Bahrain Golden License

The initiative aims to attract large-scale investment projects, says Bahrain Economic Development Board.

Bahrain has launched a Golden License, providing incentives and streamlined services to foreign and local businesses with large-scale investment projects in Bahrain, in an important step in the country’s pursuit to incentivise investments and boost job creation under its fiscal and economic reforms.

The move, as reported by Bahrain Economic Development Board (EDB) on 3 April 2023, builds upon the growing investment attractiveness of Bahrain, which has recently recorded its highest Real GDP growth rate in almost a decade.

Companies with major investment and strategic projects that will create more than 500 jobs in Bahrain, or those with investment value exceeding USD 50 million, will be eligible for the License.

With the License, companies will enjoy a wide range of privileges and benefits, including prioritised allocation of land for investments, infrastructure services and utilities. They will also have streamlined access to government services – including business licensing and building permit approval, as well as support from Bahrain’s Labour Fund, Tamkeen, and Bahrain Development Bank.

Introduced by Bahrain’s Cabinet, which was chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, the License aims to attract investments from local and international companies and create jobs locally. These are priorities of the Economic Recovery Plan, the blueprint of Bahrain’s fiscal and economic reforms introduced in 2021 that has been the driving force of the country’s recent robust economic performance.

Further advantages under the License include integrated cooperation with various government departments, a designated account manager from Bahrain’s Economic Development Board, as well as potential review of existing laws or regulations where necessary and applicable.

Review of Business Legislation

In view of the Bahrain EDB’s mandate to attract investment opportunities and enhance Bahrain’s investment climate; EDB champions regularly reviewing existing business legislation and establishing dynamic business laws, with a particular focus on addressing potential issues in ICT and priority sectors outlined in the Economic Recovery Plan, as this is considered vital to support the development of a business-friendly environment. Moreover, it helps to enhance the ecosystem to attract investment and further diversify the economy, thereby stimulate economic growth and increase high-value opportunities for employment.

To this end on 11 May, Bahrain EDB was host to the second of its Quarterly Business Law Forum for 2023. The forum, held at the Ritz-Carlton Bahrain, aimed to establish a platform to facilitate a space for stakeholders and experts to regularly discuss and debate topical issues, learn about the latest development in the realm of business law and assess the need for improving existing laws or the introduction of new laws to improve the ecosystem for doing business in the kingdom.

This was the second quarterly forum for this year, the first was held on 12 January. Among several other topics discussed, this forum focused on knowledge exchange and discussion of digital markets, digital services, and data governance. This was the subject of a presentation titled “Recent EU Digital Services Act, Digital Markets Act and Data Governance Act: Should the GCC be inspired?” delivered by Mr. Dino Wilkinson of Clyde and Co, one of the leading technology lawyers in the region. Luca Castellani, Legal Officer in the Secretariat of the United Nations Commission on International Trade Law (UNCITRAL), discussed the most contentious issues in the international sale of goods. The forum will also discuss recent developments in company law and commerce law together with other topical legal issues.

New Technology Laws

In recent years, in line with increasingly global trends, four technology laws were introduced in the Kingdom with the aim of innovating Bahrain’s legislative ecosystem towards a more sustainable future.

The first law was the Personal Data Protection Law, which was designed to be another catalyst for the development and growth of Bahrain’s digital economy by governing the processing of personal data. The second law was the Electronic Communications and Transactions Law to regulate the recognition of electronic communication, electronic contracts and electronic trust services.

The third law is related to cloud computing services designed to encourage parties located outside Bahrain to use cloud computing data centres located in the Kingdom.

The fourth law gives recognition and regulates electronic transferable records. By virtue of this law, Bahrain was the first country in the world to adopt the Model Law on Electronic Transferable Records developed by the United Nations Commission on International Trade Law (UNCITRAL). Electronic Transferable Records include electronic cheques, bills of exchange, promissory notes, bills of lading, letters of credit and warehouse receipts that are in electronic form.

Source: Bahrain EDB