Companies with 100 per cent foreign ownership could be allowed to do business in specific sectors in Bahrain.
Under new rules issued by Deputy Prime Minister Shaikh Khalid bin Abdulla Al Khalifa, and published in the recent edition of the Official Gazette, the business should have a capital of BD100,000 or equivalent in other currencies.
The annual revenue of its parent company should be at least 750 million euros or equivalent in Bahraini dinars, and the business should also be present in at least 10 other global markets.
However, the sectors were not mentioned.
Companies operating under the previous requirement of 51pc Bahraini ownership don’t fall under the new rule.
Also, contracts signed for trademark items before the introduction of the new rule don’t fall under its purview.
Separately, in a decision issued by the Industry and Commerce Minister Abdulla bin Adel Fakhro, amending fines under the 2016 Commercial Registrations (CRs) Law executive bylaws, the fine will be annually BD500 for non-renewal of CRs following the end of the third year with the maximum being BD5,000.
Strategic Thinking Bloc president MP Ahmed Al Salloom, who is also Bahrain Chamber board member, said the new foreign ownership move is part of Bahrain’s ongoing efforts to attract foreign investment, stimulate economic growth and diversify its economy.
“The new rules aim to make Bahrain an even more attractive destination for international businesses by offering full ownership rights, which previously had restrictions in certain sectors,” he explained.
“This aims to reduce bureaucratic obstacles and make it easier for international firms to establish and operate businesses in Bahrain.
“The simplification of procedures is intended to enhance Bahrain’s business-friendly environment.”
He said by allowing full foreign ownership, Bahrain aims to increase FDI (foreign direct investment), which can drive economic growth, enhance infrastructure development and create employment opportunities.
“It positions Bahrain as a regional hub for international businesses looking to access the GCC market,” he said.
“The new rules are expected to improve Bahrain’s ranking in global ease of doing business indices, making it a more attractive destination for multinational corporations.
“The regulatory changes reflect Bahrain’s commitment to reform and modernisation, aimed at fostering a business-friendly climate.”
mohammed@gdnmedia.bh
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