The fruits of normalization: full tax exemption, a warm welcome to foreign companies, low labor costs and good living conditions have launched the capital of Bahrain in the coveted ranking
The political agreement between Israel and Bahrain was officially signed today (Sunday), and normalization between the countries began - a very important strategic step from an economic point of view.
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Bahrain is considered a very attractive country for investment - businesses in the country enjoy a full tax exemption and foreign-owned companies are also given the opportunity to operate in the country under these conditions.
The World Bank recently announced Bahrain as fourth in the world in the ranking of improving economies, in the ease of doing business index.
This rating was awarded to Bahrain thanks to the accelerated processes of digitization in the fields of banking and finance.
The capital, Manama, is considered the most attractive investment city out of 150 in the world, according to the AIRINC'S International Research Institute.
The index examines a combination of wages, tax rates, cost of living and living conditions.
"Bahrain is determined to become the most attractive investment destination in the Middle East," the official website of the Bahrain government said.
The Bahraini government notes that it is interested in foreign investment, mainly in the following areas: financial services, industrial and logistics services, real estate, artificial intelligence and telecommunications. The corona hit Bahrain similarly to Israel. Compared to the same period last year, oil profits, which account for 85% of the country's total profits, fell by 35% at an annual rate while other industries recorded a 13% decline.
The government in Bahrain has poured more than $ 10 billion into the economy and raised the debt threshold to $ 40 billion, in order to help the distressed economy.
The assistance gives its signals in the form of a jump in consumption at rates of 12% and 28%, respectively, in June and July.
Exports grew by 12% in July, as did the construction and engineering, real estate, oil and services industries.
Preparing to give service
"The normalization of relations with Bahrain and the agreement signed last night in Manama are another step in opening up new possibilities, political and economic," says the chairman of the Export Institute, Adiv Baruch.
We at the Export Institute are preparing to address Israeli companies and exporters, similar to the activities that are already underway with Dubai, Abu Dhabi and the Emirates. "
Meanwhile, the Israeli and Emirati finance ministries have successfully concluded negotiations on an investment incentive and protection agreement.
The agreement deals with the promotion and protection of Israeli investors operating in the United Arab Emirates and of Emirate investors operating in Israel.
Finance Minister Israel Katz: "The fact that this important economic agreement is among the first to be agreed upon symbolizes the strength of the economic ties that are being forged between the countries."
Deputy Emirati Finance Minister Yunis Haji al-Khuri added: "We are proud to expand our network of agreements and look forward to being the first Arab state to sign an agreement to encourage and protect investment with Israel."