Business Profile
Economy: Oil dominates Bahrain’s economy and, together with gas and petrochemicals, accounts for the bulk of exports and government revenue. That proportion is falling, however, as Bahrain seeks to diversify its economy and the reserves dwindle. Several successful industrial projects, including aluminium production, an iron-ore processing facility and an ammonia-methanol plant have been set up. In the service sector, the financial services industry has expanded dramatically in recent years, as companies trading in the region have set up their regional centres in Bahrain, where the relatively relaxed environment is an important factor in a region where rigorous social mores are often the norm. In June 2000, Bahrain was identified by the Organisation for Economic Cooperation and Development (OECD) – the world’s 30 wealthiest economies – as one of 35 countries whose financial laws are believed to encourage large-scale tax evasion and possible money laundering. The government has since taken measures to meet the OECD’s demands, thereby avoiding the threat of future sanctions. Most of Bahrain’s trade is conducted with the major industrialised countries, particularly Japan, the USA and the larger EU states, plus Switzerland.
Business: Businessmen are expected to wear suits and ties. Business must be done on a personal introduction basis. Normal social courtesies should be observed but introductions and greetings are important and polite conversation is expected before business discussions begin. Bargaining is common practice: Arabs regard their word as their bond and expect others to do the same. The best time to visit is October to April. Office hours: Usually Sat-Wed 0800-1300 and 1500-1730. Some offices work Sat-Thurs 0800-1530. Government office hours: Sat-Wed 0700-1415. |
