There are many good reasons for setting up a new entrepreneurial venture in Bahrain. For a start, the string of government incentives on offer are hard to ignore. Bahrain is also the perfect gateway to markets in the wider Middle East and beyond. And the wealth of the region, much of it built on the back of incredible oil and gas reserves, is legendary. In other words, there’s plenty of money sloshing around, more than enough for any would-be entrepreneur seeking to turn a solid idea into a profitable venture. Need some more good reasons?
How about access to first-rate financial services both for the business you’re looking to set up and for any workers you aim to employ. Opening a current account in Bahrain is a reasonably straightforward exercise, even for expatriate employees, although the production of a passport, residence permit and tenancy agreement to provide proof of an address almost goes without saying. Some banks may also require an applicant to produce a letter from their employer detailing the salary which will be paid into the account each month.
Economic Freedom
Heard of the Index of Economic Freedom, the annual guide published by The Wall Street Journal and the Washington-based think tank The Heritage Foundation? Of course you have. The good news is that Bahrain ranks highly in the 2013 Index – again. In fact Bahrain is ranked 1st out of 15 countries in the Middle East and North Africa (MENA) region, and its economic freedom score is well above the world average. It even ranks higher than the United Kingdom!
The index says, “As a regional leader in economic freedom, Bahrain sets a critical example for other countries in the Middle East and North Africa. Its transition to greater openness, diversification, and modernization is based on strong foundations of economic freedom. Firmly institutionalizing the rule of law by enhancing judicial independence and transparency will be critical to stamping out lingering corruption and ensuring success in this ongoing evolution.
“Despite the challenging external and internal environments, Bahrain has maintained above-average levels of economic freedom in almost every measure. It remains a financial hub for dynamic economic activity, with high levels of trade and investment bolstered by a competitive and efficient regulatory environment.”
So What About The US?
Tries hard but could do better just about sums up the United States these days. The US has lost ground in the Index yet again, with declines in monetary, business, labour and fiscal freedoms. According to the Index, “Registering a loss of economic freedom for the fifth consecutive year, the US has recorded its lowest Index score since 2000. Dynamic entrepreneurial growth is stifled by ever-more-bloated government and a trend toward cronyism that erodes the rule of law. More than three years after the end of recession in June 2009, the US continues to suffer from policy choices that have led to the slowest recovery in 70 years.”
But there’s much more to mull over. Restoring the US to a place among the world’s “free” economies, says the Index, will require significant policy reforms, particularly in reducing the size of government, overhauling the tax system, transforming costly entitlement programs, and streamlining regulations. So not much to fix then!
Still worried about setting up an entrepreneurial venture in Bahrain? Thought not! Read more from the 2013 Index of Economic Freedom here.