BAHRAIN Trends and Developments Contributed by: Noor Hassan Radhi, Fatima Al Ali and Saifuddin Mahmood, Hassan Radhi & Associates
Hassan Radhi & Associates P.O. Box 5366, AlBaraka Tower (A), 9th Floor, Bahrain Bay Office 91 & 92, Building 372, Road 4611 Block 346
Manama, Sea Front Kingdom of Bahrain Tel: +97317535252 Fax: +97317533358
Email: info@hassanradhi.com Web: www.hassanradhi.com
Introduction With its strategic location in the heart of the Ara - bian Gulf, Bahrain benefits from a politically stable and investment-friendly environment, enhancing its position as a corporate hub. This stability, combined with regulatory efficiency and attractive investment incentives, fosters a business-friendly ecosystem that makes Bahrain a notable destination for busi - ness expansion. As a result, the country continues to strengthen its reputation as a hub supporting M&A activities and driving overall corporate growth. Bahrain’s Economic Vision 2030 outlines a strategic roadmap for the nation’s economic development, aim - ing to diversify the economy and reduce reliance on oil revenues. The vision aspires to position Bahrain as a global competitor by strengthening key sectors such as finance, tourism, manufacturing, logistics and technology, to ensure sustainable and long-term eco - nomic growth. Regulatory framework Bahrain’s regulatory framework strategically aligns with its national economic vision, and has played a key role in enhancing foreign investment, financial services, economic diversification and digital trans - formation. Bahrain’s M&A activities are governed by a compre - hensive legal framework designed to ensure transpar - ency and protect stakeholder interests. The Bahrain Commercial Companies Law provides the foundation for company operations, including M&A. Additionally, the Central Bank of Bahrain (CBB), pursuant to the powers given to it under the Central Bank of Bah -
rain and Financial Institutions Law of 2006, oversees transactions, especially those involving financial insti - tutions, to maintain market stability and compliance with financial regulations. The Telecommunications Mergers and Acquisitions Regulation issued by the Telecommunications Regulatory Authority (TRA) regu - lates mergers and acquisitions within the telecommu - nications sector. Established under Legislative Decree No. 48 of 2002 Promulgating the Telecommunications Law, the TRA oversees and regulates all telecommu - nications activities in the Kingdom. Policies and Regulations Supporting Business in Bahrain Bahrain has enacted various pieces of legislation to support Economic Vision 2030, including the follow - ing. Encouraging and enhancing foreign investment The restrictions on foreign ownership, as set out under the Commercial Companies Law, have been progres - sively relaxed through a series of amendments to the law and Ministerial Orders issued in implementation thereof. While certain commercial activities remain restricted to companies with a minimum of 51% Bah - raini ownership, and others require involvement of a Bahraini shareholder or partner at any percentage, almost 95% of commercial activities are now open to full foreign ownership. In addition, certain nationalities enjoy favoured treat - ment in terms of foreign ownership restrictions, such as nationals of countries in the Gulf Cooperation Council, who are given Bahraini national treatment, and US citizens, who are also given favoured treat -
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