Quick Dive Into Bahrain Policy For Startup Convenience.

Quick Dive Into Bahrain Policy For Startup Convenience.

Bahrain:  Policies are important to every aspect of any organization. They provide a guideline for operations and check the activities of the company. Policies are also a great way for prospective founders and investors to explore the system and collate data for future investments.

Government policies play a significant role in the success of startups within the country. They dictate the access of the startup to finances, internet services and the global market at large.

Bahrain is one of the richest countries in the Middle East and North Africa. This is a result of its exploit in oil and gas from the Oil boom of 2001, which accounts for 5.5% of the economic growth and the kingdom’s investment in Tourism. It has an outstanding regulatory system with a united jurisdiction. Although the country is popularly known for its success in the Oil and Gas sector, it has long been open to many innovative ideas and explorations in the tech space.

Bahrain operates a very liberal business system that offers zero corporate taxes, income taxes and 100% foreign ownership laws. This has put them on the map as a thriving environment for growth and investments in technology. Its strategic location at the heart of the GCC also makes it the best environment for a startup to test, launch and grow in the GCC and regional market.

Bahrain and Startup Ecosystem

Due to a highly advanced ICT infrastructure and government-backed development programs, the Kingdom’s start-up eco-system seems to be on a solid foundation. Bahrain’s welcoming environment has aided many firms and individuals to turn their passions and problem-solving ideas into a successful businesses.

Tech startups in the country also benefit from a wide range of government-supported schemes such as Tamkeen, a  government agency which offers programmes like business development, a co-finance scheme to fund infrastructure costs, training and provides a salary support system for new employees. It also launched a financial and management training program for entrepreneurs, in partnership with the Bahrain Institute of Banking and Finance (BIBF) in 2022. As a means to provide skilled training for entrepreneurs in Bahrain and enhance their strategic and financial planning skills.

Another notable government scheme is Taqdeer, which was created as an employee reward programme that gives incentives in order to motivate companies that exceed their targets for recruitment of Bahraini nationals and encourage foreign companies to hire their citizens.

Along with its infrastructure and friendly business laws, the Kingdom also offers startups many crucial advantages such as low operational costs, fast-paced internet and affordable rental rates. Research conducted by KPMG in 2018 reports that the average cost of building and operating a Startup in Bahrain was 16% lower than the regional average and 50% lower than the average.

This has resulted in a number of startups reaching a CAGR of 46.2% over the past 3 years.

Startups benefits in Bahrain

Active Community:

Bahrain is home to a budding and accelerating tech ecosystem. According to the last recording, the nation has a population of about 1.463 million people. Its industries consist of startups, investors, educational institutions and government organizations that provide support to companies looking to establish their business in Bahrain.

It also provides access to funding and grants, co-working spaces and mentoring. A good example of this community is StartUp Bahrain which is the largest startup community in the country. Launched in 2013, the initiative was set up to create an environment that supports and stimulates growth and entrepreneurship in the tech space.

StartUp Bahrain has also established a platform that brings together all enterprises and startups, looking to set up or expand their business in Bahrain

Bahrain FinTech Bay is also a community that offers a dedicated ecosystem for startups in this segment, providing commercial space and support.

They also have incubators such as Rowad, managed by the Bahrain Development Bank and Riyadat, which targets female-owned start-ups to provide help and funding.

Budding Environment: Located in the Persian Gulf, the Kingdom’s urbanization rates exceeds 90%. Its startup scene is steadily growing at a rapid pace with many companies in diverse sectors such as software development, eCommerce, food,  cybersecurity, health, and FinTech.

Startups located in Bahrain enjoy proximity to other countries which facilities networking and growth tendencies.

Strong Telecom Infrastructure: Telecommunications infrastructure in Bahrain is one of the strongest in the region. They have a total of 93% internet penetration among its citizens. With this, startups are assured that the common citizen will have an access to their innovations when launched.

Growing economy

Bahrain has one of the most developed economies in the region. Tech startups enjoy the luxury of a stable economy as it runs their daily affairs.  This is because the economy of Bahrain continues to scale the global ladder. The World Bank reports that Bahrain’s annual GDP grew by 2.2% in 2021 and 3.3% in 2022. With this, startups are assured of constant sales and expansion of the company.

The stable economic climate also provides a better avenue to secure investors and funding for their projects.

Bahrain policies remain one of the most convenient for startups in the gulf region. The government-backed schemes make it easier for startups to achieve their potential and respective goals.