4 Reasons to Start Up in Bahrain
Bahrain’s growing and supportive ecosystem, business-friendly environment, strategic proximity and easy access to the gulf market, and liberal policies and regulations make it a top contender for startups to test, launch and scale their business. The Bahraini government has taken many initiatives to enhance the Kingdom’s entrepreneurial ecosystem in order to attract entrepreneurs and startups from across the globe. Entities such as Tamkeen, Economic Development Board (EDB) Bahrain, Startup Bahrain, Bahrain Fintech Bay and most recently Flat6Labs Bahrain, which launched in March 2018 at Unbound Bahrain, are actively enabling, supporting and connecting entrepreneurs. Attitudes towards entrepreneurship are also shifting; a recent Ernst & Young study (2017) found that around 70% of young Bahrainis are ‘interested in the idea of starting their own business’, twice as many as anywhere else in the Gulf.
1. Growing and supportive ecosystem
Bahrain has built a supportive infrastructure and community that local and international startups can directly benefit from. This is evident in the growing network of investors and venture capital (see Tamkeen & Tenmou); incubators, accelerators and work spaces; startup events (see Unbound Bahrain & Startup Bahrain Week), and supporting entities (see Economic Development Board (EDB) Bahrain) and corporates (see Microsoft). As the latest addition to this network, Flat6Labs brings its successful acceleration model to Bahrain with the aim to support and invest in more than 40 local and international startups and entrepreneurs over the next three years.
2. Business-friendly
Bahrain’s government works closely with businesses and regulators to explore opportunities to enhance the Kingdom’s business environment and cultivate optimum commercial conditions. This crucial collaboration has brought into action multiple initiatives that encourage innovation and allow entrepreneurs to thrive.
Bahrain is ranked 2nd in MENA in the ‘Ease of Doing Business Index’ (World Bank, 2017). Its highly competitive taxation system (see below), skilled and trained pool of local talent and competitive office rent and operating costs make it an attractive location for entrepreneurs to set up shop and scale in the region and beyond. Also, the cost of doing business in Bahrain is approximately 30% lower than neighboring Qatar and Dubai.
3. Easy access to the Gulf market
Bahrain is ranked 7th globally for market connectedness (2017 Agility Emerging Markets Index). Its strategic geographic location and excellent logistics channels provide the fastest and most efficient connections to the Gulf Cooperation Council (GCC) by road, sea and air. Bahrain, therefore, is a platform for entrepreneurs to access the fast growing, $1.5 trillion Gulf market, which has a sizeable (355 million), young (average age of 22 years old) and digitally enabled population (mobile adoption of 124%).
4. Liberal regulatory environment
Startups will benefit immensely from Bahrain’s liberal economic and business-related policies and regulations. The Bahraini government has simplified incorporation and reduced minimum capital requirements for businesses, thus reducing costs and easing set-up and operation processes, and offers foreign entrepreneurs 100% foreign land and business ownership in most sectors (even outside of free zones) as well as reductions in visa fees.
The Kingdom also has a competitive taxation system — for example, they charge zero corporate tax (0% corporate income tax and 0% personal income tax) and only 5% Value Added Tax (VAT) for any company regardless of the nationality of its founders.
Entrepreneurs are increasingly realizing the strong value proposition that Bahrain presents. According to AngelList, the number of entrepreneurs choosing Bahrain as their base has increased over the past three years at a Compound Annual Growth Rate (CAGR) of 50%.
We are happy to have chosen Bahrain as the sixth Flat6Labs location and look forward to helping provide the Bahraini innovation economy and venture capital industry with a steady pipeline of high-impact entrepreneurs.
Apply for Flat6Labs Bahrain’s first acceleration cycle here.
Sources:
- Inspiring Growth: 2017 Annual Report, Economic Development Board (EDB) Bahrain
- Bahrain wants startups to call it home, Rachel Williamson
- The Bahrain Economy is Opening Up & Wants to On Board Indian Players, Aashika Jain
- EDB and Tamkeen announce the “Startup Bahrain Week” Activities, Startup MGZN
- Is Bahrain the region’s next innovation hub?, Kathryn Semcow
- As government pushes entrepreneurship in Bahrain, innovation is the new oil, Sindhu Kashyap
- Startup Bahrain
- Bahrain EDB
