Bahrain ‘most competitive’ in ICT business operations

TDT | Manama                                          

The Daily Tribune – www.newsofbahrain.com

Reported by Julia Cassano    

Bahrain is 28 percent more cost-effective in Information and Communications Technology (ICT) direct operating costs when compared to other GCC countries.

The Kingdom is also the most competitive country in terms of operating an ICT business, and has an annual cost 13 percent lower than the GCC average, according to a recent report released by KPMG.

The recent report released by KPMG titled ‘The cost of doing business in the GCC-ICT’ claims that the Kingdom has the most competitive commercial rental costs, manpower costs, and internet charges when compared to its GCC peers.

Additionally, the report highlights the Kingdom’s annual cost of living, with it remarkably being 24 percent below the regional average, as well as Bahrain positioning itself as the most favourable jurisdiction regarding the cost of education and accommodation costs in the GCC.

The report aims to examine the typical direct and indirect costs associated with operating an ICT firm in the GCC countries, and analyzes the direct costs of business registration, licensing, commercial rental rates, manpower costs, telecom costs, internet charges, electricity and water charges, and IT infrastructure.

The average annual cost of living in Bahrain rounds up to $25,800 (BD9,725), compared to the UAE (ABD), where the average annual cost of living amounts to $42,980 (BD16,200).

Regarding electricity and water, the Kingdom’s annual cost amounts to $5,400 (BD2,035), compared to the UAE's (ABD) cost of $6,280.

Bahrain has a total cost of living of $44,330 (BD16,707), the UAE (DXB) is $66,650 (BD25,117), the UAE (ABD) is $65,650 (BD24,740), Saudi Arabia is $53,630 (BD20,210), Qatar is $60,790 (BD22,908), and Oman is $49,030 (BD18,477).

In 2022, the Bahrain Economic Development Board (EDB), supported by Team Bahrain, attracted more than $1.1 billion (BD414,537,640) of direct investment, which is a record year for the Kingdom’s investment promotion agency, according to EDB Bahrain.

The investments acquired, came from over 88 companies, and contain expectations to create over 6,300 jobs in the local market over the next three years, says EDB.

The investments are spread through key sectors such as financial services, ICT, logistics, manufacturing, and tourism. Bahrain aims to accelerate its business strategies and outcomes to attract foreign direct investment of more than $2.5 billion (BD942,131,000) by 2023.

EDB Chief Executive Khalid Humaidan commented on the board’s record investments, saying: “The size of the investment attracted this year is a testament to Bahrain’s attractiveness to investors."

"The Kingdom’s offerings include best value operating costs, the availability of a talented workforce, an advanced digital infrastructure, and a forward-looking regulatory environment.”