Economy grew by 4.9 per cent last year and authorities are aiming to spur more investment into the kingdom
Bahrain, the Arabian Gulf’s smallest oil producer, this week awarded golden licences to five companies that have made large-scale investment projects in the kingdom totalling more than $1.4 billion.
The move comes as the kingdom, like other countries in the region, intensifies efforts to diversify its economy away from oil and support businesses to expand their operations.
Bahrain has unveiled several initiatives in the past few years to support growth.
In 2021, the government launched a major economic reform plan to invest about $30 billion in strategic projects to drive post-pandemic growth, boost employment for citizens and attract foreign direct investment.
Under the multi-year plan, the government adopted cost-rationalisation measures and aims to create more than 20,000 jobs for citizens by next year.
Bahrain’s economy grew by 4.9 per cent last year,the highest rate since 2013, underpinned by a robust performance in the country’s non-oil sectors.
What is Bahrain’s golden licence initiative?
Bahrain launched the golden licence initiative in April this year.
As part of the scheme, it is offering various benefits to local and international companies. These include prioritised allocation of land for investments, infrastructure services and utilities as well as streamlined access to government services such as building permit approval. There will also be support from the Bahrain Development Bank and labour fund Tamkeen, which provides businesses with financing opportunities.
Other advantages include integrated co-operation with various government departments, a designated account manager from Bahrain’s Economic Development Board, as well as potential review of existing laws or regulations where necessary and applicable.
What are the goals of the new scheme?
Bahrain’s golden licence scheme aims to attract investment from local and international companies to support the growth of the economy and create jobs locally.
Which companies qualify for a golden licence?
Companies with major investment and strategic projects that will create more than 500 jobs in Bahrain, or those with investment value exceeding $50 million are eligible to secure the licence and expand their operations in the kingdom.
Local and international companies including Citi, Eagle Hills Diyar, Infracorp, Saudi Telecom and the Whampoa Group were the first to be awarded licences by the government to start new projects or expand their operations in the kingdom.