Bahrain woos Indian investors to set shop

Competition in the Middle East is hotting up. Bahrain too has entered the fray in a bid to invite Indian investors set up business here. At a conference in Mumbai – organised by both KPMG and the Confederation of Indian Industry (CII), D. Hassan A Fakhro, minister of industry and commerce, Bahrain, pointed out how Bahrain was the best place for doing business in the Middle East.

It may be recalled that the first major bid for soliciting investors from India was a couple of decades ago when the authorities in Dubai set up the Jebel Ali Free Trade Zone (FTZ). About five years ago, Abu Dhabi entered the fray with the Khalifa Industrial Zone, Abu Dhabi or KIZAD. At the same time, Saudi Arabia also began work on setting up at least two large FTZs in its territory.

"We like doing things our own way, quietly and more effectively," says Fakhro with a smile when DNA asked him about other business centres.

The Bahrain pitch is zero income tax, cheaper power and water costs, lower rentals than in most places in the Gulf region, the ability to bring in migrant labour without any restrictions, the absence of separate laws for citizens and expatriates and a good social infrastructure which includes quality education and healthcare.

A KPMG study shows, the costs for doing business in Bahrain could be almost half that of doing business in Dubai.

It remains to be seen if investors begin to flock to Bahrain over other centres in the region.