9 Key Insights About Bahrain's Economic and Social Landscape
Bahrain is a small island nation in the Middle East known for its strategic location and economic stability. Here are nine key insights about Bahrain's economic and social landscape.
1. Corporate Income Tax (CIT) is Coming to Bahrain
Bahrain is set to implement corporate income tax, with draft legislation expected to be issued this year. This move aligns with global trends and aims to enhance revenue collection for the government.
2. Oil Trading Expansion
Kuwait and Bahrain are establishing oil trading arms to capitalize on recent refinery expansions. These new entities aim to increase sales of diesel and jet fuel, mirroring the strategies of larger Gulf neighbors.
3. Bahrain Bourse Performance
The Bahrain Bourse index closed at 2,039.95 points on Sunday, down 1.76 points from its trading close. The decline was attributed to a drop in the luxury consumer goods and financial sectors.
4. Investment Climate
Bahrain's Constitution stipulates that international conventions and treaties have the power of law. This favorable legal environment makes it an attractive destination for investors seeking stability and protection.
5. Domestic Violence Initiatives
Bahrain has made significant strides in addressing domestic violence. The government has established a unified database on cases of domestic violence and implemented training programs for judges and policewomen.
6. Women's Economic Participation
The Bahraini Womens Development Centre (Riyadat) was established to promote womens economic participation. It provides administrative, training, advisory, and promotional services to support Bahraini women in setting up private enterprises.
7. Tax Compliance Obligations
Taxable Free Zone Persons (FZPs) must register for corporate tax in the UAE if not exempted. They must file tax returns and pay any due tax within nine months after the end of the relevant tax period.
8. Oil Refinery Expansions
Bapco Energies, Bahrain's state oil refiner and marketer, aims to begin trading operations in Dubai by early next year. This move is part of a broader strategy to increase sales of diesel and jet fuel.
9. Sustainable Development Goals
Bahrain is committed to the 17 Sustainable Development Goals. The government has supported the establishment of centers for women survivors of domestic violence and implemented training and awareness programs on domestic violence.