2.500
%
Positive
26
mm boe
14
%
Bahrain provides a free, open and transparent environment for businesses. Access to the oil & gas sector is, however, difficult, and can eliminate juniors. Nevertheless, we are updating outlook to Positive given the measures that the government has taken to liberalise its hydrocarbon sector.
January 25, 2024
Middle East
mm bbl
bcf
Middle East, archipelago in the Persian Gulf, east of Saudi Arabia.
Concession
There are no corporate taxes in Bahrain except for the levy of income tax on the profits of companies engaged in the exploration, production or refining of crude oil and other natural hydrocarbons in Bahrain, which is levied at a rate of 46%. Taxable income for oil companies is net profits, consisting of business income less business expenses.
State-owned enterprises (SOE) are the primary engines for growth, but Bahrain aims to expand the private sector’s contribution to the economy to diversify away from hydrocarbon dependency and promote long-term economic growth. The Government of Bahrain’s (GOB) focuses its on attracting foreign direct investment (FDI) in the manufacturing, logistics, infrastructure, information and communications technology (ICT), financial services, tourism, health, and education sectors. Bahrain is becoming more open, performing well in the Heritage Index's metrics. Despite the challenging environment, Bahrain continues to be a financial hub for dynamic economic activity. Its openness to global commerce is sustained by a competitive and efficient regulatory environment.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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