Companies operating in Bahrain enjoy cost advantages of up to 69% in logistics and up to 41% in manufacturing.

According to the ‘Cost of Doing Business in the GCC’, manufacturing and logistics sector reports published by the EY’s US office, businesses operating in Bahrain benefit from annual operating cost advantages of up to 69% in logistics, and up to 41% in manufacturing compared to neighbouring Gulf Cooperation Council (GCC) countries.  

The in-depth study, which reported Bahrain International Investment Park and Bahrain Logistics Zone as the most cost-competitive special economic zone (SEZ) in the GCC to operate a manufacturing or logistics business. The reports collected and analysed key data, factoring in both direct and indirect annual costs associated with operating companies, such as office space, labour, transport and logistics, taxes, utilities, business registration and licensing comparing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. 

The island nation of Bahrain, strategically located at the heart of the Gulf serving as a gateway to the region, has prioritised maintaining its cost competitiveness. A cornerstone of its strategy of maintaining its position as a trusted destination of choice for foreign investment with a focus on attracting investments into high-value sectors, coupled with its national priorities of realising key infrastructure projects and continuing to upskill and future-proof its talent pool, Bahrain continues to work towards building a diversified and resilient economy. Exemplifying investor trust, Bahrain’s FDI Stock Relative to GDP is more than double the global average, standing at 93.6% as of 2023 (GCC:27.5%, World: 44.9%)    

Commenting on the findings, Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB), said, “Offering long-standing stability and strong interregional cooperative ties, the Gulf region continues to attract investments driven by ambitious growth visions – GCC economies collectively grew by 22% from 2021 to 2023, to reach a combined total of about USD 2.1 trillion; this is expected to reach USD 2.8 trillion by 2030 according to the IMF.” 

Bahrain stands out as a trading hub providing significant savings in various operational areas. Within the logistics report, the cost of port storage costs are up to 52% more competitive, enhancing Bahrain’s attractiveness for businesses seeking to set up or expand into the region. From both sector reports, EY indicated that annual labour costs in Bahrain are lower than the GCC average – up to 30% less for logistics companies and up to 24% less for manufacturing.  

The Chief of Business Development at Bahrain EDB added, “Bahrain’s competitive advantages, favourable tax environment, and agile regulatory policies underscore a steadfast commitment to fostering a seamless and business-friendly investment environment, positioning our island nation as the ideal destination for logistics and manufacturing companies looking to expand in the GCC and beyond.” 

Andrew Phillips, Partner/Principal & Co-leader of Quantitative Economics & Statistics (QUEST) at Ernst & Young said, “Special economic zones and other measures are helping GCC governments to continue to diversify by attracting large-scale projects to reshape national economies by developing industries of the future. For manufacturing and logistics firms eyeing the region in search of a competitive cost environment, our sector reports determined that Bahrain is the most cost-competitive across the Gulf special economic zones we analyzed based on attractive labor, real estate rental, and utility costs for businesses and a low cost of living for employees.” 

Bahrain’s strategic location at the heart of the GCC further enhances its appeal, particularly for road transport. Companies can save 71% and 65% on average when shipping 40-foot containers to Dammam and Riyadh, offering significant value. With the fastest customs clearance times and the shortest transit routes between seaports, airports, and logistics zones, Bahrain is emerging as the Gulf’s most efficient and cost-effective logistics gateway. 

The island nation is home to several global companies that have successfully leveraged these advantages. Notable players in the logistics sector include DHL, which has established a significant operational presence in Bahrain; FedEx, the anchor tenant of Bahrain Cargo Village, and DSV, a global leader in supply chain services. On the manufacturing side, companies like Mondelez and Arla have chosen Bahrain as a strategic base for their regional operations, benefiting from cost efficiencies, logistical advantages, and a highly skilled talent pool. 

The Bahrain Economic Development Board (Bahrain EDB) today hosted a high-level business delegation from France as part of a two-day visit organised by the investment promotion agency in collaboration with MEDEF, the first network for entrepreneurs in France. With an overall aim of showcasing Bahrain’s investment landscape, the visit is set to comprise exclusive business events and strategic meetings with representatives from Bahrain’s public and private sectors, where the discussions will focus on sharing value-adding business opportunities across priority sectors, namely financial services, manufacturing, ICT, logistics, and tourism.

Additionally designed to strengthen investment ties between the two countries, as part of the visit Bahrain EDB organised meetings with key entities including the Ministry of Oil & Environment, the Ministry of Transportation and Telecommunications,  the Ministry of Tourism, the Ministry of Industry and Commerce,  the Central Bank of Bahrain, Tamkeen, Bahrain Tourism & Exhibitions Authority, Mumtalakat, Bapco Energies, the French Embassy to the Kingdom of Bahrain, Bahrain Chamber of Commerce and Industry, the French Chamber of Commerce and Industry in Bahrain and BNP Paribas.

Bahrain is home to a number of leading French companies, including BNP Paribas, Nextcare, Fives Solios, Thales, Accor, Egis International and Veolia. The non-oil trade between Bahrain and France has seen remarkable growth, increasing by 27% from USD 334 million in 2019 to over USD 425 million in 2022.

In 2024, Bahrain EDB successfully attracted over USD 1.8 billion in direct investment from 99 local and international projects. These investments are projected to create over 7,400 employment opportunities over a three-year period. 

The Bahrain Economic Development Board (Bahrain EDB) has secured over USD 380 million in investment commitments from Singapore-based companies, since the launch of Bahrain EDB office in Singapore in November 2023, across a number of priority sectors, namely financial services, ICT, manufacturing, and tourism.

Marking a new milestone, the announcement was made on the sidelines of a strategic visit to Singapore, which was led by H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development, Chief Executive of Bahrain EDB supported by senior members from the investment promotion agency. Alongside a number of targeted meetings with investors and business entities, Bahrain EDB met with the Supreme Court of Singapore, Enterprise Singapore and Singapore Economic Development Board. Bahrain EDB also hosted an exclusive business event designed to showcase Bahrain’s investor landscape and regionally competitive operating costs.

2024 was a record year for the island nation’s investment promotion agency, which successfully attracted a total of over USD 1.8 million in direct investment from global markets. In terms of capital, the highest contributor of foreign investment originated from Singapore, valued at USD 234 million (13%). This underscores a robust value proposition for international investors, where Bahrain has cemented itself as a leading destination of choice for businesses seeking to tap into the Middle East and North Africa (MENA) region, which is on the expansion roadmap for international companies.

H.E. Noor bint Ali Alkhulaif, Minister of Sustainable Development, Chief Executive of Bahrain EDB, said, “Building on the synergies and shared investment opportunities between our two island nations, our robust two-year pipeline of investment projects is a testament to the trust Singaporean investors place in Bahrain’s pro-innovation environment. We remain committed at Bahrain EDB to continue to foster a streamlined investment ecosystem that champions ease of doing business, growth, and scalability.”

With a focus on future-proofing talent, the government of Bahrain is known for its agility and forward-looking legislation, making tactical investments in digital transformation, landmark strategic projects, and in upskilling its highly skilled bi-lingual workforce. To effectively bridge the global talent gap, the local workforce is consistently reskilled with the support of government grants and subsidised programs.

This has led leading players, including Citi and PwC Middle East, to base their tech hubs and service centres in Bahrain to cater to their global clientele. Recent Singapore-based successes include Whampoa Group’s Singapore Gulf Bank (SGB) which launched the first digital bank in Bahrain licensed to onboard offshore corporate and crypto clients. SGB is aiming to facilitate frictionless movement between digital and traditional finance by providing financial connectivity between the Asia and MENA regions. Another success is Crypto.com, which launched the GCC’s first crypto credit card with plans to expand their presence regionally. With strategic offices located in key markets across the world, Bahrain EDB’s Singapore-based office serves its headquarters by providing on-ground presence to advise investors and businesses based in Singapore considering relocating to new markets. Offering comprehensive services that include research-led market insights and industry assessments, Bahrain EDB supports investors’ journey from end-to-end, providing tailored aftercare services to nurture long-term partnerships.

A high-level delegation from the Kingdom of Bahrain, led by the Chairman of the Board of Trustees of the Isa bin Salman Education Charitable Trust and Chairman of the Board of Directors the Labour Fund (Tamkeen), His Highness Shaikh Isa bin Salman bin Hamad Al Khalifa, is set to join global leaders at the upcoming World Economic Forum (WEF) Annual Meeting in Davos, Switzerland from 20 to 24 January 2025, held under the theme ‘Collaboration for the Intelligent Age’.

Bahrain’s delegation includes the Minister of Finance and National Economy and Chairman of the Board of Directors of the Bahrain Mumtalakat Holding Company (Mumtalakat), HE Shaikh Salman bin Khalifa Al Khalifa, the Minister of Sustainable Development and Chief Executive of the Bahrain Economic Development Board (Bahrain EDB), HE Noor bint Ali Alkhulaif,  the Minister of Industry and Commerce, HE Abdulla bin Adel Fakhro, the President of the Court of the Crown Prince, HE Shaikh Salman bin Ahmed bin Salman Al Khalifa, the Chief Executive Officer of Mumtalakat, Shaikh Abdulla bin Khalifa Al Khalifa, the Director General of the Prime Minister’s Office, Hamad Al Mahmeed, the Chief Executive Officer of the Bahrain Tourism and Exhibitions Authority, Sara Buhejji, the Advisor to the Board at Bahrain EDB, Iain Lindsay OB OBE, as well as senior officials from Bahrain’s public and private sector.

The 55th Annual Meeting will bring together a diverse community of leading stakeholders to address key regional and global challenges facing the world economy, which include responding to geopolitical shocks, stimulating growth, and stewarding an inclusive energy transition. The 2025 Annual Meeting is expected to gather an influential assembly of global leaders from governments, businesses and civil societies, as well as the foremost scientific and cultural thinkers. With the aim of fostering new partnerships to shape a more sustainable, inclusive future in an era of rapidly advancing technology, this year’s programme will focus on five distinct and highly interconnected central themes: Reimagining Growth, Industries in the Intelligent Age, Investing in People, Safeguarding the Planet and Rebuilding Trust.

The MoU establishes a framework for cooperation in investment promotion across 15 economic sectors

During His Majesty King Hamad bin Isa Al Khalifa’s state visit to the Sultanate of Oman, where he had official deliberations with His Majesty Sultan Haitham bin Tariq Al Said, the Sultan of Oman, the two countries signed an MoU establishing a framework for cooperation in investment promotion between Bahrain and Oman. The MoU aims to raise awareness around investment opportunities and further strengthen bilateral relations.

The MoU was officially signed by H.E. Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, and H.E. Qais bin Mohammed Al Yousef, Oman’s Minister of Commerce, Industry, and Investment Promotion. The agreement explores cooperation opportunities across 15 key economic sectors, focusing on promoting investment, facilitating public-private partnerships, coordinating promotional activities, and fostering connections between Bahraini and Omani businesses to encourage joint ventures and strategic collaboration.

Omani investment stock in Bahrain reached USD398 million, with USD39.3 million in investment inflows in 2023 alone. The investments were made across vital sectors such as financial services, insurance, mining, healthcare, real estate, and construction, reflecting a commitment to diversifying economic ties.

The Prime Minister of the Kurdistan Region,  Masrour Barzani, accompanied by a distinguished delegation, recently visited the Bahrain Economic Development Board’s (Bahrain EDB) headquarters, in the presence of H.E Noor bint Ali Alkhulaif, Minister of Sustainable Development, Chief Executive of Bahrain EDB and senior representatives from Bahrain’s investment promotion agency.

During the meeting, Her Excellency Noor bint Ali Alkhulaif underscored Bahrain’s commitment to fostering international partnerships, strengthening bilateral relations, and discussing areas of mutual interest, reinforcing Bahrain EDB’s commitment to attracting investment and positioning the Kingdom of Bahrain as a gateway to the Gulf for global investors.