Bharain Business Facts1

Why Bahrain: 

Why Bahrain Bahrain's history as a successful trading and business nation goes back more than 4,000 years, when the Dilmun civilization lay at the heart of the world's trade routes. In modern times, Bahrain was the first nation in the Gulf to discover oil - and the first to recognize the need to diversify its economy. Today, we are home to thriving businesses in financial services, in the downstream sector, in business support services, in tourism and in many other areas. Bahrain's fast-growing economy attracts a higher proportion of foreign investment than any other Gulf State.

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The reasons for that include : Strategic location at the heart of the Arabian Gulf, providing ideal access to the GCC per cent foreign ownership for most categories of business .100 Highly favorable tax environment, with no corporate, personal, value-added or withholding tax Sustained low rate of inflation of under 2 per cent a year No restriction on repatriation of capital, profits or dividends Cost-efficient, trained and bilingual human capital Full customs duty exemption on capital goods and goods destined for re-export, raw materials for manufacturing, semi-finished commodities imported for further processing, imports required for development projects, and initial imports of capital goods by a manufacturing company. Modern high standards of living within a cosmopolitan family atmosphere. World class international airport and regional air traffic hub Causeway connection to Saudi Arabia, the largest single market in the region, with new causeway connection to Qatar planned Mature legal and administrative infrastructure. ‘ One-stop’ facility for all information and applicant processing needs of investors.

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Taxation There are no personal income taxes in Bahrain No wealth taxes No Capital Gains tax No death duty tax or inheritance taxes Education The education system in the Kingdom of Bahrain meets the needs of a competitive economy. Numerous international educational institutions and schools have established links to Bahrain. There is a choice of Bahraini, British, American, and Lebanese curriculum in private schools .Employment: Labour Force: 380,000 (2005 est.)

The financial capital of the Middle East: 

The financial capital of the Middle East Over the past 30 years, Bahrain has earned a reputation as the financial capital of the Middle East. Key contributing factors to this unchallenged position include a central bank (the Bahrain Monetary Agency) respected for its track record of strict but flexible regulation, a liberal economic environment, and a well-trained local workforce Today, Bahrain is home to over 370 onshore and offshore conventional and Islamic financial institutions, the largest concentration in the region. These local, regional and international institutions comprise of commercial banks, investment banks, leasing banks, insurance and reinsurance companies, fund managers, legal and advisory services, financial consultants, international regulatory agencies, real estate investment trusts, and professional institutes. The financial sector contributes around 25 per cent to the Kingdom’s GDP and provides employment for over 6,000 people.

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Bahrain has a strong established base of leading international companies and financial institutions. They have been attracted by the Kingdom's buoyant economic growth and positive political developments. Bahrain is commitment to highest international standards and best practices, a pro-business culture and world class infrastructure, independent judicial system, and a friendly cosmopolitan lifestyle An ambitious programmer of economic, political and social reforms Bahrain will ensure that it continues to enhance its business environment to provide attractive and rewarding investment opportunities for the international business community. .

The gateway to the Gulf: 

The gateway to the Gulf Bahrain has long been known as the ‘Gateway to the Gulf’. From its strategic location at the heart of the Arabian Gulf, it built a reputation as a friendly and hospitable meeting place for travelers, and a bustling depot for merchants and traders. A well respected member of the Arab world, Bahrain enjoys friendly relations with all its neighbors. A founding member of Gulf Cooperation Council (GCC) along with Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, the Kingdom is an active supporter of regional initiatives such as the creation of Gulf and Arab common markets, and the adoption of a single GCC currency. Bahrain, therefore, constitutes an ideal base for investors seeking to make the most of the huge potential of the GCC region, one of the world’s most attractive emerging markets. The GCC has an overall population approaching 60 million people, a total GDP estimated at around US$ 500 billion, and an average per capita GDP of US$ 19,000. The region’s GDP is growing at an average rate of 5.5 per cent, while total imports amount to over US$ 110 billion per year. In addition, the close proximity of Bahrain and the GCC to the wider Middle East market opens up even greater opportunities for businessmen and investors. The importance of Bahrain’s status as a regional investment base was highlighted by the Kingdom’s recent Free Trade Agreement (FTA) with the US. These two countries alone share a mutual trade approaching US$ 1 billion per year, and this landmark FTA will help to open up further new export opportunities for US industries, not only in Bahrain but also the rest of the region.

An open and democratic society: 

An open and democratic society

World class infrastructure : 

World class infrastructure Bahrain's world class infrastructure provides investors with a full range of business support services, plus a modern, high standard of living and a cosmopolitan family atmosphere. Business support services include a well-regulated financial services sector and a mature legal and administrative structure. Many leading banks and insurance companies, and international law firms and business consultancies have set up their regional headquarters in Bahrain. The Kingdom’s formal legal system is the oldest in the Gulf, dating back to the 1920s. Acknowledging the importance of a sound and comprehensive legal system that facilitates business and investment. Bahrain has established several laws that cover different aspects of business, and ensure that the rights of international investors are protected. These include the Commercial Companies Law and various Intellectual Property. Bahrain’s telecommunications infrastructure is the most mature and advanced in the GCC. It dates back to 1864 when Bahrain was connected to the Indo-European undersea telegraphic cable, heralding the beginning of the Kingdom’s telecommunications industry. In 1999, Bahrain became one of the first countries in the world to have a fully digitized network..

Bahrain Facts & Figures : 

Bahrain Facts & Figures : Official Title: Mamlakat Al-Bahrain, Kingdom of Bahrain Bahrain is an Arabic word meaning "Two Seas", and refers to two facts, one that the islands contain two sources of water, sweet water springs and salty water in the surrounding seas, or to the south and north waters of the gulf, separating it from the Arabian coast and Iran, respectively. Location: Bahrain is an archipelago of 40 islands in the Arabian Gulf midway between the Qatar peninsula and Saudi Arabia. Bahrain Island is a pear-shaped land mass 48 km. long and 16 km. wide. Bahrain is connected to Saudi Arabia by 23-km causeway, which opened in November 1986. Capital: Manama Total Land Area: Bahrain has a total area of 711 sq km (274 sq mi) Climate: hot summers, pleasant winters Bahrain Time Difference: GMT + 3 Governorates: Bahrain is divided into five governorates Capital Central Muharraq Northern Southern

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People Total Population: Population of Bahrain (July 2006 estimate) is 698,585 )Population Growth: 1.45% (2006 estimate Official Languages: The official language is Arabic. English is very widely spoken and is the principal language of commerce. 3 Governments Head of State: King Hamad bin Essa Al-Khalifa Head of Government: Sheikh Khalifa bin Salman Al-Khalifa Crown Prince and Commander-in-chief of the Bahrain Defense Force: Sheikh Salman bin Hamad Al-Khalifa Parliament: Bahrain has a legislature with a lower house, the Chamber of Deputies, elected by universal suffrage and the upper house, the Shura Council, appointed by the King. Both houses have forty members. The inaugural elections were held in 2002, with parliamentarians serving four year terms Membership: Bahrain is a member of the UN, Arab League, Gulf Co-operation Council and the Organization of the Islamic Conference 4 Economic Indicators A Growing Economy Bahrain is the fastest growing economy in the Arab world, the United Nations Economic and Social Commission for Western Asia found in January 2006 Bahrain also has the freest economy in the Middle East according to the 2006 Index of Economic Freedom published by the Heritage Foundation/Wall Street Journal, and is twenty-fifth freest overall in the world. Bahrain is home to numerous multinational firms with business in the Arabian Gulf

Major Development Projects: 

Major Development Projects Bahrain is experiencing an economic boom, with several projects designed for the improvement of facilities and convenience of lifestyle. Bahrain is the fastest growing economy in the Arab world, the United Nations Economic and Social Commission for Western Asia found in January 2006. Bahrain also has the freest economy in the Middle East according to the 2006 Index of Economic Freedom published by the Heritage Foundation/ Wall Street Journal, and is twenty-fifth freest overall in the world. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Arabian Gulf. Below is a list of some of the major development projects in the kingdom, which have been recently initiated and are due for completion in the near future . Bahrain Financial Harbor Riffa Views Durrat Al-Bahrain Amwaj Islands Al-Areen Development Bahrain Bay Bahrain World Trade Centre Lulu Island Abraj Al-Lulu (Pearl Towers)

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Amwaj Island Amwaj Islands are a group of man-made islands reclaimed from the crystal clear waters off the north coast of Muharraq island, Bahrain. The development covers an area of some 30 million square feet, within easy access of the heart of Manama, and combines residential neighborhoods, commercial districts, and spectacular leisure resorts, with a unifying architectural theme, a smart city environment, fast new road networks, medical and educational facilities and all the sports and entertainment amenities required, in today's high- tech lifestyle. Amwaj Islands is equipped with an advanced voice, video and data communication network over fiber optics that provides residents with fast internet connection, online shopping and much more. Under Bahrain's real-estate laws, properties on Amwaj islands can be purchased by expatriates, which has led to a tremendous demand for luxurious seafront homes. www.amwaj-islands.com

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Bahrain Bay Bahrain Bay is a joint venture between Arcapita Bank B.S.C.(c) and a Bahrain-based investment group, that has been formed to oversee a $1.5 billion development off the North East coast of Manama in the Kingdom of Bahrain. Bahrain Bay will be a balance of commercial, residential and retail spaces, all set around the Manama waterfront and the centerpiece will be the Kingdom’s first Four Seasons hotel The project will be executed in three distinct phases. Phase One will involve a 430,000m 2 land reclamation and infrastructure development, to commence in January 2006. Phase Two will involve the construction of the two anchor developments, the Four Seasons hotel and the new global headquarters building for Arcapita which is scheduled for completion in early 2008. Phase Three will involve the development of residential, retail and commercial sub-projects around the anchor developments. At final completion, expected in December 2010. The total built area will be over 1.1 million m2, master plans as well as architectural and design standards for the development has been completed by Skidmore, Owings & Merrill, a leading architecture and urban design firm, who are reflected in the concept designs completed for the Four Seasons hotel and Arcapita. The result will be the creation of an ultra-modern, urban environment featuring iconic structures. . www.bahrainbay.com

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Bahrain World Trade Centre The Bahrain world Trade Centre is a symbol of achievement and a reflection of momentum behind the region's fast growing economy. Its innovative design combines the essential elements of lifestyle and business to create a powerful emblem of aspiration and accomplishment. The Bahrain World Trade Centre is more than its landmark commercial towers, offering amenities such as an exceptional shopping and dining environments, a five-star hotel and sophisticated office accommodation. .Located on the Bahrain Commercial Complex site (north-facing) and adjacent to the Sheraton Hotel in the heart of the city, the towers of the BWTC will become one of the tallest building in central Manama. BWTC offers direct access to the King Faisal Highway, one of Bahrain's main arterial routes. The central location of this exciting new destination is just a 15-minute drive from the International Airport connecting Bahrain to the world, and it also places businesses and visitors within a short drive of the majority of ministries and major companies on the island. The King Fahad causeway, which links Bahrain to Saudi Arabia, provides access to the . strategic markets of the, one of the GCC's fastest growing economies. A future causeway currently proposed will connect Bahrain to Qatar.www.bahrainwtc.com return to top

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Lulu Island Lulu Island is a man-made island being built on the coast of Al Manama, in the Kingdom of Bahrain. The BHD 280 million (US$ 1.25 billion) freehold development project will cover an area of 564 thousand square meters (6.1 million square feet) and be located close to the Pearl roundabout, along with being moments away from Abraj Al Lulu and the Bahrain Financial Harbor [BFH[ Lulu Island is being designed in the shape of the number 9 and will contain 39 residential buildings with a total of 1,217 apartments with waterfront or lagoon views. It will also contain 1 residential icon tower, 49 chalets, 65 Arabian-designed villas, a 325 room five-star hotel, marina, yacht club, an aquarium, medical centre, shopping mall, and a multi-function exhibition centre. .Lulu Island is being built as a joint venture between the Bahrain government and the Bahrain-based Mouawad Group Real Estate Development Company. The development was designed by Austrian-based Spowers and Pentago. www.lulu-island.com