Bahrain has always been at the crossroads of major trade routes since the times of antiquity. An aspect worked on by acknowledging its strategic location in the Gulf of Arabia. Moreover, the archipelago nation is situated with two major countries of the GCC on either side, on the east lies Saudi Arabia and to the north, Qatar. Thus, steering the economy with a synergy of commerce and trade derived from its neighbors. As the past decade unraveled, Bahrain witnessed a reign of a steep rise in its economic growth and an inclination in a variety of new businesses setting up its base in Bahrain.
An indicator for a thriving economy is the positive rate at which businesses are operating in that economy. It is clear that if the process of setting up a company, filing taxes, filing for taxes, adhering to rules and regulations backed by policies which nurture growth, protect property rights and a skilled local workforce, running a business becomes fairly easy or a much less difficult ordeal. And a metric adopted to calculate how effortlessly one at which one can run a business in a nation is the "Ease of Doing Business Index".
Ease of Doing Business Index
The Ease of Doing Business Index is ranking of 1 to 190 given to all the countries of the world based on how conducive a respective nation's business environment is. A higher ranking indicates better economic conditions and the simplicity of the procedures and regulations to run a business.
By 2019, Bahrain ranked a pretty satisfactory position of 62nd on the Ease of Doing Business Index, leveling up a rank since the preceding year, 2018, when it ranked Bahrain ranked 63rd in a list of 190 countries. Note that, this position isn't seen as a mere average rank as it denoted that Bahrain ranked 2nd in competition with the entirety of the GCC, and leveled up four places higher than its previous rank.
A closer look at its past performance indicates a drastic change as Bahrain's rank increased on the scale. In 2017, Bahrain ranked 66 out of 190. The following year it leaped onto 62 by the end of 2018. The Ease of Doing Business in Bahrain averaged 47.27 from 2008 until 2018, reaching an all-time high of 66 in 2015 and a record low of 18 in 2008.
This ranking was achieved by Bahrain's continuous efforts to provide a transparent and liberal business environment in the region. Bahrain also relays great importance to the private and industrial sector by offering attractive schemes for private companies, such as the total exemption from tax and the imposition of non-direct taxes on private entities and institutions. In addition to the features mentioned previously, Bahrain offers a way to return the capital back without the imposition of a fee and facilitates foreign investors to freehold real estate properties for both residential and business reasons in several different areas in Bahrain through the code of 2003. Some of the areas are Al Bahrain, Al Durrat, Al Juffair, Al Seej, Al Reef island, and Amwaj island. A great deal of Bahrain's momentum can be credited to the Government.
The Indices are:
- Changes in Inventories (BHD Million): 197
- Car Registrations (in Hundreds): 428
- Internet Speed (KBps): 7922.65
- IP Addresses (IP): 87840
- Competitiveness Index (Points): 63.63
- Competitiveness Rank: 50
- Ease of Doing Business: 62
- Corruption Index (Points): 36
- Corruption Rank: 133
Out of all the countries in the GCC, Bahrain is the sole nation that has placed a system of communication free from any regulatory restrictions and boundaries. Bahrain ranked 62rd in a list of 190 countries, but this position isn't seen as a mere average rank as it denoted that Bahrain ranked 2nd in competition with the entirety of the GCC. The rate is projected to be constant in the upcoming years; Bahrain will maintain and even grow to a higher rank.
Business Setup Worldwide is a global consultancy company, providing you with the best business solutions to the queries arising while setting up your business in Bahrain. We specialize in helping you with all the processes ranging from company incorporation to visa services, filing taxes to corporate secretary services. Through our branches and Advisors established across the globe, we have the know-how and knowledge of all the business trends and environments, the changes to watch out for, and the opportunities to grasp. To know more, contact us, we'd be happy to help!