Bahrain's Business Environment by Philip Dew

By Philip Dew

This certain advisor to the commercial tasks now attracting international traders to Bahrain emphasizes the Kingdom's position as a neighborhood monetary hub. It offers overviews of key sectors: common assets, production, telecommunications and estate, and a transparent rationalization of the felony and regulatory framework, banking, finance, accounting, taxation and advertisement practices crucial for overseas traders and enterprise companions

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4 International Trade Ministry of Industry and Commerce, Bahrain Importance of international trade Bahrain has been at the centre of Middle East trade for centuries, and whilst ancient trade in spices and pearls has given way to other products and services, trade remains the cornerstone of the Bahrain economy, an economy which is highly dependent on foreign markets for its requirements of manufactured goods as well as a destination for its domestic merchandise and services producers. The importance of trade in terms of the Bahrain economy is manifested in the ratio of exports and imports of goods and services as a percentage of GDP, which in the period 2002–2005 averaged 129 per cent.

Working closely with the BCCI, the MOIC works to expand trade relationships, encourage joint ventures and generally to facilitate international trade. As an integral part of Bahrain’s MOIC, the Directorate of Foreign Trade Relations plays a pivotal role in assisting and developing trade relations between Bahrain and the international trade community. A thorough understanding of local, regional and international trade legislation enables the Directorate to assist with virtually any trade-related matter.

The privatization of state enterprises was officially made government policy in 2002, and the programme has moved forward since then, with divestments mainly centred on the tourism, utilities, transport and communications sectors. One of the largest moves to date has been the privatization of the operatorship of Bahrain’s two main ports—Mina Salman and Khalifa bin Salman Port. A Danish company, APM Terminal, won the tender in 2006. The port sale is a good example of the government’s dual privatization strategy.

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