BAHRAIN Trends and Developments Contributed by: Noor Hassan Radhi, Fatima Al Ali and Saifuddin Mahmood, Hassan Radhi & Associates
Introduction With its strategic location in the heart of the Arabian 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 business 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, aiming to diversify the economy and reduce reliance on oil revenues. The vision aspires to position Bahrain as a global com - petitor by strengthening key sectors such as finance, tourism, manufacturing, logistics and technology, to ensure sustainable and long-term economic growth. Regulatory framework Bahrain’s regulatory framework strategically aligns with its national economic vision, and has played a key role in enhancing foreign invest - ment, financial services, economic diversifica - tion and digital transformation. Bahrain’s M&A activities are governed by a com - prehensive legal framework designed to ensure transparency and protect stakeholder interests. The Bahrain Commercial Companies Law pro - vides 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 Bahrain and Financial Institutions Law of 2006, oversees transactions, especially those involving financial institutions, to maintain market stability and compliance with financial regulations. The Telecommunications
Mergers and Acquisitions Regulation issued by the Telecommunications Regulatory Authority (TRA) regulates mergers and acquisitions with - in the telecommunications sector. Established under Legislative Decree No. 48 of 2002 Prom - ulgating the Telecommunications Law, the TRA oversees and regulates all telecommunications activities in the Kingdom. Policies and Regulations Supporting Business in Bahrain Bahrain has enacted various pieces of legisla - tion to support the Economic Vision, including the following. Encouraging and enhancing foreign investment The restrictions on foreign ownership, as set out under the Commercial Companies Law, have been progressively relaxed through a series of amendments to the law and Ministerial Orders issued in implementation thereof. While certain commercial activities remain restricted to com - panies with a minimum of 51% Bahraini owner - ship, and others require involvement of a Bah - raini shareholder or partner at any percentage, almost 95% of the commercial activities are now open to full foreign ownership. In addition, certain nationalities enjoy favoured treatment in terms of foreign ownership restric - tions, such as nationals of countries in the Gulf Cooperation Council, who are given Bahraini national treatment, and US citizens, who are also given favoured treatment pursuant to the Free Trade Agreement between Bahrain and the USA. With respect to the activities that are subject to a minimum Bahraini ownership, the law empowers the Minister in charge of commercial affairs, sub - ject to the approval of the Council of Ministers, to further relax such restriction in specific cases,
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