Bahrain has moved to improve its start-up ecosystem as part of plans to further diversify the economy, launching a new funding and training initiative specifically targeting entrepreneurs and small and medium-sized enterprises (SMEs). In early March Tamkeen, the national labour fund, launched the Flat6Labs Bahrain accelerator programme in partnership with Egypt-based, regional start-up facilitator…
The kingdom of Bahrain’s well-regarded legislative and regulatory framework, talented human capital, strategic location and conducive business environment have established it as a leading regional financial centre. The country’s development plan, Bahrain Economic Vision 2030, aims to enhance private sector growth, and continue government investment in infrastructure, affordable housing and human…
Successful spending rationalisation measures introduced in the wake of the oil price drop have helped to reduce the country’s fiscal deficit, while revenue enhancing initiatives such as the implementation of value-added tax are expected to further reduce it over the medium term. Meanwhile the kingdom has maintained its focus on economic diversification initiatives. Manama remains a leading finan
Bahrain has moved forward with plans to improve national infrastructure as part of its economic development strategy, announcing a series of tenders relating to the upgrade and expansion of the country’s airport. MODERNISATION: In early 2018 Bahrain Airport Company (BAC) issued concessions for works related to airport security at Bahrain International Airport (BIA), including the construction…
Bahrain’s efforts to narrow its fiscal deficit is taking place across a number of fronts. On the revenue side of the equation the awaited introduction of value-added tax is expected to have the single-biggest impact over the next two years. In terms of cutting costs, the ongoing reduction of energy subsidies is garnering considerable attention, as Bahrainis become accustomed to paying near-market…
Bahrain has been a regional magnet for foreign direct investment (FDI) for decades. The accumulation of foreign capital over many years means that, relative to the size of the economy, it figures more prominently on the national balance sheet than in any other GCC state: according to the June 2017 “Economic Quarterly” report by the Economic Development Board (EDB), in 2016 total inward…
The rapid evolution of the financial technology ( fintech) arena has presented a dilemma to regulators across the world. The industry is emerging as one of the most vibrant segments of the wider financial services sector, and in 2015 collected over $22bn in investment, according to the Central Bank of Bahrain (CBB), a figure that is expected to grow exponentially over the coming years. The…
Small businesses play an important and growing role in Bahrain’s economy. According to the Labour Market Regulatory Authority, more than 90% of licensed companies had less than 10 employees in 2016 and approximately 98% of them employed less than 50 people each. The activity of this prominent part of the economy has become easier to track in the last decade: the Ministry of Industry, Commerce…
In October 2016 the Bahrain Bourse (BHB) obtained permission from the Central Bank of Bahrain (CBB) to establish the Bahrain Investment Market (BIM), paving the way for the exchange to open its much-anticipated market to small to mid-cap companies. Officially launched in March 2017, the initiative is in accord with the government’s broader target of boosting small and medium-sized enterprise…
The landscape for fixed income has evolved significantly over the last few years and never has the argument for Bahraini bonds as a natural diversifier been stronger than in the last 12 months of 2017. BUOYANT BONDS: Bahraini bonds as an asset class have survived significant headwinds in 2017, including the ongoing discussion among GCC member states, heightened geopolitical risk, three rate…
