In a strategic move to spur more investment, Bahrain, known as the Arabian Gulf’s most petite oil producer, recently granted golden licences to five companies that have committed over $1.4 billion to extensive investment projects within the kingdom.
This initiative is a part of Bahrain’s larger strategy to shift its economic focus from oil and promote business expansion. The past few years have seen Bahrain rolling out several plans to foster growth. In 2021, a significant economic reform plan was set in motion, pledging around $30 billion towards pivotal projects intended to fuel post-pandemic growth, heighten job opportunities for locals, and magnetise foreign direct investments.
Following this ambitious plan, the government proposed cost-saving measures with an end goal of generating over 20,000 jobs for its citizens by the upcoming year. The efficacy of these efforts is evident. Bahrain’s economy bolstered by 4.9% the previous year, marking the most commendable growth rate since 2013, predominantly driven by the country’s non-oil sectors.
Initiated in April, the golden licence scheme extends a host of benefits to both local and international corporations. These perks range from priority in land allocation for investments and expedited access to governmental services like building permit approvals to financial support avenues through the Bahrain Development Bank and the labour fund, Tamkeen.
Furthermore, beneficiaries can anticipate an enhanced collaboration with diverse governmental departments, a dedicated account manager courtesy of Bahrain’s Economic Development Board, and a potential revision of standing laws or regulations as deemed necessary.
The principal objective behind this enticing scheme is clear: to pull in investments from both domestic and international shores, thereby facilitating economic progression and local job creation.
To qualify for this golden ticket, companies must either propose major investment initiatives that promise to introduce more than 500 jobs within Bahrain or commit to an investment exceeding $50 million. The pioneer beneficiaries of this scheme comprise notable names such as Citi, Eagle Hills Diyar, Infracorp, Saudi Telecom, and the Whampoa Group, all of which have been greenlit by the government to initiate or enhance their operations within the kingdom.
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