opening a corporate bank account, and ensuring compliance with government regulations.
- Contact us to find out more about how to set up a business in Bahrain and our dedicated and experienced team will revert within the next 24 hours