Mubasher: Bahrain is considered the most cost-effective country across the GCC to establish and operate business in the financial services sector, accounting firm KPMG said in a recent report.

Companies with business in Bahrain can enjoy up to 35% cost savings when compared with the rest of the region, the report entitled ‘Cost of doing business in Bahrain – Financial Services’ noted.

The kingdom leads on a wide range of metrics in KPMG’s report, including commercial rents up to four times lower, in addition to staff costs that can be up to 60% below other Gulf countries.

Bahrain was the first country across the Gulf area to set up a banking system and is currently considered a home to more than 400 financial institutions, all underpinned by a highly skilled and educated workforce.

“The benefits of doing business in Bahrain are not just restricted to certain geographical areas or free zones. Instead, the whole country is subject to the same business-friendly rules, allowing companies to set up wherever they wish,” the report noted.

It is noteworthy that utility costs in Bahrain are up to 70% less than some other countries in the GCC, while launching a company in Bahrain was also found to be quicker and more cost-effective.

KPMG added, “with the application fees to gain approval as a financial business being lower in Bahrain than in neighbouring countries, while a ‘dealing in investments as principal’ application costs just $270 in Bahrain, further highlighting the appeal of starting a company in the country.”

Senior financial services manager at Bahrain Economic Development Board, Dalal Buhejji, commented, “The KPMG report highlights the progress Bahrain has made over the past 40 years as a regional hub for the Financial Services sector, attracting both foreign and local investment. Financial Services is undergoing a period of systemic change globally as FinTech continues to exponentially disrupt traditional banking services. And Bahrain is at the forefront of cutting-edge financial technology products and services, making it an important hub for the financial services industry.”