Free Trade Zones

Free zones in Bahrain provide optimum business opportunities for international companies to do business in and from , those international businesses seek to have a presence in the region enjoying one of the freest economies offering tax exempts , 100% foreign ownership in some industries and minimal custom duties.

Bahrain has three trade zones which all appeared as top free zones in the FDI magazine⁽¹⁾, they are:

Bahrain Logistics Zone (BLZ)⁽²⁾

BLZ was launched in 2008 occupying 1km2 of prime real estate strategically located adjacent to the Kingdom’s state-of-the-art Khalifa Bin Salman Port (KBSP) in Northern Bahrain, 13 KM away from Bahrain International Airport, and 40 KM away from Saudi Arabia

Bahrain Logistics Zone is the region’s first boutique logistics park. Regulated and managed by the Ports and Maritime Affairs at the Ministry of Transportation and Telecommunications, the BLZ offers local, regional and international companies a base to establish and operate freely in a customs-bonded area and places them in a perfect position to pursue the growing Northern Gulf and GCC market opportunities quickly and more economically.

BLZ offers these benefits to its investors:

• The low cost for establishing and running a logistics business.

• full foreign company ownership is allowed,

• a favorable tax regime is also in place to drop the cost burdens on BLZ-based companies as no corporate, personal income or inheritance taxes are imposed and 100% repatriation of capital, profits and dividends is allowed in the Kingdom of Bahrain.

• wide selection of land plots come with a ready-to-use infrastructure on site providing the necessary utilities of water, sewage, electricity and telecom; all of which can be easily plugged into facilities.

• a convenient grace period starting from 12 months onwards granted to all tenants in order to facilitate their setup and construction process at the zone.

• 24/7 customs presence. To ensure a streamlined movement of inbound and outbound cargo,

• Dedicated account managers are also available to provide on-going tenant care services and facilitate a hassle-free setup process and convenient tenancy journey in the zone. This includes guidance through the local requirements and mediation with the municipal and other government entities to obtain the necessary permits.

Bahrain International Investment Park (BIIP)⁽³⁾

The Bahrain International Investment Park (BIIP) was established in 2005 by the Ministry of Industry, Commerce and Tourism as the country’s flagship industrial park. Home to 114 multinational and indigenous manufacturing and services companies, and employing over 5,200 people, BIIP has been a key driver in developing Bahrain’s economy since its establishment in 2015.

Approximately 80% of investment in BIIP comes from international businesses. Both foreign-direct investments and export-driven domestic projects thrive in this industrial park.

BIIP offers the following merits to the investors:

• competitive land rates.

• businesses can operate freely in with full property ownership and 25 years renewable leases.

• a guaranteed ten-year corporate tax exemption and zero income tax from the day business is set up in the industrial park.

• customs duty exemption on raw materials, plant machinery and spare parts imported for manufacturing.

Bahrain International Investment Park (BIIP)⁽⁴⁾

Bahrain International airport sits in 19th place in the free zones of the future list and is ranked fifth-best airport zone in the world. Offering cargo facilities, offices and retail space, the foreign trade zone has no customs duties. It is governed by Mumtalakat, the government vehicle for Bahrain’s non-oil and gas investments, established in June 2006 by royal decree.

^{(1) As per the Middle East Business Intelligence – MEED}

^{(2) Ministry of Transport and Communications}

^{(3) Economic Development Board – Bahrain}

^{(4) Middle East Business Intelligence – MEED}