MANAMA CITY PROFILE
Overview
First mentioned in Islamic chronicles in 1345 AD, the city of Manama is now the capital and largest city of Bahrain, at the north-eastern tip of this rapidly developing Persian Gulf island state.
Open-minded and highly tolerant of other cultures, Manama is visited by huge numbers of foreigners each year. These visitors can enjoy a vast array of attractions, from souks (markets) and shopping malls to forts and pearl museums, as well as the friendly nature of the locals.
The economy of Manama was, historically, based on pearling, fishing, boat building and trade, displays of which can now be seen in local museums. However, this all changed in 1932 with the discovery of petroleum which dramatically boosted the city's economy. Manama has also recently begun to diversify greatly as the government of Bahrain looks to move away from a dependence on oil-based income. Declared a free port in 1958, the facilities of the Mînâ Salmân port, in the al-Qulayah Inlet, have also aided economic growth and provided more access to tourists.
Economy
Manama is the focal point of the Bahraini economy. While oil may have decreased in importance in recent years due to depleting reserves, petroleum remains the most telling contributor to the economy. Meanwhile, other sectors such as heavy industry, banking and finance, and tourism are increasing in importance.
In the Middle East, Bahrain has earned the rank of being the most economically progressive country and it is known worldwide as the fourth most free economy (ranked by The Heritage Foundation). This economic growth has come about due to the simple administrative and legal systems that have aided the industrialisation of Bahrain.
There are a number of well-known multi nationals that have a base in Manama. The economic base for the city is financial services, with over two hundred financial institutions and banks based in the CBD and the Diplomatic Area. There is also a large retail sector, while the centre of Manama is dominated by small workshops and traders.
Investment climate and opportunities
There are no taxing complications when doing business in Manama because there are no personal, corporate, or withholding taxes applicable to Bahrain businesses generally. Furthermore, there is no sales tax (or VAT) for goods or services. Starting a business in Manama can be done in as little as seven days and running it is also relatively easy because of a willing, low cost and multi-lingual labour force.
Manama’s brilliant strategic location puts every business in potential contact with over 100 million people - a situation made possible through the King Fahad Causeway that links Bahrain and Saudi Arabia.
Opportunities exist in various sectors, including:
ICT: Bahrain boasts the Middle East’s most liberal and advanced information, communications and technology (ICT) infrastructure and policies and the capital of Manama lies at the heart of the huge strides the country has made in this area. With their open and forward-thinking approach, Bahrainis have proved to be an ideal testing ground for the introduction of new technologies to the region and Manama has experienced a rapid rate of innovation. The Bahrain information and communication technology (ICT) market is expected to reach $375bn by 2010, due to high demand for IT products and services from both public and private sectors.
Conferences and events: Manama’s MICE (Meetings, Incentive Travel, Conferences and Exhibitions) sector has grown rapidly in recent years and this has led to a huge growth in demand for businesses supplying consultancy services and sophisticated technology to this sector. It’s easy to understand why Manama is a perfect location for event organisers and MICE. Manama has numerous 5-star hotels with ample spaces that could be readjusted based on the size of attendees for spacious events, exhibitions and gatherings. The fact that hotels house these functions means that the catering is of high standards and so guests do not have to be far away from the convention centres to attend the events. All these hotels have business centres and are Wi-Fi equipped.
Professional services: There are a number of reasons why Manama offers a wealth of opportunities for professional services firms looking to gain a foothold in the burgeoning Middle East market. Rapid and sustained development, particularly in financial services and Saudi Arabia’s oil and gas markets, are creating abundant opportunities for professional and business services firms. This includes law, accountancy, management consultancy, marketing services, engineering services and human resources. Within the GCC, Bahrain generally - and Manama, its professional services capital - is noteworthy for its accessibility as a service centre to other Gulf markets (especially Saudi Arabia), given its advantages of political/cultural neutrality, language, physical proximity, skilled labour, low operating costs and favourable legal environment.
