Gulf Daily News - 14th August 2007 - MANAMA - Bahrain is succeeding in becoming an investor's gateway to the Middle East and North Africa (Mena) region, says a local economist. More and more new companies are choosing Bahrain as their headquarters and others in the region are looking to shift their offices here, Mashal Group chief executive director and economist Dr Yousef Mashal told the GDN.
This is as a result of the economic strategy initiated by the Crown Prince and BDF Commander-in-Chief Shaikh Salman bin Hamad Al Khalifa through the Economic Development Board (EDB), he said.
Investors are choosing Bahrain because of its economic and social freedom and freedom of movement, as well as the benefits provided by the government, added the economist.
"The government of Bahrain provides full ownership to investors, it provides a resident permit and investors can sponsor their own employees and buy their own land and property here and this is an additional benefit," explained Dr Mashal.
"And price wise it is more feasible to set up a company in Bahrain that anywhere else in the region.
"We also have much more experience dealing with international and multinational companies since Bahrain has been a hub for these companies for the last 50 to 60 years and we know how to provide these services and at what cost.
"All this gives Bahrain an edge over other countries."
Dr Mashal said Bahrain has also put in place strategies to train and educate its workforce and this has assured investors they will be provided with the employees they need.
"All this started with the plans and blueprint by the Crown Prince through the EDB and we have started seeing the implementation of the labour and educational reforms and we are now seeing the start of economic reforms," he said.
"This is also in a move to reduce dependence on declining oil reserves and encourage foreign investment by diversifying the economy."
Testimony of Bahrain's economic freedom can be seen in the Heritage Foundation's 2007 Index of Economic Freedom report, which ranked Bahrain as the freest economy in the Gulf and the second out of 17 Middle East and North African countries. Bahrain's economy scored highly in several of the 10 factors of economic freedom, including business freedom, fiscal freedom, monetary freedom and financial freedom.
It also confirms the United Nations Economic and Social Commission for Western Asia citation that Bahrain is the fastest growing economy in the Arab world.
"In a short period of time Bahrain has become the second freest economy in the Mena region. This is a very good sign and is what investors in the world will be looking at," said Dr Mashal.
"It shows the strategy taken by the Crown Prince through the EDB is becoming fruitful. Bahrain has a right and known strategy and has taken steps to eliminate the red tape in doing investment in Bahrain and that's why the report ranks Bahrain high in all 10 factors."
The report also notes Bahrain's economy as being ideal in several respects, including tax and banking freedom and issues of security on property.
Dr Mashal said the country had a highly regarded legal system that allows foreign firms to resolve disputes satisfactorily through the local courts with no prohibitions on the use of international arbitration to safeguard contracts.
Because of its communications and transportation infrastructure, regulatory structure, and cosmopolitan outlook, Bahrain has become home to many multinational firms that do business in the region, he said.
"Bahrain has also succeeded in developing itself as a financial hub," noted Dr Mashal.
"It has seen the establishment of more than 100 offshore banking units and representative offices, as well as 65 American firms, and the country has become the leading Islamic finance centre housing the largest concentration of Islamic financial institutions worldwide."
Bahrain Today 
