Companies in the oil and gas sector are subject to a high tax rate of 46% of their net profits. This applies to domestic and foreign owners alike. However, the standard corporate tax rate for most other companies is 0%, so this is offset.
When you are ready to set up a company in Bahrain, make sure that the name you choose for your company follows Bahrain’s naming conventions and is not already in use by another organization.
Next, register your business with MOICT with your business plan, partner or owner ID, and registration fee.
trade stocks in bahrain
Bahrain is one of the most vibrant financial centers in the Middle East. Investment promotion laws and strategic positioning certainly helped the case.
Bahrain Stock Exchange, originally known as Bahrain Stock Exchange (BSE), is Bahrain’s main stock exchange where 42 companies trade.
Bahrain’s stock exchange operates on an established framework with a reputation for transparency and security of capital.
Fortunately for those investing in Bahrain from abroad, it is often not necessary to visit Bahrain in person to open a brokerage account and trade on the local stock exchange.
Many brokers allow non-locals to open accounts and trade stocks remotely. Additionally, foreign investors can now own up to 100% of the shares of companies listed on the Bahrain Stock Exchange.
Bahrain’s bond market is highly developed and ranges from government bonds to corporate bonds, providing investors with fixed income exposure.
Bahrain currency: Dinar (BHD)
The Bahraini Dinar (BHD) is pegged to the US dollar and is known for being relatively stable compared to more exotic currencies in the Middle East.
BHD is issued and managed by the Central Bank and is available in banknotes of 1, 5, 10, 20 and 50 dinars.
Currency exchange is possible at banks and ATMs throughout Bahrain. Banks here accept most major international credit/debit cards, making transactions easy for tourists and expats alike.
Fixed BHD to USD exchange rate makes it a reliable currency for your financial planning and investment decisions. Officially, 1 BHD is 2.65 USD.
Bahrain’s large foreign exchange reserves, managed by the central bank, help ensure its ability to maintain this peg.
bahrain industry
The petrochemical industry is the main pillar of Bahrain’s economy. Key players include companies such as Bapco (Bahrain Oil Company), the national oil company and largest operator.
In addition to the obvious oil investments in Bahrain, goods such as aluminum are also staples of industry here. The medical sector is also experiencing steady growth as modern pharmaceutical factories become more popular here.
Bahrain’s location in the heart of the Persian Gulf makes it an important transport and logistics link. Khalifa Bin Salman Port and Bahrain National Logistics Gateway are also making a major contribution here.
These ports play an important role not only for Bahrain but also for the entire Middle East and North Africa region, which is itself a major commercial gateway.
Bahrain Cryptocurrency
In 2018, the Central Bank of Bahrain became the first financial regulator in the Middle East and the second in the world to issue formal regulations for crypto assets.
A year later, the CBB also introduced extensive rules regarding the licensing and operation of crypto-related businesses such as exchanges and wallet service providers.
Cryptocurrency businesses must obtain a CBB license to operate legally in Bahrain. A process that includes detailed due diligence on your business, management team, etc.
Companies must comply with AML/CFT requirements such as CDD and TM procedures. The cryptocurrency industry must also protect consumer data in accordance with data protection laws.
As a blockchain pioneer, Bahrain has established itself as the Gulf region’s go-to destination for blockchain-related technology solutions and research activities, inviting global entrepreneurs to create new projects to enhance their offerings. Experimenting with ideas.
Bahrain’s crypto industry is still developing. As Bitcoin, Ether, and other coins become more widely used around the world, government stances on cryptocurrencies may also evolve.
Buy property in Bahrain
Foreigners can own freehold property in Bahrain as long as it is located within an area designated for foreign ownership. These zones include Amwaj Island, Abraj Al Lulu, Al Juffair, Al Reef Island, Durat Al Bahrain and Durat Marina.
It is expected that more zones will be opened to foreign buyers in the near future. Within these current zones you will find a variety of apartments, villas, and townhomes.
