The Bahrain Economic Development Board (EDB) has released updated guidance aimed at supporting foreign investors considering business establishment and expansion in the Kingdom of Bahrain. The guidance outlines Bahrain’s regulatory framework, ownership policies, tax environment, and available institutional support, providing a structured overview of the investment landscape for international businesses.
The published guidance is intended to help investors understand the practical steps involved in entering the Bahraini market, from company formation and licensing to post-setup support. The guidance emphasises Bahrain’s role as a strategic regional base, enabling companies to scale operations across the GCC from a single, cost-efficient jurisdiction.
According to the guidance, Bahrain allows 100 per cent foreign ownership across most economic sectors, enabling international companies to operate without the requirement for a local sponsor. This framework is supported by the Commercial Companies Law and complemented by economic zones that facilitate activities such as logistics, manufacturing, and technology services.
The document also outlines Bahrain’s tax structure, which includes no personal income tax and no corporate income tax outside the oil and gas sector. Capital gains and dividends are generally untaxed, while a 10 per cent Value Added Tax (VAT) applies to goods and services. In line with global tax reforms, the guidance notes that a 15 per cent minimum tax for large multinational enterprises is scheduled to take effect from January 2025, with small and medium-sized enterprises remaining outside the scope.
Bahrain’s strategic location is highlighted as a factor supporting regional market access. The Kingdom is connected to Saudi Arabia via the King Fahd Causeway and operates established air and sea freight infrastructure, enabling distribution across the GCC and international markets.
The guidance further details the role of the Bahrain Economic Development Board in facilitating investment. Through dedicated relationship managers and sector specialists, the Bahrain Economic Development Board provides tailored, no-cost facilitation to investors, coordinating directly with relevant authorities to accelerate approvals and project execution. These services are designed to streamline market entry and align investment projects with Bahrain’s economic development priorities.
Business registration and licensing procedures are managed through the Ministry of Industry and Commerce via the Sijilat digital platform, which centralises commercial registration, licensing, and approvals. The guidance explains how digital processing has reduced administrative timelines and improved transparency for investors.
The release also references independent cost-of-doing-business studies conducted in collaboration with EY, which indicate that Bahrain maintains a cost-competitive operating environment compared to other GCC jurisdictions, particularly in sectors such as logistics, manufacturing, and financial services.
Beyond initial establishment, the guidance highlights Bahrain’s post-setup support ecosystem, including advisory services, export development assistance, and sector-specific growth programmes designed to support long-term expansion.
The full guidance is available through the Bahrain Economic Development Board’s platform, detailing current Investors Business opportunities and sector-specific considerations for foreign companies evaluating Bahrain as a regional base.
About the Bahrain Economic Development Board
The Bahrain Economic Development Board is the Kingdom’s investment promotion agency, responsible for attracting foreign direct investment and supporting the growth of Bahrain’s private sector. Working in partnership with government bodies and industry stakeholders, the EDB provides strategic guidance and facilitation services to investors across priority economic sectors.