Bahrain - Market ChallengesBahrain - Market Challenges
-
Although foreign companies are not required to have local partners, local businessmen with strong government contacts can sometimes influence government decision-making.
-
Interpretation and application of the law sometimes varies by ministry and may depend on the stature and connections of an investor's local partner.
-
The "Bahrainization" of the labor force – a quota system requiring employers to employ a minimum percentage of Bahrainis – can sometimes lead to delays and confusion over work permit issuance and renewal. In 2017, the Bahraini Government introduced a system that allows companies to pay a fee in lieu of meeting Bahrainization quotas.
-
Many of the largest infrastructure projects in Bahrain are funded by Bahrain’s wealthier GCC neighbors through the so-called GCC Stabilization Fund. Although those projects are tendered via the Bahrain Tender Board, final award decisions often are made by the country that funds the project, which may override the Tender Board’s recommendation.