Main Economic Sector

With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gull. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is of Bahrain's economy are the financial W focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems.

As an island nation, Bahrain has much to be proud of. Bahrain was the first trade centre for the region, at the crossroads of Mesopotamia and India and the first GCC country to diversify its economy away from oil. What is regarded as the leading. Most established financial services regulator in the region, providing business friendly regulation to the highest international standards.

As of today nearly 400 institutions from 28 countries have been licensed to operate in Bahrain. These comprise a broad range of conventional and Islamic banking and insurance companies, seeking to capitalize on regional and financial intermediaries and asset management global trends, in addition to investment banks, companies.

Bahrain has one of the Middle East's most advanced tele-communications systems.

Bilateral Relations

Unparalleled access to the Gulf

1. Huge infrastructure investment
2. 25 km king Fahd Causeway to Saudi Arabia
3. Causeway to Qatar planned (40 km over- sea route)
4. Existing deepwater harbor Mina Salman Port
5. 14 berths and container terminal
6. New Shaikh Khalifa bin Salman Port under Construction
7. More than US$ 600m total investment Volume
8. Port management by Maersk Muller
9. Bahrain International Airport Upgrade approved
10. Major extensions of the cargo terminal
11. Regional headquarters of DHL
12. Gulf Air's main hub

Lowest tax regime in the Gull

Bahrain has the most attractive lax environment in the Gulf, With the same low or no-tax regime across the entire jurisdiction not just in designated free-zones. There are no personal income taxes. no corporation taxes, no wealth taxes or tax on capital gains, rio inheritance tax, no restriction on repatriation of capital, profits or dividends and few indirect taxes.

Best Value for money the GCC

1. Industrial land is leased at $1.03 per m2 per year. with no
2. Electricity priced at $0.03 per kWh
3. Water priced at $1.05 per m3 Petrol priced at $0.27 per liter
4. Gas priced at $0.26 per liter

Bahrain tax rates

Bahrain is the lowest tax jurisdiction within the Gulf and has no taxation collection system (as opposed to zero-rating) and does not have any ring-fenced 'free zones' it treats all individuals and companies exactly the same. There are:

1. No personal income taxes
2. No corporation taxes
3. No wealth taxes or tax on capital gains
4. No death duties or inheritance tax
5. No restriction on repatriation of capital. profit or dividends
6. No withholding taxes

There are few indirect taxes:

1. 12% on petrol note the cost of petrol 100 ills (US$ 0.26) per liter (including the tax)
2. 3% levy on hotel bills
3. 10% municipal tax on rents

The chance to grow your business healthcare

The global healthcare sector is booming. and the Gulf is no exception. To ensure international standards of excellence in care, Bahrain is establishing a new quality authority and making improvements across the entire system,., specialisms exist across diabetes and cosmetic surgery . with the health tourism sector showing strong growth. To ensure the sector is effectively staffed and resourced, government funded training programs across health science are being rolled out (since September 2006). with hundreds of trainees now enrolled.

Education and training

A major program of improvements across the education sector is underway in Bahrain covering school, higher education and vocational learning. With new quality assurance standards being set, the introduction of enhanced teacher training programs and a focus not only on retaining Bahrain student but also attracting them from neighboring GCC stales, investment opportunities in the education sector are significant . Areas of particular interest include the establishment of international universities, either as stand alone institutions or in partnership with existing teaching facilities; vocational training centre: and international school catering to local and expatriate families.

The economic development board works alongside partners in the public and private sectors to ensure that the economic climate of Bahrain offers the best possible opportunity for business success. The organization also markets the strengths of the kingdom and its companies through its overseas network of dedicated offices and its embassies across the world.

The Economic Development Board provides a facilitation service for any individuals or businesses interested in investing in Bahrain. This service includes acting as the first point of contact to the kingdom, understanding the objective of every investor, providing information regarding the relevant procedure for setting up in business, and helping to form a network of contacts in Bahrain.

Bahrain's Economic Development Board:

1. Is dedicates to facilitating foreign direct investment
2. Provides sector-specific information for investment appraisals
3. Gives assistance during government approval processes
4. Coordinates land selection and access to natural resources
5. Has dedicated investment officers and cross-Ministerial support teams
6. Builds long-term partnerships to ensure business success

Indian Embassy in Bahrain

H. E. Balkrishna Shetty
Building 182, Road 2608, Area 326, Ghudaibiya,
P0 Box No. 26106, Adliya - 326,
Telephone: 00-973-712683, 712785,7 13832 Fax: 00-973-715527
Email: hoc@indianenthassy-bah.com
Web: www.indianembassy-bah.com

Chamber of Commerce

Bahrain Chamber of Commerce & Industry
P.O. Box 248, Manama, Bahrain
Tel: (973) 233913/277290
Fax: (973) 24129

Economic Development Board
P.O. Box 11299, 7th. 8th, 12th & 13th floors
See! Tower, Al Seef district
Manama. Bahrain
Tel: +97317 589999
Fax: +97317 589900

Bahrain Promotions and Marketing Board
P.O. Box 11299, Manama, Bahrain
Tel: (973) 533886
Fax: (973) 531117

Visa Procedure

VALID or at least six months required by all. Visas: Required by all except nationals of Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
Nationals of EU Countries Australia, Canada, Japan, New Zealand, Norway, Switzerland, and USA may obtain Visas on arrival for touristic or business stays of up to two weeks. The fee is BD5/$515.
Other passport holders should apply for a visa in advance at the nearest Bahrain Embassy.
Visa can be obtained online on http://www.evisa.gov.bh/
Rules and Regulation on Obtaining Visit Visa to Bahrain

Imporlant Telephone Numbers

Hotels

Indian Hotels

Main Tourist Attraction

Tourists can visit other attractions like the Arad Fort in Bahrain, Babrain Fort in Bahrain. Riffa Fort in Bahrain and Hab Al Hahrain in llahrain. Tourists can go for tourist destinations like Dilmun Burial Mounds in Bahrain, First Oil Well in Bahrain, King Fahd Causeway in Bahrain and so on. There are interesting market places in the country which make for wonderful shopping destinations for travelers. Seine of the most popular markets are Manama Souq in Bahrain and Gold Souq in Bahrain. This is the market where one can get choicest of pure and hallrnarkd gold jeweiries and ornaments. Besides the mosques, Bahrain tourist attractions include temples like Barbar Temple in Bahrain and so on.

Bahrain attracted 4.5 million business and leisure visitors in 2006, up 15.5 percent on 2005 ,according to the UN World Tourism organization. Now, with a kingdom wide 'lburism strategy focused on niche, boutique and MICE sectors, more opportunities are opening up for investors across hospitality, travel and leisure

The strategy is focused on growing family tourism, especially from within the GCC, as well as on the business traveler. Offerings are being developed to cater to both of these audiences, with conference and event facilities for the growing MICE industry. There is also a drive to increase cultural tourism. The annual spring of culture festival-a celebration of art, music, dance and literature extends the high season around the Gulf Air Bahrain Grand prix, the only Formula One race in the Middle East

Main Imports

Crude Oil, Machinery, Chemicals

Main Exports

Petroleum and Petroleum Products, Aluminum and Textiles, Crude oil and Petrochemicals.

Airport & Harbour

Bahrain International Airport & Port of Mina Salman

Bahrain Useful Websites

www.bahrain.com
www.bahrainairport.com
www.bahraintourism.com
www.bahraintribune.com