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2011 Bahrain Country Commercial Guide - US - Export.gov

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e a matter of <strong>Bahrain</strong>‘s national security. For <strong>gov</strong>ernment sales, except where an<br />

agent is not permitted (e.g., sales to the <strong>Bahrain</strong> Defense Force or Ministry of Interior), it<br />

is generally advisable to have a local agent to serve as a point-of-contact, provide advice<br />

on tender preparation, and act as ―eyes and ears.‖ It is generally recommended to have<br />

a local agent or contact vet tender documents prior to their submission. Bidders must<br />

meet the specifications set out in the tender and offer a competitive price in order to be<br />

successful. A local agent can provide valuable advice on pricing and timing.<br />

All major civilian projects and <strong>gov</strong>ernment acquisitions valued at BD 10,000 ($26,667) or<br />

higher are channeled through the Tender Board. The Tender Board determines the<br />

terms of bidding, invitations for bids and selection of firms for awards. The Tender<br />

Board advertises its tender openings and decisions on their website<br />

(http://www.tenderboard.<strong>gov</strong>.bh/) and in local media. Tender opportunities are published<br />

in English and in Arabic. Contracts are generally, but not necessarily, awarded to the<br />

lowest bidder.<br />

Ports, Shipping and Distribution Channels Return to top<br />

Most goods enter through Khalifa bin Salman Port (Mina Khalifa) in Hidd Industrial City,<br />

<strong>Bahrain</strong>‘s main import/export hub. The port is located in northeast <strong>Bahrain</strong>, located<br />

approximately 10 kilometers from <strong>Bahrain</strong> International Airport and 40km from the<br />

Eastern Province of Saudi Arabia. Since commencing operations in 2009, the Khalifa Bin<br />

Salman Port has established itself as a leading transshipment hub. In 2010, the Port<br />

handled 1,023 vessels including 576 container ships, 380 general cargo ships and 67<br />

cruise (tourism) ships. The adjacent <strong>Bahrain</strong> Logistics Zone (BLZ) has the potential to<br />

make Manama a major air-sea cargo hub and a center for industrial development. The<br />

Government has offered a number of incentives to attract foreign direct investment to<br />

this customs-free zone and establish <strong>Bahrain</strong> as a logistics hub for the Northern Gulf.<br />

<strong>Bahrain</strong>‘s secondary port is Mina Salman. In 2012, the Government announced plans to<br />

convert Mina Salman Port into a dedicated building materials terminal. In addition, the<br />

<strong>Bahrain</strong> Petroleum Company (BAPCO), Aluminum <strong>Bahrain</strong> (ALBA) and Gulf<br />

Petrochemical Industries Company (GPIC) have dedicated company ports. Ports are<br />

administered by the General Organization of Sea Ports (GOP).<br />

Goods can also enter <strong>Bahrain</strong> overland from Saudi Arabia via the King Fahd Causeway,<br />

or by air at <strong>Bahrain</strong> International Airport (airport code: BAH). Numerous transport and<br />

retail companies serve the domestic market. There are few logistics companies, leaving<br />

room for possible U.S. investment in this sector.<br />

Selling Factors/Techniques Return to top<br />

A carefully selected local partner can advise U.S. firms on advertising, promotion, and<br />

pricing. Due to the difference in culture and conditions, techniques and phraseology that<br />

are effective in the U.S. may not be effective in <strong>Bahrain</strong>.<br />

17

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