{"id":3329,"date":"2019-02-12T12:47:58","date_gmt":"2019-02-12T12:47:58","guid":{"rendered":"https:\/\/www.weetas.com\/insights\/?p=3329"},"modified":"2019-02-14T13:23:46","modified_gmt":"2019-02-14T13:23:46","slug":"investment-in-bahrain-2019","status":"publish","type":"post","link":"https:\/\/www.weetas.com\/insights\/en\/investment-in-bahrain-2019.html","title":{"rendered":"Investment in Bahrain in 2019: how its factors changed from last year?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">We can all agree on the vital role which the Bahrain plays as a major trade hub in the GCC; the kingdom does not only enjoy a strategic location in the Arabian Gulf, it is also a densely-populated cosmopolitan nation. For these reasons and more, there has been a growing interest in the opportunities of investment in Bahrain in the recent years.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Last year, we wrote an insight regarding the <\/span><a href=\"https:\/\/www.weetas.com\/insights\/en\/obstacles-of-investment-in-bahrain.html\"><b>status of the environment of investment in Bahrain in 2018<\/b><\/a><span style=\"font-weight: 400;\">. We focused on the opportunities as well as the obstacles that challenge Bahrain\u2019s potential for attracting investors and businesses, according to the <\/span><i><span style=\"font-weight: 400;\">World Bank<\/span><\/i><span style=\"font-weight: 400;\"> report on the easiness of doing business in Bahrain in 2018.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Now, we take a look at the progress that took place in a year in the environment of investment in Bahrain; we will discuss the changes in Bahrain\u2019s rankings in the indicators that determine the easiness of doing business in it.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>General Outlook:<\/b><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3366\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/1-General-Outlook-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/1-General-Outlook-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/1-General-Outlook-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Overall, the Kingdom of Bahrain was ranked the <\/span><b>62nd <\/b><span style=\"font-weight: 400;\">easiest country to start business in in 2019. This reflects a positive progress from last year, where Bahrain scored the <\/span><b>66th <\/b><span style=\"font-weight: 400;\">rank in the same index. That being said, let\u2019s take a closer look on each indicator that calculated the aforementioned rank.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Note: the following need to be considered while examining all the listed indicators:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The report views the sub-measures of the indicators in comparison with Bahrain\u2019s region, <\/span><b>Middle East and North Africa (MENA)<\/b><span style=\"font-weight: 400;\">, and the member countries of the <\/span><b>Organization for Economic Cooperation and Development.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">We will compare the result of each indicator on relative basis (how Bahrain\u2019s rank for the indicator rank among the 190 studied countries changed last year) and absolute basis (how Bahrain\u2019s score in each indicator changed last year).<\/span><\/li>\n<\/ul>\n<h3><b><b>Easiness of Starting Business:<\/b><\/b><\/h3>\n<p><b><b><br \/>\n<\/b><\/b><span style=\"font-weight: 400;\">This is for measuring the extent to which starting business in the concerned country is facilitated.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Procedures\u2019 number, duration and cost:<\/strong><strong><br \/>\n<\/strong><span style=\"font-weight: 400;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3372\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/3-a-Procedures\u2019-number-duration-and-cost-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/3-a-Procedures\u2019-number-duration-and-cost-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/3-a-Procedures\u2019-number-duration-and-cost-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">The research that was performed on Manama, the capital city of Bahrain, concluded that <\/span>6 <span style=\"font-weight: 400;\">procedures are required to start a business; while this is <\/span>more than <span style=\"font-weight: 400;\">the average of <\/span><strong>OECD<\/strong><span style=\"font-weight: 400;\"> (<\/span><strong>4.9 procedures<\/strong>)<span style=\"font-weight: 400;\">, it is <\/span>less than<span style=\"font-weight: 400;\"> the average of <\/span><strong>MENA (7.2)<\/strong>. <span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The procedures take around <\/span><strong>8<\/strong><span style=\"font-weight: 400;\"><strong> days<\/strong> and cost <\/span><strong>1.1%<\/strong> <span style=\"font-weight: 400;\">of income per capita to be completed. These numbers are <\/span>lower than<span style=\"font-weight: 400;\"> the average time and cost for both <\/span><strong>MENA (20.5 days, 22.6%)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (9.3 days, 3.1%)<\/strong>.Note: <span style=\"font-weight: 400;\">it is vital to mention that in case the applicant was a female, the numbers change slightly. In particular, there would be <strong>one more procedure<\/strong> that needs to be completed (i.e. <\/span>obtaining husband\u2019s permission to leave home<span style=\"font-weight: 400;\">). Naturally , one additional calendar day would be needed to complete that procedure <strong>(<\/strong><\/span><strong>9 calendar days)<\/strong>.<\/p>\n<p><strong>b) Minimum capital needed:<\/strong><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3386\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/4-b-Minimum-capital-needed-EN-2.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/4-b-Minimum-capital-needed-EN-2.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/4-b-Minimum-capital-needed-EN-2-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As for the minimum capital required to start a company in Bahrain, it has been computed to be <\/span><strong>250BHD<\/strong>.<\/p>\n<p><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>75<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>66<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in rank<\/strong><span style=\"font-weight: 400;\"><strong>:<\/strong> the Kingdom of Bahrain has jumped <\/span><strong>9<\/strong><span style=\"font-weight: 400;\"><strong> ranks up<\/strong> in the Easiness of Starting Business index. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score: <\/strong><span style=\"font-weight: 400;\">Bahrain scored <\/span><strong>89.57<\/strong> <span style=\"font-weight: 400;\">in the Starting Business indicator, <\/span><strong>1.7 points<\/strong> higher<span style=\"font-weight: 400;\"> than the score of 2018 <strong>(<\/strong><\/span><strong>87.87)<\/strong>.<br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">Bahrain has now <\/span><strong>1<\/strong> less procedure <span style=\"font-weight: 400;\">than 2018 for starting business in it; naturally, this led to reducing the time needed to complete the procedures by <\/span><strong>1<\/strong> calendar day<span style=\"font-weight: 400;\"> as well. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">However, the cost percentage has witnessed a small <\/span><strong>0.1<\/strong> <span style=\"font-weight: 400;\">rise from <\/span><strong>1% to 1.1%<\/strong><\/p>\n<h3><strong>Dealing with construction permits:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This indicator measures the easiness of requesting and getting a construction permit in any given country.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3377\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/5-Dealing-with-construction-permits-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/5-Dealing-with-construction-permits-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/5-Dealing-with-construction-permits-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Procedures\u2019 number, duration and cost:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">As per the report, <\/span><strong>11 <\/strong><span style=\"font-weight: 400;\"><strong>procedures<\/strong> need to be completed to get a construction permit. This is <\/span>less than<span style=\"font-weight: 400;\"> the average number of same procedures needed in both <\/span><strong>MENA (16.6) <\/strong>and <strong>OECD (12.7)<\/strong>.<span style=\"font-weight: 400;\">However, these <\/span>11 <span style=\"font-weight: 400;\">procedures take <\/span><strong>174 days<\/strong> <span style=\"font-weight: 400;\">and cost <\/span><strong>3.9%<\/strong><span style=\"font-weight: 400;\"> of the property value. The duration is <\/span>longer than<span style=\"font-weight: 400;\"> the average procedure completion duration of <\/span><strong>MENA (137 days)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (153 days)<\/strong>. <span style=\"font-weight: 400;\">On the other hand, the cost percentage is <\/span>lower than <strong>MENA (4.7%)<\/strong> <span style=\"font-weight: 400;\">and higher than <\/span><strong>OECD (1.5%)<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>b) Building Quality Control Index:<\/strong><span style=\"font-weight: 400;\">As for Building Quality Control Index, Bahrain scored <\/span><strong>12.0 out of 15<\/strong><span style=\"font-weight: 400;\">, which is very <\/span>slightly lower than <strong>MENA\u2019s average (12.1)<\/strong> <span style=\"font-weight: 400;\">and <\/span>higher than <strong>OECD (11.5)<\/strong>.<\/p>\n<p><strong>Differences from last year:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>47<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>57<\/strong>.<\/p>\n<p><strong>Change in rank<\/strong><span style=\"font-weight: 400;\"><strong>:<\/strong> the Kingdom of Bahrain <\/span>dropped by <strong>10<\/strong> ranks <span style=\"font-weight: 400;\">when it comes to the easiness of dealing with construction permits.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score:<\/strong> <span style=\"font-weight: 400;\">Bahrain\u2019s score for construction permits <\/span>dropped merely by <strong>0.33<\/strong> points <span style=\"font-weight: 400;\">from <\/span><strong>73.73<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>73.40<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">with the exception of a small increase in the cost percentage from <\/span><strong>3.7%<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>3.9%<\/strong> <span style=\"font-weight: 400;\">in 2019, nothing else has changed; even the building quality control index score remained at <\/span><strong>12 points<\/strong><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The drop that took place in the ranks is probably attributed to the relative comparison; other countries have improved its performance and therefore jumped over the rank of Bahrain in 2018.<\/span><\/p>\n<h3><strong>Getting Electricity:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The degree to which it is easy for any entity to gain access to, use and maintain the country\u2019s power supply.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3379\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Getting-Electricity-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Getting-Electricity-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Getting-Electricity-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Procedures\u2019 number, duration and cost:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The number of procedures needed to gain electricity connection was found to be <\/span><strong>5<\/strong>; <span style=\"font-weight: 400;\">this is <\/span>higher than<span style=\"font-weight: 400;\"> the average for both the <\/span><strong>MENA and OECD <\/strong><span style=\"font-weight: 400;\"><strong>countries<\/strong> (<\/span><strong>4.7 and 4.5,\u00a0<\/strong><span style=\"font-weight: 400;\"><strong>respectively<\/strong>).<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">In more details, the procedures take around <\/span><strong>85<\/strong><span style=\"font-weight: 400;\"><strong> days<\/strong> and cost <\/span><strong>61%<\/strong> <span style=\"font-weight: 400;\">of income per capita. The duration needed is <\/span>higher than<span style=\"font-weight: 400;\"> that of both <\/span><strong>MENA and OECD (72.4 and 77.2 days <\/strong><span style=\"font-weight: 400;\"><strong>respectively). \u00a0<\/strong>However, the cost of completing the procedures in Bahrain is <\/span>lower than <span style=\"font-weight: 400;\">that in <\/span><strong>MENA (480%) <\/strong>and <strong>OECD (64.2%)<\/strong><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>b) Reliability of supply and transparency of tarrif:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The Kingdom of Bahrain scored <\/span><strong>5 out of 8<\/strong> <span style=\"font-weight: 400;\">in the index of <\/span>reliability of supply and transparency of tarrif, <span style=\"font-weight: 400;\">a higher score than that of <\/span><strong>MENA<\/strong> <span style=\"font-weight: 400;\">and lower than that of <\/span><strong>OECD<\/strong> <strong>(4.2 and 7.5 respectively).<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Difference from last year:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>79<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>82<\/strong>.<span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in rank<\/strong><span style=\"font-weight: 400;\"><strong>:<\/strong> the easiness of getting electricity in Bahrain went <\/span>slightly downwards by <strong>3 ranks<\/strong><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score:<\/strong> <span style=\"font-weight: 400;\">The score of getting electricity in Bahrain almost <\/span>stayed the same<span style=\"font-weight: 400;\"> as it dropped only by <\/span><strong>0.01<\/strong><span style=\"font-weight: 400;\"><strong> points<\/strong> from <\/span><strong>74.83<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>74.82<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">Bahrain\u2019s procedures and time to get electricity remained unchanged between 2018 and 2019. However, the cost percentage has surged up by <\/span><strong>4%<\/strong> <span style=\"font-weight: 400;\">from <\/span><strong>57%<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>61%<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><\/p>\n<h3><strong>Registering Property:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The extent to which it is easy for a business to register its property in the studied country.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-large wp-image-3392\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Registering-Property-EN.png\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Registering-Property-EN.png 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/6-Registering-Property-EN-300x207.png 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Procedures\u2019 number, duration and cost:<br \/>\n<\/strong><span style=\"font-weight: 400;\">The number of procedures needed to register a property in Bahrain was found to be <\/span><strong>2<\/strong>. <span style=\"font-weight: 400;\">This beats the number of both <\/span><strong>MENA (5.6) <\/strong>and <strong>OECD (4.7)<\/strong>. <span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">That was not the case, however, for the time of finishing the procedures, which was estimated to be <\/span><strong>31 days<\/strong><span style=\"font-weight: 400;\">; meanwhile, time for completing <\/span><strong>MENA\u2019s<\/strong> <span style=\"font-weight: 400;\">property registration procedures is <\/span><strong>29.7 days<\/strong> <span style=\"font-weight: 400;\">while <\/span><strong>OECD<\/strong><span style=\"font-weight: 400;\"><strong>\u2019s<\/strong> duration was found to be <\/span><strong>20.1 days.\u00a0<\/strong><span style=\"font-weight: 400;\">As for the cost, which is calculated as a percentage of the property value, it was found out to be <\/span><strong>1.7%<\/strong> <span style=\"font-weight: 400;\">in Bahrain; once again, this is smaller than the cost in <\/span><strong>MENA (5.7%)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD<\/strong> <span style=\"font-weight: 400;\">(<\/span><strong>4.2%)<\/strong>.<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong><br \/>\n<\/strong><strong>b) Quality of land administration index:<br \/>\n<\/strong><span style=\"font-weight: 400;\">Out of <strong>30<\/strong>, the Kingdom of Bahrain scored <\/span><strong>17.5<\/strong> <span style=\"font-weight: 400;\">on the Quality of land administration index; a score that is higher than that of <\/span><strong>MENA (14.2<\/strong><span style=\"font-weight: 400;\"><strong>)<\/strong> and lower than that of <\/span><strong>OECD (23.0<\/strong><span style=\"font-weight: 400;\"><strong>)<\/strong>.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Differences from last year:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>25<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>26<\/strong>.<\/p>\n<p><strong>Change in rank:<\/strong><span style=\"font-weight: 400;\"> this is the slightest shift that took place in the indicators measuring the quality of investment in Bahrain; it has decreased by <strong>only <\/strong><\/span><strong>1 rank<\/strong><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score:<\/strong> <span style=\"font-weight: 400;\">Bahrain\u2019s score in registering property indicator <\/span><strong>remained the same <\/strong><span style=\"font-weight: 400;\"><strong>at<\/strong> <\/span><strong>81.07<\/strong>.<span style=\"font-weight: 400;\"><br \/>\n<\/span><br \/>\n<strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">as Bahrain\u2019s unchanged score and almost-unchanged rank might indicate, no changes have taken place. The procedures, the required time for their completion and their cost in addition to the quality of the land administration index are exactly like 2018.<\/span><\/p>\n<h3><strong>Getting Credit:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This calculates the degree of easiness of getting credit the studied country.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3388\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/7-Getting-Credit-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/7-Getting-Credit-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/7-Getting-Credit-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong><strong>Sub-indicators:<\/strong><\/strong><\/p>\n<p><strong>a) Strength of legal rights\u2019 index:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This sub-indicator is meant to measure the degree to which the rights of borrowers, lenders and secured creditors are protected. Unfortunately, Bahrain scored <\/span><strong>1 out of 12<\/strong> <span style=\"font-weight: 400;\">in that sub-indicator, lower than both the scores of <\/span><strong>MENA (2.2) <\/strong>and <strong>OECD (6.1)<\/strong><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>b) Depth of Credit Information Index:<br \/>\n<\/strong><span style=\"font-weight: 400;\">This is meant to measure the scope and accessibility of credit information provided credit bureaus and registries. Unlike the first sub-indicator, Bahrain has successfully scored a perfect <\/span><strong>8 out of 8<\/strong><span style=\"font-weight: 400;\">, higher than both <\/span><strong>MENA (5.1) <\/strong>and <strong>OECD (6.7)<\/strong>.<\/p>\n<p><strong>c) Credit registry coverage:<br \/>\n<\/strong><span style=\"font-weight: 400;\">The percentage of Bahrain\u2019s adult citizens and firms which the kingdom\u2019s credit registry covers. Strangely enough, the research revealed that the credit registry covers <\/span><strong>0.0%<\/strong> <span style=\"font-weight: 400;\">of the targeted segments. Needless to say, this is lower than both <\/span><strong>MENA (14.7%)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (21.8%)<\/strong>.<span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>d) Credit bureau coverage:<\/strong><br \/>\n<span style=\"font-weight: 400;\">The percentage that Bahrain\u2019s credit bureau covers of the adult Bahrainis and Bahrain\u2019s firms; this was revealed to be <\/span><strong>28%<\/strong><span style=\"font-weight: 400;\">, higher than the coverage of <\/span><strong>MENA (15.5%)<\/strong> <span style=\"font-weight: 400;\">and much lower than the average of <\/span><strong>OECD (65.3%)<\/strong>.<br \/>\n<strong><br \/>\n<\/strong><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>105<\/strong><br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>112<\/strong><\/p>\n<p><strong>Change in rank:<\/strong> <span style=\"font-weight: 400;\">Even though its score remained the same, Bahrain\u2019s rank in the easiness of getting credit indicator <\/span>dropped by <strong>7<\/strong> <strong>ranks<\/strong><span style=\"font-weight: 400;\"> in 2019 from 2018.<\/span><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score:<\/strong> <span style=\"font-weight: 400;\">Bahrain\u2019s score in easiness of getting credit remains <\/span><strong>unchanged<\/strong> <span style=\"font-weight: 400;\">between 2018 and 2019 at <\/span><strong>45 points<\/strong>.<strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">as the indicator\u2019s score shows, almost none of Bahrain\u2019s scores in the sub-indices have changed; the only exception of this is Bahrain\u2019s <\/span>credit bureau coverage<span style=\"font-weight: 400;\"> which grew by <\/span><strong>0.2%<\/strong> <span style=\"font-weight: 400;\">from <\/span><strong>27.8%<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>28%<\/strong> <span style=\"font-weight: 400;\">in 2019<\/span>.<\/p>\n<h3><strong>Protecting Minority Investors:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The effectiveness, fairness and quickness of a country\u2019s judicial procedures to protect minority shareholders against the misuse of corporate assets by its board of directors. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3381\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/8-Protecting-Minority-Investors-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/8-Protecting-Minority-Investors-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/8-Protecting-Minority-Investors-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Extent of disclosure index:<\/strong><br \/>\n<span style=\"font-weight: 400;\">The extent of Bahrain\u2019s requirements for disclosing related-party transactions scored a high <\/span><strong>8 out of 10<\/strong><span style=\"font-weight: 400;\">; this is higher than the scores of both <\/span><strong>MENA (6.4) <\/strong>and <strong>OECD (6.5)<\/strong>.<span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>b) Extent of director liability index:<\/strong><br \/>\n<span style=\"font-weight: 400;\">This measures how much the minority investors can sue and hold any member of the board of directors accountable for prejudicial transactions. Bahrain scored <\/span><strong>4 out of 10<\/strong>, lower than both <strong>MENA (4.7) <\/strong>and <strong>OECD (5.3)<\/strong>.<br \/>\n<strong><br \/>\n<\/strong><strong>c) Extent of shareholders suits index:<\/strong><br \/>\n<span style=\"font-weight: 400;\">This is for determining the level of accessibility to internal corporate documents for shareholders. Bahrain earned a moderate <\/span><strong>5 out of 10<\/strong>; <span style=\"font-weight: 400;\">a score higher than that of <\/span><strong>MENA (4.5)<\/strong> <span style=\"font-weight: 400;\">and lower than that of <\/span><strong>OECD (7.3)<\/strong>.<\/p>\n<p><strong>d) Extent of shareholders\u2019 rights index:<\/strong><br \/>\n<span style=\"font-weight: 400;\">The measure of the rights and roles of shareholders in corporate decisions, in which Bahrain scored a high <\/span><strong>9 out of 10<\/strong>.<span style=\"font-weight: 400;\"> This score indicates extent of shareholders\u2019 rights in Bahrain higher than both <\/span><strong>MENA <\/strong>and <strong>OECD (5.1 and 6.4 respectively)<\/strong>.<\/p>\n<p><strong>e) Extent of ownership and control index:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The strength of laws and regulations issued by the government to protect the shareholders from malicious board actions and decision. Bahrain scored a <\/span>high <strong>7 out of 10<\/strong><span style=\"font-weight: 400;\">, indicating a stronger performance in that index in both <\/span><strong>MENA (4.7)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (5.4)<\/strong>.<\/p>\n<p><strong>f) Extent of corporate transparency index:<br \/>\n<\/strong><span style=\"font-weight: 400;\">The degree of corporate policies\u2019 transparency regarding shareholders\u2019 rights, compensation, and audits. Bahrain earned a score of <\/span><strong>7 out of 10<\/strong><span style=\"font-weight: 400;\">, greater than <\/span><strong>MENA\u2019s (5.8)<\/strong> <span style=\"font-weight: 400;\">and lower than that of <\/span><strong>OECD (7.6)<\/strong>.<\/p>\n<p><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>108<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>38<\/strong>.<br \/>\n<strong><br \/>\nChange in rank:<\/strong> <span style=\"font-weight: 400;\">this indicator has witnessed the <\/span>greatest jump in the ranks of the factors of\u00a0<span style=\"font-weight: 400;\">investment in Bahrain between both years; it increased by <\/span><strong>70<\/strong> <span style=\"font-weight: 400;\">ranks from <\/span><strong>108<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>38<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score:<\/strong> <span style=\"font-weight: 400;\">as expected, Bahrain\u2019s higher rank is attributed to the <\/span>significant improvemen<span style=\"font-weight: 400;\">t its score in protecting minority investors has witnessed from <\/span><strong>50<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>66.67<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">both of the <\/span><strong>extent of disclosure index<\/strong> <span style=\"font-weight: 400;\">and the <\/span><strong>extent of director liability index<\/strong> <span style=\"font-weight: 400;\">remained <\/span>stable. <span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">However, it was the accumulated upsurges of <\/span><strong>extent of shareholders\u2019 suit index<\/strong> <span style=\"font-weight: 400;\">from <\/span><strong>4<\/strong> <span style=\"font-weight: 400;\">to <\/span><strong>5<\/strong><span style=\"font-weight: 400;\">, <\/span><strong>extent of shareholders\u2019 right index<\/strong> <span style=\"font-weight: 400;\">from <\/span><strong>5<\/strong> <span style=\"font-weight: 400;\">to <\/span><strong>9<\/strong>, <strong>extent of ownership<\/strong> and control <span style=\"font-weight: 400;\">from <\/span><strong>4<\/strong> <span style=\"font-weight: 400;\">to <\/span><strong>7<\/strong>, <span style=\"font-weight: 400;\">and <\/span><strong>extent of corporate transparency index<\/strong> <span style=\"font-weight: 400;\">from <\/span><strong>5<\/strong> <span style=\"font-weight: 400;\">to <\/span><strong>10<\/strong> <span style=\"font-weight: 400;\">that <\/span>\u00a0<span style=\"font-weight: 400;\">caused the unprecedented jump in Bahrain\u2019s rank from <\/span><strong>107 <\/strong>to <strong>37<\/strong>.<\/p>\n<h3><strong>Paying Taxes:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This indicator is for measuring the levied taxes and all the similar monetary contributions a business is obliged to make to the government of the studied country and how easy or hard it is for businesses to comply to these taxes. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><strong><br \/>\n<\/strong><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3383\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/9-Paying-Taxes-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/9-Paying-Taxes-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/9-Paying-Taxes-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Sub-indicators:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>a) Tax payments made:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\nThe total number of tax types paid and the frequency and method of payments. Bahrain\u2019s number of required tax payments was calculated to be <\/span><strong>14<\/strong><span style=\"font-weight: 400;\">. This is considered a moderate number that lies between the averages of <\/span><strong>MENA (17.7) <\/strong>and <strong><strong>OECD (11.2).<\/strong><\/strong><\/p>\n<p><strong>b) Time:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\nA sub-indicator that measures and compares the average time <\/span>(hours) <span style=\"font-weight: 400;\">needed to make the required tax payments. In Bahrain, it takes <\/span><strong>28.5 hours per year<\/strong> <span style=\"font-weight: 400;\">to pay the levied taxes; this is far less than the time needed in <\/span><strong>MENA (196.7)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (159.4)<\/strong>.<br \/>\n<strong><br \/>\n<\/strong><strong>c) Tax rates:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\nThe percentage of the commercial profits need to make the tax payments. In Bahrain, the tax rate constitute <\/span><strong>13.8%<\/strong> <span style=\"font-weight: 400;\">from the commercial profits a company would make. Once again, this is <\/span>lower than the rates of both <strong>MENA <\/strong>and <strong>OECD<\/strong> (<strong>32.7% and 39.8%, respectively<\/strong>).<\/p>\n<p><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>5<\/strong><br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>5<br \/>\n<\/strong><strong><br \/>\nChange in rank<\/strong><span style=\"font-weight: 400;\">: Bahrain\u2019s rank in the top 10 of the index of paying taxes <\/span><strong>stayed the same<\/strong><span style=\"font-weight: 400;\"> between 2018 and 2019.<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score<\/strong>: among all the determinants of the environment of investment in Bahrain, Paying Taxes in the only factor in which Bahrain&#8217;s score remained the same;\u00a0<span style=\"font-weight: 400;\">much like the rank, Bahrain\u2019s earned score in paying taxes <\/span>remained unchanged at <strong>93.89 out of 100<\/strong>.<strong>Change in sub-indicators<\/strong>: A<span style=\"font-weight: 400;\">s you might have guessed already, the measured sub-indicators did not endure any positive or negative changes. This, of course, further explains the fixed rank and score from last year.<\/span><\/p>\n<h3><strong>Enforcing Contracts:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This measures the average needed time and cost of resolving a dispute through a local court in the studied country.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3402\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/11-Enforcing-Contracts-EN.png\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/11-Enforcing-Contracts-EN.png 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/11-Enforcing-Contracts-EN-300x207.png 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong><strong><strong><strong>Sub-indicators:<\/strong><\/strong><\/strong><\/strong><\/p>\n<p><strong>a) Time needed to enforce a contract through courts:<br \/>\n<\/strong><span style=\"font-weight: 400;\"><br \/>\nThis indicates the time a lawsuit would take to be resolved. In Bahrain, a lawsuit would take around <\/span><strong>635<\/strong> days; <span style=\"font-weight: 400;\">meanwhile, it would take <\/span><strong>622 days in MENA<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>582 days in OECD<\/strong>.<\/p>\n<p><strong>b) Cost of enforcing a contract through courts:<\/strong><br \/>\n<span style=\"font-weight: 400;\"><br \/>\nThe sub-indicator that computes the cost as a percentage of the whole claim value of the case. In Bahrain, the percentage was found out to be <\/span><strong>14.7%<\/strong><span style=\"font-weight: 400;\">, <\/span>lower than<span style=\"font-weight: 400;\"> the percentages of both <\/span><strong>MENA (24.7%)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (21.2%).<\/strong><\/p>\n<p>c) <strong>Quality of judicial procedures index:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Out of <\/span><strong>18<\/strong><span style=\"font-weight: 400;\">, Bahrain scored only <\/span><strong>2.5 points<\/strong>; <span style=\"font-weight: 400;\">this indicated a lower quality of judicial procedures in Bahrain than both <\/span><strong>MENA (6.1 points)<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD (11.5 points)<\/strong>.<\/p>\n<p><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>111<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>128<\/strong>.<\/p>\n<p><strong>Change in rank:<\/strong> <span style=\"font-weight: 400;\">Bahrain\u2019s rank in the extent to which the contracts can be enforced during legal disputes dropped by <\/span><strong>17 <\/strong><span style=\"font-weight: 400;\"><strong>ranks<\/strong> from <\/span><strong>111<\/strong> <span style=\"font-weight: 400;\">2018 to <\/span><strong>128<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong><br \/>\nChange in score:<\/strong> <span style=\"font-weight: 400;\">One of the main causes behind the downfall Bahrain\u2019s rank has endured this year is its reduced score in enforcing contracts from <\/span><strong>54.53 points<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>51.75 points<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">The scores of all the sub-indicators have shifted during last year. While the time for enforcing contracts was reduced by <\/span><strong>13 <\/strong><span style=\"font-weight: 400;\"><strong>days<\/strong> from <\/span><strong>635 days<\/strong> <span style=\"font-weight: 400;\">in 2018 to <\/span><strong>622 days<\/strong> <span style=\"font-weight: 400;\">in 2019, the cost has maintained its percentage at <\/span><strong>14.7%<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">However, it was the quality of judicial procedures index that has dropped from <\/span><strong>4 points to 2.5 points<\/strong>. <span style=\"font-weight: 400;\">This was accompanied with an improved performance of both <\/span>MENA <span style=\"font-weight: 400;\">and <\/span>OECD <span style=\"font-weight: 400;\">in the same index, which mainly explains the <\/span><strong>17-rank <\/strong><span style=\"font-weight: 400;\"><strong>drop<\/strong> Bahrain has endured.<\/span><\/p>\n<h3><strong>Resolving Insolvency:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This factor calculates the time and cost that are needed to complete the insolvency procedures of a legal entity.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3407\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/12-Resolving-Insolvency-EN.png\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/12-Resolving-Insolvency-EN.png 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/12-Resolving-Insolvency-EN-300x207.png 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong><strong><strong>Sub-indicators:<\/strong><\/strong><\/strong><\/p>\n<p><strong>a) Time:<br \/>\n<\/strong><span style=\"font-weight: 400;\">The duration <\/span>(<strong>years<\/strong>)<span style=\"font-weight: 400;\"> needed to complete insolvency proceedings, which is found out to be <\/span><strong>2.5<\/strong> years in Bahrain<span style=\"font-weight: 400;\">, <\/span><strong>2.8<\/strong> years in MENA and <strong>1.7<\/strong> years in OECD.<\/p>\n<p><strong>b) Cost:<\/strong><br \/>\n<span style=\"font-weight: 400;\">The cost of completing the proceedings as a percentage of the value of the estate. Research showed the rates to be<\/span> <strong>9.5%<\/strong> in Bahrain, <strong>13.8%<\/strong> in <strong>MENA<\/strong>, and <strong>9.3%<\/strong> in <strong>OECD<\/strong>.<\/p>\n<p><strong>c) Recovery rate:<\/strong><br \/>\n<span style=\"font-weight: 400;\">Calculated as the percentage of cents recovered from one dollar of the estate\u2019s value. In Bahrain, the rate stands at a moderate <\/span><strong>42.2 cents<\/strong>, <span style=\"font-weight: 400;\">while <\/span><strong>MENA\u2019s is 26.3 cents<\/strong> <span style=\"font-weight: 400;\">and <\/span><strong>OECD\u2019s is 70.5 cents<\/strong>.<\/p>\n<p><strong>d) Strength of insolvency framework index:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The factor measuring the quality of the insolvency procedures. <\/span><strong>Bahrain<\/strong><span style=\"font-weight: 400;\">, <\/span><strong>MENA and OECD<\/strong><span style=\"font-weight: 400;\"> scored <\/span><strong>7, 5.9, and 11.9<\/strong> <strong>out of 16<\/strong> <span style=\"font-weight: 400;\"><strong>respectively<\/strong>. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Differences from last year:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Rank in 2018: <\/span><strong>90<\/strong>.<br \/>\n<span style=\"font-weight: 400;\">Rank in 2019: <\/span><strong>93<\/strong>.<\/p>\n<p><strong>Change in rank<\/strong>: <span style=\"font-weight: 400;\">The rank of the ease of resolving insolvency in Bahrain <\/span>dropped by <strong>3 ranks<\/strong> <span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in score<\/strong>: <span style=\"font-weight: 400;\">Even though the ranks dropped, Bahrain scored <\/span><strong>44.57 out of 100<\/strong> <span style=\"font-weight: 400;\">in resolving insolvency index in 2019, indicating a very minimal increase from last year\u2019s score of <\/span><strong>44.42.<\/strong><br \/>\n<span style=\"font-weight: 400;\">This implies that the lowered rank was caused by improved performances of other countries in the index, and not because of a deterioration of Bahrain\u2019s performance.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><strong>Change in sub-indicators:<\/strong> <span style=\"font-weight: 400;\">while both the time and cost of resolving insolvency, as well as strength of insolvency framework index, <\/span>did not go through any changes<span style=\"font-weight: 400;\">, the recovery rate increased slightly from <\/span><strong>41.9 cents to 42.2<\/strong> cents.<\/p>\n<h3><strong>Trading Across Borders:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This indicator measures the smoothness of the logistical procedures of importing and exporting goods to and from a specified country. This is mainly calculated in terms of the cost and time taken to do so.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3408\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/13-Trading-Across-Borders-EN.png\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/13-Trading-Across-Borders-EN.png 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/13-Trading-Across-Borders-EN-300x207.png 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><br \/>\n<span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><b>Sub-indicators:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>a) Border compliance\u2019s time and cost:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">This sub-indicator is concerned with measuring the extent of inspections made by customs and other agencies that occur at the border.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">In Bahrain, border compliance for exported goods was found to take around <\/span><b>71 hours <\/b><span style=\"font-weight: 400;\">and cost <\/span><b>$47. <\/b><span style=\"font-weight: 400;\">The time was found to be <\/span><b>longer than <\/b><span style=\"font-weight: 400;\">the time of both <\/span><b>MENA (58 hours) <\/b><span style=\"font-weight: 400;\">and <\/span><b>OECD (12.5).<\/b><span style=\"font-weight: 400;\"> However, the calculated cost is much <\/span><b>lower than <\/b><span style=\"font-weight: 400;\">the costs of both groups <\/span><b>($442 for MENA <\/b><span style=\"font-weight: 400;\">and <\/span><b>$139 for OECD).<\/b><b><br \/>\n<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">On the other hand, in case of importing goods, border compliance takes around <\/span><b>42 hours <\/b><span style=\"font-weight: 400;\">and costs <\/span><b>$397<\/b><span style=\"font-weight: 400;\">. In this case, both of time and cost for Bahrain stands almost halfway between <\/span><b>MENA (105 hours, $536) <\/b><span style=\"font-weight: 400;\">and <\/span><b>OECD (8.5 hours, $102).<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b><br \/>\n<\/b><b>b) Document compliance\u2019s time and cost:<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This measures the time and cost spent to obtain, prepare and submit the needed documents required by both the exporting country (origin economy) and the importing country (destination economy) to complete the trade transaction.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">For exported goods, document compliance in Bahrain requires <\/span><b>24 hours <\/b><span style=\"font-weight: 400;\">and <\/span><b>$100. <\/b><span style=\"font-weight: 400;\">Both time and cost are <\/span><b>lower than<\/b><span style=\"font-weight: 400;\"> those of <\/span><b>MENA (67.9 hours, $244.6) <\/b><span style=\"font-weight: 400;\">and higher than those of <\/span><b>OECD (2.4 hours, $35.2).<\/b><b><br \/>\n<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Meanwhile, document compliance while importing goods needs <\/span><b>60 hours <\/b><span style=\"font-weight: 400;\">and costs <\/span><b>$130. <\/b><span style=\"font-weight: 400;\">The time is <\/span><b>shorter than<\/b><span style=\"font-weight: 400;\"> what is needed in <\/span><b>MENA (75.5 hours) <\/b><span style=\"font-weight: 400;\">and <\/span><b>longer than <\/b><span style=\"font-weight: 400;\">what is needed in <\/span><b>OECD (3.4 hours). <\/b><span style=\"font-weight: 400;\">Similarly, the cost is <\/span><b>lower than <\/b><span style=\"font-weight: 400;\">the document compliance cost in <\/span><b>MENA region ($269) <\/b><span style=\"font-weight: 400;\">and <\/span><b>higher than OECD ($24.9).<\/b><b><br \/>\n<\/b><b><br \/>\n<\/b><b>Differences from last year:<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Rank in 2018: <\/span><b>78.<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Rank in 2019: <\/span><b>77.<\/b><b><br \/>\n<\/b><b><br \/>\n<\/b><b>Change in rank: <\/b><span style=\"font-weight: 400;\">Bahrain\u2019s rank in the index of Trading Across Border saw a <\/span><b>very slight improvement<\/b><span style=\"font-weight: 400;\"> from <\/span><b>78 <\/b><span style=\"font-weight: 400;\">in 2018 to <\/span><b>77 <\/b><span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Change in score:<\/b><span style=\"font-weight: 400;\"> The score of the ease of trading across borders in Bahrain increased by <\/span><b>1.8 points <\/b><span style=\"font-weight: 400;\">from <\/span><b>75.97 <\/b><span style=\"font-weight: 400;\">in 2018 to <\/span><b>77.77 <\/b><span style=\"font-weight: 400;\">in 2019.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b><br \/>\n<\/b><b>Change in sub-indicators: <\/b><span style=\"font-weight: 400;\">No upward or downward shifts have occurred in most of the sub-indicators. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The only exceptions for that would be the time needed for both document compliance and border compliance while importing goods; the time needed for border compliance was shortened by <\/span><b>12 hours <\/b><span style=\"font-weight: 400;\">from <\/span><b>54 hours <\/b><span style=\"font-weight: 400;\">in 2018 to <\/span><b>42 hours. <\/b><span style=\"font-weight: 400;\">Similarly, the time for document compliance dropped from <\/span><b>84 hours <\/b><span style=\"font-weight: 400;\">in 2018 to <\/span><b>60 hours <\/b><span style=\"font-weight: 400;\">in 2019.<\/span><b><\/b><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Conclusions:<\/b><\/h2>\n<p><b><br \/>\n<\/b><span style=\"font-weight: 400;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3368\" src=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/2-Conclusions-EN.jpg\" alt=\"\" width=\"601\" height=\"415\" srcset=\"https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/2-Conclusions-EN.jpg 601w, https:\/\/www.weetas.com\/insights\/wp-content\/uploads\/2019\/02\/2-Conclusions-EN-300x207.jpg 300w\" sizes=\"(max-width: 601px) 100vw, 601px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on the aforementioned results, we can see how the environment of investment in Bahrain has generally improved over the last year:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The greatest improvement in the conditions of investment in Bahrain was in\u00a0<\/span><b>the degree to which minority investors are protected<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">; throughout the last year, the Kingdom of Bahrain managed to turn this from a weakness into a strength.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Other slight improvements in the conditions of investment in Bahrain took place in <\/span><b>trading across borders<\/b><span style=\"font-weight: 400;\">, mainly in terms of the time needed to import goods,<\/span> <span style=\"font-weight: 400;\">and <\/span><b>easiness of starting business<\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">, mainly in terms of the procedures and therefore the time needed to launch a company.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\">Despite the variant drops in their ranks, most of the other factors affecting the conditions of investment in Bahrain maintained a mostly consistent performance over the last year. To be specific, these factors were <b>the easiness of getting construction permits, gaining electricity, resolving insolvency, \u00a0getting credit, <\/b>and <b>registering property.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The only exception for that would be <\/span><b>the extent of enforcing contracts<\/b><span style=\"font-weight: 400;\"> which endured a <\/span><b>2.78-point drop<\/b><b>.\u00a0<\/b><span style=\"font-weight: 400;\">This has been mainly caused by the reduced <\/span><b>quality of judicial procedures <\/b><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">index. Also, this indicates that this area needs urgent improvements to help improve the status of investment in Bahrain.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Paying taxes <\/b><span style=\"font-weight: 400;\">stands out as the one factor affecting investment in Bahrain that did not witness any changes in both its score and rank; the latter remained at a strong <\/span><b>5 <\/b><span style=\"font-weight: 400;\">out of <\/span><b>190 indexed countries.<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Overall, it is clear that the reforms that took place inside the island kingdom&#8217;s business environment of Bahrain have mostly positively impacted the investment in Bahrain. However, more reforms need to be implemented to capitalize on such momentum and to stimulate the growth of investment in Bahrain over time.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We can all agree on the vital role which the Bahrain plays as a major trade hub in the GCC; the kingdom does not only enjoy a strategic location in the Arabian Gulf, it is also a densely-populated cosmopolitan nation. For these reasons and more, there has been a growing interest in the opportunities of &hellip; <a href=\"https:\/\/www.weetas.com\/insights\/en\/investment-in-bahrain-2019.html\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Investment in Bahrain in 2019: how its factors changed from last year?<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":3412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/3329"}],"collection":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/comments?post=3329"}],"version-history":[{"count":36,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/3329\/revisions"}],"predecessor-version":[{"id":3416,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/posts\/3329\/revisions\/3416"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/media\/3412"}],"wp:attachment":[{"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/media?parent=3329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/categories?post=3329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.weetas.com\/insights\/wp-json\/wp\/v2\/tags?post=3329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}