Bahrain’s top rankings in global indices solidify its position as a leading FDI destination, attracting businesses with liberal economic policies, a progressive legislative framework, and a highly skilled workforce.
Bahrain is rapidly becoming a preferred destination for Foreign Direct Investment (FDI) due to its commitment to fostering a business-friendly environment. The island nation boasts top rankings across various global indices that measure economic freedom, talent pool quality, and overall investment attractiveness.
Thriving business ecosystem attracts leading companies
Bahrain’s liberal economic policies and progressive legislative frameworks create an ideal environment for business growth and prosperity. This is further supported by a highly skilled local talent pool, making Bahrain an attractive option for companies looking to expand their operations or establish a regional presence.
In recognition of this, Manama, Bahrain’s capital, secured the top spot globally for Financial Attractiveness in the Global 150 Cities Index 2023 by AIRINC. Furthermore, Bahrain secured a record USD 1.7 billion in investments during FY 2023, solidifying its position among the top 20 best FDI performers globally according to the Greenfield FDI Performance Index 2023 by FDI Intelligence.
Top rankings highlight Bahrain’s strengths
“Bahrain’s top scores across global indices are a testament to the country’s commitment to financial and investment freedom, a business-friendly approach, and a highly skilled workforce,” said Nada Al Saeed, Chief of Strategy at Bahrain EDB. “These factors all contribute to supporting the growth and success of local and international companies.”
Bahrain’s strengths are further highlighted by its performance in various rankings throughout 2023. These include:
- 1st globally in Islamic Finance Regulations (ICD-LSEG Islamic Finance Development Report 2023)
- 10th globally in Policies of Doing Business (Global Innovation Index 2023, WIPO)
- 1st in the Arab world in Economic Freedom (Economic Freedom of the World 2023, Fraser Institute)
- 1st in the Middle East and North Africa (Mena) in Financial, Investment, and Trade Freedom (Index of Economic Freedom 2023 The Heritage Foundation)
- 2nd in the Arab world (10th globally) on the Timeliness subindex (Logistics Performance Index 2023, The World Bank)
Strategic location and skilled workforce
Bahrain’s strategic location offers access to the Gulf market and beyond, making it an efficient export hub. This is further enhanced by a highly skilled and diverse workforce. In the World Talent Ranking 2023 by IMD, Bahrain ranked 4th globally in skilled labor, 1st in the Arab world for the percentage of females in the workforce, and 1st in Mena for finance skills, employee training, and language skills.
Investing in Bahrain’s future
Bahrain’s commitment to continuous improvement is evident in its ongoing efforts to streamline regulations and enhance business policies. This dedication to creating a seamless experience for investors positions Bahrain as a prime location for companies looking to establish or expand their operations in the Middle East.
For more news on business and trade in the Middle East, visit our dedicated archives.