Invest in Bahrain 2018 - 116.62.78.71
Transcript of 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
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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$2
trillionGCC market
by 2020
Saudi Arabia
Riyadh
MuscatAbu Dhabi
Kuwait
Khobar
Bahrain
Dubai
Strong Bilateral RelationshipsEstablished Globally
Free Trade Agreements
Investment Protection & Promotion Agreement
34countries
Free Trade Agreements
22countries
Double Taxation Avoidance Agreement
41countries
KSA UAE KUWAIT OMAN
USA SINGAPORE EFTA
Greater Arab Free Trade Area*
*GAFTA members: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen
PeopleSkilled Talent
& High Quality
of Life
Skilled Local Workforce Bahrainis employed in highly skilled sectors
65% Bahrain workforce in Financial Services
Over a third are women
Source: Global Human Capital Report 2017, LMRA
Training and Incentives Offered by Tamkeen for Bahraini Employees
Up to 70%of salary costs for
2 years
Up to 100%of training costs
¹ First two years, subject to Bahraini employment
Highly Educated & Bilingual Local Workforce
Bahrain
Highest high school education attainment in the GCC*
KSA UAE Kuwait
85%79%
56%
21%
*Age group 15 – 24
15 higher education institutions
78 vocational training institutions
74 Private Schools
Bahrain is ranked as the top expat destination out of 65 countries
InterNations Expat Insider Survey 2017
Rich Culinary Experience Beach Lifestyle High Quality Schools
Diverse Retail Offerings Unique Identity Expanding Calendar of Events
High Quality of Life
PriceLower cost of Doing Business
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lower than UAE33% lower than KSA15%
Lowest Operating Costs in the Region
Bahrain UAE
US$ 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)
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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
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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
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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
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Emerging opportunities in Bahrain
Physical
InfrastructureSoft
Infrastructure
Startup
& Digital
Infrastructure
New Oil
Discovery
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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
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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
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Accelerators
& Incubators
Corporates Ecosystem Education Funding Government
Startups
Service
Providers
TM
The Ecosystem
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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
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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
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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
Estimated Value: US$3.5 Billion
Estimates Completion Date: 2019
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
Estimated Value: US$1.5 Billion
Estimates Completion Date: 2010
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
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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
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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”
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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
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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
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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
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Money Electronics Light bulb, idea
Growth, graph, chart Arrows
Regulatory Sandbox Social Media, internet Bahrain Calendar Thought bubble
NOTE: These colourful icons
should only be used with the
StartUp Bahrain PPT template
Startups & Fintech
LaunchCheckmark, thumbs up Globe Cloud
Other
NOTE: These colourful icons
should only be used with the
StartUp Bahrain PPT template
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Diagram Samples
For more diagrams, visit https://diagrammer.duarte.com/
Note: Kindly stick to the EDB’s template colours.
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Graph Heading, Arial Bold, 12pt Graph Heading, Arial Bold, 12pt Graph Heading, Arial Bold, 12pt
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