Invest in Bahrain 2018 - 116.62.78.71

2018

Invest in Bahrain

Introduction to Bahrain

Saudi Arabia

Saudi Arabia

IraqJordan

Yemen

Oman

UAE

Kuwait

BAHRAIN

770 km²Area

Population

Languages

1.5 million (50% expats)

English & Arabic

Real GDP

Growth3.9% (2017)

A Quick Overview

FDI Inflows USD$ 733 million (2017)

Bahrain lies at the heart of the Arabian Gulf, with

fast and efficient access to every market in the

Middle East by air, sea and road

Source: Information and eGovernment Authority

Logistics

Short times to markets and high quality customer service

Financial Services

Home to over 400 financial institutions

Manufacturing

The fastest, cheapest & most efficient gateway to the region’s largest market

Tourism, Real Estate,

Education & Health

12.7 million visitors in 2017

Diverse Investment Opportunities

ICT

Booming start-ups scene and home to the region’s AWS

data center HQ

Place

Access to

Growing Market

Skilled Talent

& High Quality

of Life

Cost Effective

Business

Environment

A Track Record

of Innovation

People Price Pioneer

Bahrain’s Strengths

PlaceAccess to a growing market

7

Easy Access to the US$1.5 trillion Market

440

million

36

millionMENA Consumers GCC Consumers

King Fahad Causeway

30 mins

1,000+

20,000+

from Bahrain to Eastern Province of KSA

trucks crossing on a daily basis

passengers crossing on a daily basis

Planned King Hamad Causeway

Bi-Modal causeway connecting Bahrain to the GCC

via road and railway network

Khobar Riyadh Kuwait UAE Muscat

8 hrs

45 mins

4 hrs

45 mins

4 hrs

45 mins

30 mins

35 mins

12h 45m

1h 30m

US$2

trillionGCC market

by 2020

Saudi Arabia

Riyadh

MuscatAbu Dhabi

Kuwait

Khobar

Bahrain

Dubai

Strong Bilateral RelationshipsEstablished Globally

Free Trade Agreements

Investment Protection & Promotion Agreement

34countries

Free Trade Agreements

22countries

Double Taxation Avoidance Agreement

41countries

KSA UAE KUWAIT OMAN

USA SINGAPORE EFTA

Greater Arab Free Trade Area*

*GAFTA members: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen

PeopleSkilled Talent

& High Quality

of Life

Skilled Local Workforce Bahrainis employed in highly skilled sectors

65% Bahrain workforce in Financial Services

Over a third are women

Source: Global Human Capital Report 2017, LMRA

Training and Incentives Offered by Tamkeen for Bahraini Employees

Up to 70%of salary costs for

2 years

Up to 100%of training costs

¹ First two years, subject to Bahraini employment

Highly Educated & Bilingual Local Workforce

Bahrain

Highest high school education attainment in the GCC*

KSA UAE Kuwait

85%79%

56%

21%

*Age group 15 – 24

15 higher education institutions

78 vocational training institutions

74 Private Schools

Bahrain is ranked as the top expat destination out of 65 countries

InterNations Expat Insider Survey 2017

Rich Culinary Experience Beach Lifestyle High Quality Schools

Diverse Retail Offerings Unique Identity Expanding Calendar of Events

High Quality of Life

PriceLower cost of Doing Business

15

lower than UAE33% lower than KSA15%

Lowest Operating Costs in the Region

Bahrain UAE

US$ 829,930

US$ 1,246,106

KSAAssumptions: 5,000m² land, 3,000m² built up area, 3 employees in the set-up phase, 16 employees in the operating phase.; UAE: JAZA; KSA: KAEC

Average operating costs

per year (USD)Bahrain UAE KSA

Annual license renewal fees 133 1,496 1,335

Land rental 13,265 35,020 27,074

Manpower 648,850 811,300 746,500

Visa cost 8,528 9,072 33,920

Utility cost 150,983 365,742 149,325

Blue collar accommodation 8,171 23,476 15,999

Total Cost 829,930 1,246,106 974,153

US$ 974,153

Source: KPMG Cost of Doing Business Report (Manufacturing 2017)

16

Manpower Costs

(USD per year)Bahrain UAE KSA

CEO 170,000 210,000 200,000

Personal Assistant 30,000 40,000 40,000

Accountant 30,000 40,000 40,000

Supervisor 20,000 30,000 20,000

Total 250,000 320,000 300,000

Source: KPMG Cost of Doing Business Report (Manufacturing 2017)

lower than UAE lower than KSA22% 17%

Most Affordable Local Workforce in the Region

17

Low Cost of Living

Average Annual

Cost of Living (USD)Bahrain Dubai Abu Dhabi

Residential - 3 bedroom villa 33,000 55,440 48,120

Electricity & water 3,916 6,292 5,113

Domestic help remuneration 2,700 6,360 5,640

Education 11,636 21,595 15,321

Total 51,252 89,687 74,194

Source: KPMG Cost of Doing Business Report (Financial Services 2018)

lower than Dubai43% lower than Abu Dhabi31%

Bahrain Dubai

US$ 51,252

Abu Dhabi

US$ 89,687

US$ 74,194

corporation taxes

NO

personal income taxes

NO

wealth taxes or tax on capital gains

NO

NO‘Free zone’restrictions

100% Foreign ownership

allowed (in most sectors)

An Open and Liberal Market

19

We go into regions for the long term, and we chose Bahrain because of the process in place for creating the right environment.

Teresa Carlson

Vice President. Worldwide Public Sector

Amazon Web Services

PioneerA Track Record of Innovation

21

Bahrain was the 1st in the region to

Start formal education

Discover oil Open an

internationalairport

Start a diversification

strategy

Establish a banking sector

Introduce Islamic banking regulations

Liberalize the telecoms market

Adopt a cloud-first policy

1919 1932 1932 1960

1961 2001 2004 2017

A Pioneer in the Region Since 1919

Opportunities

23

Emerging opportunities in Bahrain

Physical

InfrastructureSoft

Infrastructure

Startup

& Digital

Infrastructure

New Oil

Discovery

24

Transportation Manufacturing Real Estate

Physical Infrastructure

Airport Infrastructure Development

Modernisation of the airport’s infrastructure and

cargo handling capacity

Increasing the airport’s capacity from 8 to 14

million passengers p.a.

Increasing cargo to 1 million metric tonnes p.a.

King Hamad Causeway

Connecting Saudi Arabia and Bahrain, in

addition to the existing King Fahad Causeway

Expected to result in an estimated 30%-50%

lower import costs

BAPCO Modernisation & Expansion

Modernisation and expansion of the BAPCO oil

refinery

Alba Line 6 Development

Development of Aluminium Bahrain (Alba)’s Line 6

Set to become the world’s largest single-site

smelter

Molten metal park currently under development

Bahrain Bay

Waterfront development which includes Four

Seasons Hotel, Wyndham Grand Manama

Hotel, The Avenues Mall.

Dilmunia Island

A residential and mixed use development with a

special emphasis on wellness and preventative

health

Approximate total Gross Floor Area of

1,800,000 square meters

US$32 billion of infrastructure investment in Bahrain over the next 5 years

US $1.1 bn 2019

US $4 bn 2022

US$ 3.5 bn 2019

US$61 bn 2021

US$ 1.8 bn 2020

US$ 2.5 bn 2020

25

The Largest Oil & Gas Discovery in 8 decades

Khaleej Al

Bahrain Basin

How the discovery compares globally

Location Resources (barrels)Technically

Recoverable

Jordan (Wadi Sirhan) 4 billion 100 million

Oman (Rub Al-Khali) 24 billion 1.2 billion

Egypt (Abu Gharadig) 47 billion 1.9 billion

Bahrain (Khalij Al Bahrain) 81.5 billion TBC

Libya (Tannezuft Shale) 104 billion 5.2 billion

UAE (Shilaif Formation) 367 billion 22 billion

Source: Higher Committee for Natural Resources and Economic Security, Google, US Energy Information Administration

80 billion 10-20 trillionbarrels of tight ‘oil in place’ cf3 of deep gas reserves

• Ready to connect facilities nearby

• Estimated time to develop the site: 5 years

• Supporting long-term downstream activities

Bahrain Energy Fund

“We are delighted to

announce the launch of

the Bahrain Energy Fund –

a real innovation for the

region. For the first time,

institutional investors will

have the opportunity to

gain access to energy

assets.”

H.E. Shaikh Mohamed bin

Khalifa Al Khalifa

Minister of Oil

US$ 1 billion

Seed Capital Investors

Downstream

Projects

Mid-stream

Projects

Upstream

Projects

Energy Infrastructure Projects

Causeway Reforms to

Improve Access to KSA

OCT 2015 MAR 2016 OCT 2016

Trusts Law

Protected Cells

Company Law

Reduction of Minimum Capital

Requirement

AUG 2017

APR 2017 JUN 2017

Limited Investment

Partnership Law

Cloud First

Policy

Fintech Regulatory Sandbox

Crowdfunding

Regulations COMINGSOON!!

Soft Infrastructure

Bankruptcy Law

Secure Transaction Law

Data Protection Law

EKYC….

& Digital Infrastructure

A growing number of

Incubators & Accelerators

Access to High Net Worth

Individuals

Active community &

supportive government

Building an environment that supports the growth of start-ups and ancillary

businesses around a digital ecosystem

Bahrain's small size

makes it an ideal test bed

29

Accelerators

& Incubators

Corporates Ecosystem Education Funding Government

Startups

Service

Providers

TM

The Ecosystem

30

Initiatives

Funding

Minimum viable Products

Crowdfunding

High Net Worth Individuals

Angel Investors

VC’s – Fund of Funds

Private Equity – Mumtalakat

Talent & Training

Amazon Educate

UOB Women’s Training Udacity

– Courses

Amazon Web

Services

MENA’s first hyperscale Cloud

Region arrives in Bahrain in

early 2019

Fintech Bay

The leading FinTech Hub in the

Middle East

Fintech Week

Euromoney Conference

(19-21 Feb 2018)

Tech Week

MIT

AWS Summit

(24-28 Sept 2018)

StartUp Week

Unbound

GCC Game Conference

My Startup Bootcamp

(3-8 Mar 2018)

Events Virtual Community

Startupbahrain.com

@startupbahrain

Blockchain

Coming soon

Recent Success Stories

32

2017 Successes

Mena’s first hyperscale

Cloud Region arrives in

Bahrain in early 2019

Careem Mobile

Taxi Services

Launching region’s

first biometric

payment network

Self served personal

bank by GIB

Regional distribution

center & integrated

logistics solution

Mondelez Biscuit

Factory

Jewelry

manufacturing facility

Regional distribution

center

33

Bahrain’s excellent pro-business approach, superb local skilled manpower, cost-effective environment including a highly competitive taxation system, and the ease to market for our products remain convincing and unbeatable reasons for our group to operate from the BIIP.

Mohammed Shalaby

Mondelez Plant Director

Bahrain Economic Development Board

A dynamic public agency, chaired by HRH the Crown Prince,

attracting and assisting companies to set up in Bahrain

Guidance

Advice and

information to

support the

decision making

process

Facilitation

Access to grants

and assistance

with company

registration

Aftercare

Ongoing support

for business

development and

expansion

Account Manager

A Global Footprint Across 18 Locations

• Germany (Frankfurt &

Munich; covers Austria

and Switzerland)

• UAE

• UK

• France (covers Italy)

• South Korea

• Nordics

• Japan

• India (Mumbai and New

Delhi)

• Hong Kong

• China (Beijing and

Shenzhen)

• Malaysia (covers

Thailand and Indonesia)

• Saudi Arabia

• Turkey

• USA (East Coast and

West Coast)

Thank You!

Please contact us for more information

@bahrainedb

www.bahrainedb.com [email protected] +973 1758 9999

Appendix

Airport Infrastructure Development Modernization of the airport’s infrastructure and cargo handling capacity

Increasing the airport’s capacity from 8 to 14 million passengers per annum

Increasing cargo to 1 million metric tonnes per annum

Estimated Value: US$1.1 Billion

Estimates Completion Date: 2019

King Hamad Causeway

Connecting Saudi Arabia and Bahrain, in addition to the existing King Fahad Causeway

Expected to result in an estimated 30% to 50%

Estimated Value: US$4 Billion Estimates Completion Date: 2022

Physical Infrastructure Transportation

Alba Line 6 Development

Development of Aluminium Bahrain (Alba)’s Line 6

Set to become the world’s largest single-site smelter

Molten metal park currently under development



BAPCO Modernization & Expansion Modernization and expansion of the BAPCO oil refinery

Estimated Value: US$6 Billion Estimates Completion Date: 2021 (EPC Contract will be awarded in 2018)

Physical Infrastructure Manufacturing

Dilmunia Island

A residential and mixed-use development with a special emphasis on

wellness and preventative health

Approximate total Gross Floor area of 1,800,000 square meters



Bahrain Bay

Waterfront development which includes Four Seasons Hotel, WhyndhamGrand Manama Hotel, The Avenues Mall

Estimated Value: US$2.5 Billion Estimates Completion Date: 2020

Physical Infrastructure Real Estate

41

Policy Advocacy Initiatives

Transition to a

Digital Economy

Improve Business

Licensing Procedures Improve SMEs

Ecosystem

➢ Bankruptcy law

➢ Access to government

procurement

➢ Secured transactions

law

➢ Enforcement of

contracts

➢ MVP Funding

➢ Export Development

➢ Industrial Startups (GE

Pilot program)

➢ Aluminum downstream

park

➢ BLZ II

➢ BIA Cargo village

➢ Industrial Land

Enhance Logistics

& Manufacturing

Ecosystem

Strengthen

Access to KSA

➢ Nationalization and

qualification

requirements (ARAMCO

IKTVA program)

➢ Cloud data storage

➢ Passporting funds and

linking information

➢ Pharma distribution to

KSA

➢ Cloud and data hosting law

➢ Data protection law

amendments

➢ Electronic transferable

records law

➢ Electronic transactions law

amendment

➢ Technology skills

development-Udacity

Connect Program

➢ Blockchain

➢ Cybersecurity

➢ Crowdfunding regulations

refinement

➢ Evolve into Sijilat 2.0

➢ Streamline current KYC

processes and introduce

digital KYC

➢ Maritime & Coastal Leisure

Activity Licensing

➢ Review foreign ownership

limitations of E-commerce

activities

➢ Streamline procedures for

attaining construction

permits

➢ Streamline procedures for

getting electricity

connection

➢ Liberalize tour operators

42

Icons & Illustrations

43

Steps to Gather New Icons:

1. Visit: http://www.flaticon.com/

2. Search for icon

3. Download “PNG” format

4. Select the size 512 pixels

5. Choose your preferred color

6. Click on “Download”

http://www.flaticon.com/

44

Maps

Steps to change color of an image:

1. Double click on the image

2. Click on “Color” from the Format tool bar

3. Select the most suitable color (go to

“More Variations” for more color options)

Growth, Profit, Startups, Incubator, Regulatory Sandbox Money, Tax, Salary, Profit, Costs

Teamwork, People, Person, Employee(s)

General 1/2

Causeway

Favorable Business Environment, Trade, Support

Training, Lecture, EducationTime

Diversification Network, facilitation, ecosystem

Quotation marks

Tick, thumbs up/down

Family

System BFH, WTC

General 2/2

Location Pin

Lock, secure, unlock Foreign Ownership Law(s), governmentoffice

Social Media

GCC CountriesUSA, Singapore, EFTA

China, Japan, India, Germany, UK, Malaysia, Singapore, South Korea, Turkey Globe, Strategic Location

Contact

47

T&L

47

Tourism, Travel, Airplane

Shop, Store, Retail, Shopping

Hotel, Tourist

Healthcare

Real Estate, company, building, house

Beach, Entertainment, Ferris wheel, rollercoaster, desert, cinema, leisure, Restaurant

Cruise, ship

Transportation, airplane, car, van, train, ship, port

Factory, Industrial Utilities, land

Raw Materials, Spare Parts, Machinery, Construction, Industrial Services, cargo, oil & gas, warehouse, parking Food

MTL

Consumer goodsPackaging Renewable energy

Construction, contractor, officer

ICT

49

Gaming console, augmented reality Ipad, Smart phone, telephone Cyber security, secure payments

Call centers, BPO Network, Ecosystem

CablesLaptop E-Commerce, Payments

Wifi, Technology, Cloud

Online payments

Accelerator

FS

50

Financial Services

Payments, Money, Cash, Credit Card

E-Commerce GrowthPayment Methods

Central Bank Online payments

Startups & Fintech

E-commerce, online shopping, online payments Cloud technology, Wi-Fi, internet, IOT

Innovation, light bulb, idea Augmented Reality, 3D, gaming, robotics Cyber Security

Network, Connect Education, graduate, training

Money, tax, salary, costs, Financial Services

Manufacturing, Logistics, Healthcare, tourism, startups, ICT

Teamwork, People, Person, Employee(s), Family, children, friendship

Time Law, gov. Growth, Chart

Crowdfunding

Agreement, ownership, accelerator, launch, award, regulatory sandbox, laptop

NOTE: These colourful icons

should only be used with the

StartUp Bahrain PPT template

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Startups & Fintech

52

Money Electronics Light bulb, idea

Growth, graph, chart Arrows

Regulatory Sandbox Social Media, internet Bahrain Calendar Thought bubble




Startups & Fintech

LaunchCheckmark, thumbs up Globe Cloud

Other




54

Diagram Samples

For more diagrams, visit https://diagrammer.duarte.com/

Note: Kindly stick to the EDB’s template colours.

https://diagrammer.duarte.com/

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Graph Heading, Arial Bold, 12pt Graph Heading, Arial Bold, 12pt Graph Heading, Arial Bold, 12pt

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Sign off name

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Invest in Bahrain 2018 - 116.62.78.71

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