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What do we think?

Offering the most business friendly environment within GCC, Bahrain provides an unbeatable value to investors to flourish and grow their businesses. Bahrain has taken substantial measures to enact reforms and create the most open and favorable business conditions to make this possible. Fortunately, due to its strategic location, Bahrain has the advantage of being an ideal gateway to the trillion dollar Gulf market. 

Our View on Bahrain

Access to Gulf Markets

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With access to an economic worth of USD 2 trillion, Bahrain is positioned at the heart of GCC allowing an easy reach to other markets, offering strong imperative for investors to base their  headquarters. 

Business Friendly Legal Framework

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Bahrain is committed to maintaining GCC’s most liberal business environment, with no corporate, personal income or wealth tax on capital gains and free repatriation of capital, profits or dividends.

Significantly Lower Cost of Doing Business

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Cost of doing business in Bahrain is relatively low (40% lower than Dubai). Other basic costs such as rents are lowest in the region. Further, a combination of subsidies reduce the overall operational costs.

Educated Local Workforce

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Bahrain’s workforce is bi-lingual, highly skilled, and cost competitive to other GCC countries. This implies that investors can minimize spending on expatriate packages and build a long-term, sustainable workforce.

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Problems SMEs Face

At STOIK, we strongly believe that most of the SME owners have a good understanding of their businesses operations. Additionally, these owners normally work on interesting business ideas that have a strong potential for being successful. In our understanding, if low-cost financing support and other financial incentives are given to these owners, their business will be even more successful. However, SMEs face a challenge in terms of financing their ideas into profitable business operations.

Bank Financing Challenge

How SME growth is restrained?

In our dealings with Banks in Bahrain, we have found the following to be the key reasons for loan application rejections by the Banks:

1. Lack of profitability in the business

2. Incomplete loan application

3. Missing documentation

4. Inability of the SMEs to convince the banks

Since we have dealt with Banks in Bahrain for many years, we understand what exactly banks look for in a loan application. In our experience banks look for SMEs ability to pay back the bank loan based on operational profits. 

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Support System for SMEs in Bahrain

The Government of Bahrain, realizes that the SMEs are not able to achieve their full business potent

A. Eased Business Regulatory Framework: Bahrain offers an attractive regulatory environment, allowing 100% foreign ownership for most activities, positioning entire country as a free zone. Additionally, reduced minimum capital requirements have resulted in lower investment costs and made it easier to set-up businesses in Bahrain.

B. Tamkeen Islamic Finance Scheme: Tamkeen provides subsidized and low-interest (profit rate) business loans to fund the business requirements. This is a very attractive growth opportunity, which SMEs should benefit from.

C. Tamkeen Enterprise Support Programme: Through this programme, Tamkeen offers 50% Percent subsidy for your business needs across different areas. As a result, SMEs can consider investment options at a much reduced cost, increasing their overall return on investment.

D. Tamkeen Wage Support Programme: Through this programme, Tamkeen will provide financial support to the businesses when they hire Bahraini employees. This will help in terms of lowering staffing and training costs for the businesses, which helps businesses to achieve significant growth.

Together, by combining the benefits of both these schemes, STOIK can help the SMEs in Bahrain to effectively unlock the true potential of their enterprise and contribute effectively towards the long-term growth of the enterprise as well as that of the Bahrain’s economy

Learn More

You can visit the Tamkeen website for detailed information: