2011 Bahrain Country Commercial Guide - US - Export.gov

More documents

Recommendations

Info

Government has renewed the contract with CARS until April 2012. The Government‘s total investment in the public transportation privatization project has reached approximately USD 21 million. The Kingdom's first independent power plant project (IPP) was also successfully tendered and awarded to Bahraini-based Al Ezzel Independent Power Producer (IPP), which is equally owned by a Belgian-Gulf consortium of Tractebel EGI and Gulf Investment Corporation. In 2006, the Government sold their biggest electrical plant Al Hidd Power Station for USD 728 Million to the consortium. In 2008, the Tender Board awarded a USD 2.2 billion contract to build a new electrical power plant in Bahrain—the Al Dur Water and Power Station—to Kuwait-based Gulf Investment Corporation(GIC) and France's GDF Suez. In September 2009 the Higher Commission of Electricity awarded a $240 million contract to General Electric purchase new gas turbines as part of a plan to expand the existing Al Dur Power Plant. In 2008, the Government founded the General Organization of Ports to oversee all port activities, including both marine and air. In 2006, Denmark‘s Muller was awarded a contract to manage Mina Salman and the new Mina Khalifa ports. The new port officially started operating in November 2009. In 2006 the Bahrain Monetary Agency transformed into the Central Bank of Bahrain (CBB). Seeking to maintain Bahrain's status as the Gulf region's preeminent financial center, the CBB changed its licensing practices in 2006 to give banks greater opportunities to invest domestically and regionally. The CBB has been active in developing regulations for the Islamic Banking sector, and has been instrumental in making Bahrain a recognized center of Islamic Banking. In January 2011, the Bahrain Stock Exchange was transformed to a closed shareholding company. The newly-branded Bahrain Bourse is wholly owned by the GOB and regulated by the Central Bank of Bahrain. Bahrain Bourse now plans to increase its number of listed companies, boost share turnover and attract new domestic and foreign investors. The Bahrain Bourse allows GCC firms and GCC citizens to own up to 100 percent of listed Bahraini companies. Non-GCC firms/citizens may own up to 49 percent of listed Bahraini companies, and 100 percent of foreign companies. In November 2011, the Central Bank of Bahrain (CBB) announced that the banking sector is considered sound and stable, despite the ongoing civil & political unrest in Bahrain and the region. After urging by the CBB, Islamic banks have begun merging to create stronger entities, enhance competitiveness and allow the sector to overcome the financial crisis. In March 2004, as part of an effort to stimulate the insurance industry and reinforce Bahrain's position as a major insurance center in the Middle East, the Bahrain Monetary Authority -- now the Central Bank of Bahrain (CBB) -- loosened ownership restrictions. Insurance firms, which were previously required to have at least 51 percent Bahrainiownership, are now permitted to operate with 100 percent foreign-ownership. The CBB is holding consultations on further reform in areas such as captive insurance, solvency, business conduct, risk management and financial crime, enforcement, BMA reporting and public disclosure, intermediaries, and Islamic insurance. Taxation and import laws apply equally to Bahraini and foreign-owned companies, and foreign investors must comply with the same requirements and legislation as local firms. 62
Bahrain requires that pharmaceutical products be imported directly from a manufacturer with a research department and that the products be licensed in at least two other GCC countries, one of which must be Saudi Arabia. Drugs and medicines may be imported only by a drug store or pharmacy licensed by the Ministry of Commerce after approval by the Ministry of Health. Bahrain prohibits the importation of weapons (except under special license), pornography, wild animals, radio-controlled model airplanes, foodstuffs containing cyclamates, and children's toys containing methyl chloride (and other articles declared harmful by the Ministry of Health). Bahrain has phased out most subsidies for export industries, but permits duty-free importation of raw materials for export products and of equipment and machinery for newly-established export industries. All industries in Bahrain, including foreign-owned firms, benefit from Government subsidized utilities. Bahrain offers several advantages to U.S. and other foreign investors. In May 2001 a Bilateral Investment Treaty with the United States came into force. The U.S.-Bahrain Free Trade Agreement has been in force since August 2006. The Government actively seeks Bahraini and foreign private investments in large infrastructure projects. Previously, most of these activities were funded by development agencies from other Gulf countries (particularly Kuwait, UAE, and Saudi Arabia). Foreign-owned companies are eligible for partial financing from the state-owned Bahraini Development Bank (BDB), and Tamkeen, if they meet certain criteria such as providing training and employment to a significant number of Bahrainis. A period of political and civil unrest began in Bahrain on February 14, 2011. As of March 2012, demonstrations continue, occasionally devolving into violent clashes between demonstrators and police (see Political Violence, below). These violent clashes between security forces and demonstrators often make travel in and around Bahrain dangerous without advance warning. There are no indications that Westerners or U.S. citizens are being targeted directly, but isolated examples of anti-U.S. sentiment have been seen on the streets and have taken on the form of U.S. flag burning during demonstrations. The unrest has had a limited impact on American businesses in Bahrain. In early 2011, some foreign companies temporarily evacuated their employees and dependents to neighboring countries. Many of those employees and dependents did return to Bahrain by the end of the year. In 2011 and 2012 all travelers to Bahrain faced increased scrutiny from Bahraini authorities, and the Government of Bahrain refused to allow some U.S. citizens permission to enter Bahrain. The use of official travel bans -- prohibiting an individual from leaving the country until a business or legal dispute is resolved -- is a cause for concern. In 2010, 2011 and 2012, the Embassy received several reports of travel bans imposed on Americans and other foreign citizens over business disputes. Under current law, any party can request a travel ban on another by filing a request in court and paying a nominal fee. It can take months or years to get a ban lifted. A person under a travel plan also cannot depart Bahrain in order to change employers. There are a few American citizens under a travel ban due to unpaid debts, but also unable to seek new employment due to the travel ban. 63
Page 1 and 2:
Doing Business in Bahrain: 2012 Cou
Page 3 and 4:
double oil production by 2013. In 2
Page 5 and 6:
An on-the-ground presence in Bahrai
Page 7 and 8:
Return to table of contents Chapter
Page 9 and 10:
Economic Development Board (EDB) Te
Page 11 and 12: Establishing Manufacturing Faciliti
Page 13 and 14: Office rents (2011 figures) High-en
Page 15 and 16: 1. Upon the submission of the appli
Page 17 and 18: e a matter of Bahrain‘s national
Page 19 and 20: There are two daily English languag
Page 21 and 22: Food & Hospitality Expo / Health &
Page 23 and 24: CDs, software, clothing, and househ
Page 25 and 26: qualified partners.Receive complete
Page 27 and 28: Return to table of contents Chapter
Page 29 and 30: Medical Equipment/Healthcare Overvi
Page 31 and 32: Air Conditioning and Refrigeration
Page 33 and 34: http://www.moic.gov.bh/moic/en Mini
Page 35 and 36: Opportunities Return to top Telepho
Page 37 and 38: Bahrain's underdeveloped insurance
Page 39 and 40: Education and Training Overview Ret
Page 41 and 42: Electrical Power Overview Return to
Page 43 and 44: Water Desalination Overview Return
Page 45 and 46: Construction Overview Return to top
Page 47 and 48: Agricultural Sectors Return to top
Page 51 and 52: Following the completion of the Cus
Page 53 and 54: Food and Drug Administration, Offic
Page 55 and 56: Customs Regulations and Contact Inf
Page 57 and 58: comment on proposed foreign technic
Page 59 and 60: As of October 2011, Bahrain had bil
Page 61: In an economy largely dominated by
Page 65 and 66: The GCC Commercial Arbitration Cent
Page 67 and 68: eliable system of recording such se
Page 69 and 70: financial crisis, coupled with the
Page 71 and 72: Bahrain and the U.S. signed a bilat
Page 73 and 74: In January 2011, the Ministry of Co
Page 75 and 76: Return to table of contents 75
Page 77 and 78: The Central Bank of Bahrain (CBB) r
Page 79 and 80: Bahrain Development Bank http://www
Page 81 and 82: For the latest travel advisories, p
Page 83 and 84: Other Health Information: Informati
Page 87 and 88: U.S. Agriculture Trade Office - Dub
Page 89: Return to table of contents Chapter
show all

2011 Bahrain Country Commercial Guide - US - Export.gov

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?