Bahrain - The total assets of the Future Generations Reserve Fund amounted to $614.3 million during 2022 and increased to $680.1m during the first half of this year, the Cabinet heard yesterday.

It discussed and approved a memorandum submitted by the Finance and National Economy Minister regarding the fund’s annual report and audited financial statements for the fiscal year ending December 31, 2022, with preliminary estimated performance indicators until June 30 this year.

His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, chaired the weekly meeting at Gudaibiya Palace.

The session also highlighted the importance of the meeting held between His Majesty King Hamad and Egyptian President Abdel Fattah Al Sisi in El Alamein city on Egypt’s northern coast.

The Cabinet noted the importance of bilateral co-operation to achieve common aspirations of development, stability, and prosperity.

The session congratulated Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa, wife of His Majesty and Supreme Council for Women president, on the 22nd anniversary of the council’s establishment, which falls on August 22 of each year.

The Cabinet commended the achievements of Bahraini women and their remarkable contributions to government work, following the council’s adoption of ambitious programmes for them.

The Cabinet expressed its condolences to the US government and the families of the victims of the devastating forest fires in Hawaii, wishing a speedy recovery to those injured.

Source: Zawya

The Kingdom of Bahrain has recently launched a new initiative known as the Golden Licence. This scheme offers a range of incentives, such as corporate income tax exemption for consolidated projects for five years, corporate income tax deferral during the investment period and personal income tax exemption for foreign employees.  

In addition, interested parties will receive simplified assistance and services during the investment process. The launch of the Golden Licence is an important part of Bahrain's efforts to attract and retain investment, and its implementation will help projects achieve long-term success.

This new licence is part of Bahrain's strategy to provide a safe, secure, reliable and competitive business environment for companies.

The new licence is the result of the Government's efforts to attract foreign investment and foster the country's economic development. This measure seeks to increase Bahrain's attractiveness to new investors by providing them with greater flexibility and ease in establishing and operating their businesses in the country.

Benefits offered include the automatic granting of visas to foreign employees, tax exemptions and freedom to import and export products.  

In addition, companies obtaining the Licence will also be able to access a variety of other facilities, such as financing, office rentals, accommodation and consultancy services.

Moreover, through the Licence, companies will be able to rely on the assistance of the Bahrain Investment Agency to help them connect with suppliers of products and services, as well as to find business partners.

This licence will also allow companies to access financial incentives, such as bank loans at preferential rates, business loan guarantees and exemption from import and export taxes. Companies with a Golden Licence will also enjoy additional benefits, such as exemption from property, transport and telecommunications taxes.

The Bahrain Investment Licence is a tax and economic reform introduced in 2021 by the Bahrain Council of Ministers. The licence offers local and international companies a number of incentives to invest in the country, such as integrated cooperation with various government departments, an account manager appointed by the Bahrain Economic Development Board, as well as the possible revision of existing laws or regulations where necessary and applicable.

This initiative is part of the Bahrain Economic Recovery Plan, led by Prince Salman bin Hamad al-Khalifa, Crown Prince and Prime Minister of Bahrain, and aims to attract investment and create jobs locally.

The Bahrain Economic Development Board (EDB) is the main driver of foreign direct investment in the country, working to attract investment from around the world to Bahrain and supporting initiatives that improve the investment climate.  

EDB offers advice to outside companies wishing to establish business or invest in Bahrain, and also provides information and services to foreign investors to help them develop their businesses.

In addition, EDB is committed to the development of quality infrastructure, such as improved transportation, housing construction and energy modernisation, to create an attractive investment environment.

The EDB also strives to promote transparency in government and financial markets, as well as to promote investment in Bahrain's human resources industry, stressing that it is a vital part of economic development and is a key partner for investors seeking a secure and stable environment for their investments.

Source: Atalayar

Bahrain-based foodtech Calo, has raised a $13 million pre-Series A round led by Nuwa Capital and STV. Other investors participating in the round include Khwarizmi Ventures, Al Faisaliah Group and AlRajhi Family Office. This brings Calo's total investment to date to $26.5 million after raising its Seed round last year.

Founded in 2019 by Ahmed AlRawi and Moayed Almoayed, Calo serves personalised meal subscriptions.

The new funds will be used to double down on the GCC market where it currently operates in Saudi Arabia, Bahrain, the UAE, and Kuwait. It will also look to serve new categories, and explore opportunities for regional and international expansion.

Press release:

Calo, a direct-to-consumer foodtech company offering personalised meal subscriptions, recently raised a $13 million pre-Series A round led by two of the region’s largest investors, Nuwa Capital and STV. This round brings the total investment in Calo to $26.5 million after raising its Seed round just last year.

Calo serves personalised meal subscriptions to busy people, catered towards fitness or lifestyle goals. Customers receive their meals daily and get to choose from a rotating menu with over 500 options. The service is loved by tens of thousands of customers that have enjoyed millions of Calo meals. The company prides itself on being customer-centric, and its Customer Experience team goes above and beyond in delivering happiness. Calo reports that most of its customers come through word of mouth.

The new funds will be used to double down on the GCC market, serve new categories, and explore opportunities for regional and international expansion. This comes after the company has expanded to 2 additional countries and 6 new cities this year including Dammam and Jeddah in Saudi, as well as the UAE and Kuwait. Calo’s most recent funding round also included the participation of Khwarizmi Ventures, Al Faisaliah Group, AlRajhi Family Office, and other investors.

Ahmed Alrawi, CEO at Calo, highlights, “We’re delivering millions of meals per year and have consistently been quadrupling in growth year over year. We foresee that this trend continues over the next few years as the wellness wave continues to grow.”

Nitin Reen, a partner at Nuwa Capital, said, “The team at Calo has mastered the ability to hone the fundamentals while continuing to innovate within the realm of foodtech. However, what truly makes Calo special is that they maintain an unrelenting focus on their customers in their journey to a healthy lifestyle. We have a strong belief in the founders and their traction and ability to recruit a very special team, in such a short time, which is a testament to their capabilities and vision. We are very excited to partner with Calo in their next chapter of growth and have every confidence that the team will continue to succeed.”

Mazin Alzaidi, a general partner at STV, agreed, “Calo is truly making healthy easy for thousands of customers across the region. The continuous growth and positive reviews are a sentiment to the teams' obsession with the customer and focus on operational excellence. Calo is solving a real problem, and we are excited to double down on our partnership with the team and company as they solve it for thousands more.”

Calo’s vertically integrated model allows the company to serve its customers a high-quality personalised experience while maintaining healthy margins, making the company’s business units very profitable.

“Today, there’s no global leader in the personalised nutrition space. We believe we can be that company. The biggest food companies in the world serve food that’s good for your tastebuds, but terrible for your body. We’re on a mission to change that,” said Alrawi.

Founded in 2019 in Bahrain, the company has quickly grown to nearly 700 employees located around the world. Calo currently operates in Saudi Arabia, Bahrain, the UAE, and Kuwait, with plans to expand to other markets in the future.

source: Wamda

Two separate meetings have been held in May 2022 in order to strengthening Arab-Swiss economic relations. The first meeting took place in Rabat on May 9, when the Moroccan Minister for Investment, Convergence and Public Policy Evaluation, Mohcine Jazouli, met with the Swiss Minister of State Marie-Gabrielle Ineichen-Fleisch in the presence of, Guillaume Schurer, Ambassador of Switzerland to Morocco. Where the two parties discussed the possibility of introducing new investments in many sectors, and pledged to hold similar meetings in the future. Jazouli commented on the already strong relations between the two countries, noting that the meeting was "an opportunity to present the various investment opportunities offered by Morocco to the Swiss officials." On the other hand, Ms. Ineichen-Fleisch described the relations between the two countries as "excellent".

Geneva Chamber of Commerce, Industry and Services in cooperation with the Swiss Chamber of Commerce in Morocco had previously held a meeting in late April under the slogan "Focus on Morocco".

Commenting on the recent talks that brought the two sides together, Ambassador Guillaume Schurer referred to the Swiss-Moroccan agreement signed in December 2021, considering that the agreement allowed for "increasing cooperation in all areas."

On the other hand, a meeting was held in Manama on May 12, as part of an official visit by the Swiss economic mission to the Kingdom of Bahrain, where the mission met with the Undersecretary of the Ministry of Industry, Commerce and Tourism Iman Al-Dosari, in the presence of the Swiss Ambassador to the Kingdom of Bahrain, Massimo Badji and the Ministry Assistant Undersecretary for Domestic and Foreign Trade, Shaikh Hamad bin Salman Al Khalifa, and a number of senior officials in the ministry. The meeting dealt with bilateral economic relations between the two countries and ways to enhance them.

The Arab-Swiss relations occupies a distinguished position on the economic level. Switzerland is one of the most important commercial partners for the Arab countries, as it accounts for about 10% of the total Arab trade exchanges with the Europe.

Recent years have witnessed a development in Arab-Swiss economic relations, especially with the Arab Gulf states, in the same time relations between Morocco and Switzerland have improved significantly in the past few years.

Golden Residency Visa, announced by the Interior Ministry, will be renewed indefinitely

Bahrain on Monday introduced a new permanent residency visa to attract talent and investment, part of a trend in Gulf states to offer more flexible and longer-duration visas amid regional economic competition and as Bahrain works to fix its finances.

Foreigners in Gulf states have traditionally had renewable visas valid for just a few years tied to employment, limiting their stay.

The Golden Residency Visa, announced by the Interior Ministry, will be renewed indefinitely, include the right to work in Bahrain, unlimited entry and exit, and residency for close family members.

"(The visa) is aimed at attracting investors, entrepreneurs, and highly talented individuals who can contribute to Bahrain's ongoing success," the statement said.

The move is part of measures the small Gulf state is taking to resolve its heavily indebted finances. In October, it announced a new economic growth and fiscal balance plan, including major infrastructure projects.

To qualify for the visa, a person must have resided in Bahrain for at least five years and earned an average salary of at least BHD 2000 ($5,306) per month.

Those who own properties above a certain value, and retirees and "highly talented" individuals who meet certain criteria will also qualify.

Gulf neighbour and regional tourism and business hub the United Arab Emirates has, over the past couple of years, introduced longer-duration and more varied visas, and the chance to be granted Emirati citizenship, in a bid to retain professionals and their families.

source: zawya

Aside from oil, the aviation sector secured the highest value of tenders at $476mln

An increasing number of infrastructure, transport, and construction projects in Bahrain has spurred the value of tenders issued by the kingdom by 60 percent in the first half of 2021 compared to the same time last year.

Bahrain awarded $3.4 billion worth of tenders in the first six months of the year, including 762 non-oil contracts worth $1.6 billion, according to new figures from the Tender Board. Aside from oil, the aviation sector secured the highest value of tenders, at $476 million, followed by the construction industry, at $413 million.

Shaikh Nayef bin Khalid Al Khalifa, Chairman of the Tender Board, said: “The Kingdom is currently undergoing a $32 billion transformation which is changing the infrastructure, industrial, hospitality and retail sectors through public and private investments. There is a huge opportunity for regional and international companies across sectors to come and capitalise on the increasing value and number of tenders being issued in Bahrain.”

“Bahrain was the Gulf’s first country to diversify its economy away from oil and the figures for the first half of 2021 show that we are continuing to facilitate that drive. Now that the pandemic is beginning to subside, we can press on with lots of exciting projects across our industries,” he added.

The recently opened a new airport terminal as part of a $1.1 billion modernisation of Bahrain International Airport has handled more than 920,210 passengers and 9,176 flights since it opened in January.

Bahrain offers 100 percent foreign ownership in several sectors including manufacturing, industrial services, and distribution without any free-zone restrictions.

source: Zaway

Bahrain Fintech Bay (BFB) and the US State Department’s Middle East Partnership Initiative (MEPI), have teamed up to launch a virtual acceleration programme called “Build for Bahrain”.

The programme aims to enable local startups to develop innovative solutions that address the challenges in the health and business continuity sector while supporting the economic recovery of the Kingdom and future-proof its digital economy.

“We are proud to be launching this first of its kind programme in the Kingdom of Bahrain with our partners at the US Department of State Middle East Partnership Initiative and we believe tangible cross border collaboration will pave the way for future impactful projects.

‘Build for Bahrain’ is one of several programmes introduced by Bahrain FinTech Bay’s ‘Innovate for Bahrain’ initiative which aims to accelerate economic recovery, health, and prosperity and as an outcome crystalise the kingdom’s long-term commitment to innovation,” said Khalid Dannish, CEO of Bahrain Fintech Bay.

The programme will first accept and review 20 tech-enabled proposals from local startups.

The shortlisted teams will be put into an incubation programme at the BFF, through which they receive mentorship from industry experts and work on developing their minimum viable product (MVP).

The finalists will have the opportunity to pitch at a demo day, where only three teams will receive funding to further develop their solutions.

source: wamda

The Central Bank of Bahrain (CBB) has given UK blockchain startup Fasset, a first-of-its-kind authorisation to test its digital solutions inside the Kingdom’s regulatory sandbox.

Founded in 2019, the financial technology (fintech) startup is a blockchain-powered marketplace for the ethical financing of sustainable infrastructure. It looks to bridge the sustainable infrastructure funding gap which the World Economic Forum estimates will reach $15 trillion by 2040.

The company offers a tokenisation service for sustainable infrastructure assets and provides an exchange platform where these tokens can be traded.

“As disruptive technologies transform industries around the world, investment in innovation is a key enabler and driver of economic growth. Bahrain’s forward-thinking regulatory approach provides an attractive environment for fintech companies to reap the benefits of our agile economy, availability of the most skilled and diverse workforces and the best value operating costs in the region. We are delighted to welcome Fasset to Bahrain and we look forward to welcoming many more fintech companies,” said Dalal Buhejji, director of business development, financial services at Bahrain Economic Development Board (EDB).

The company has raised $4.7 million in pre-seed investment from strategic backers in the UAE, Saudi Arabia, Bahrain, Kuwait, and Singapore.

“We thank the Central Bank of Bahrain and Bahrain Economic Development Board for their continued support,” said Aziz Zainuddin, chief product officer at Fasset. “The CBB has fostered a unique and supportive setting for startups in the region to flourish and to build impactful companies of the future.

The CBB granting us this authorisation is proof of the progress the Ethereum developer community has made to earn the trust of regulators worldwide. Moreover, it is testament to the pioneering and pro-innovation spirit of Bahrain, where ideas for tackling the world’s most pressing issues based on even the most cutting edge technologies are given the opportunity to take flight.”

source: wamda

The GCC cities dominated the global Financial Attractiveness Index list with Bahrain’s capital Manama being named the world's most financially attractive city in AIRINC’s latest Global 150 Cities index. Riyadh is in 4th place, Kuwait City in 6th, Abu Dhabi in 7th, and Dubai in 12th on the list. 

The index https://www.air-inc.com/global-150/ ranks 150 of the top global locations according to financial attractiveness and lifestyle attractiveness. It combines local salary levels, tax rates, living costs, and living conditions to assess how appealing each location is to live in.

Every single GCC member was represented in the top 20 most financially attractive cities in the world, according to AIRINC’s latest Global 150 Cities Index. 

The data is collected by AIRINC’s own in-house survey team, who continuously research the costs and living conditions of many cities around the world to evaluate international mobility.

GCC economies have invested considerable sums in making themselves more attractive to international businesses in line with ambitious region-wide economic diversification efforts, it stated. 

As the first GCC member to begin diversification, Bahrain offers one of the easiest and most cost-effective environments to set up and operate a business in the world. 

Businesses operating in the Kingdom enjoy 0% tax and 100% foreign ownership allowed.

Thanks to its comprehensive programme of reforms, increasingly digital Bahrain was recently named the fourth most improved economy in the world by the World Bank’s latest Ease of Doing Business report. 

As well as ranking first in the world for financial attractiveness in the AIRINC index, Manama also jumped 15 places for overall attractiveness, to 48th.

source: tradearabia

As any startup will attest, agility and quick response to market demand is key to survival. The same can be applied to other stakeholders in the startup ecosystem.

Recently, the Middle East and North Africa’s capital cities have scrambled to establish entrepreneurship hubs and so the competition has intensified, particularly for the smaller nations whose budgets do not match the deep pockets of some of their neighbour’s.

In the midst of decrees and announcements, Bahrain has managed to establish a business environment that the Milken Institute believes will position the country as a “major hub for finance, technology and innovation”.

Since 2015, foreign direct investment (FDI) has increased from 0.2 per cent of gross domestic product (GDP) to 4 per cent in 2018.

The number of firms in the private sector has increased by 50 per cent alongside a 30 per cent rise in the number of jobs in the private sector according to data from the Labour Market Regulatory Authority.

According to Milken’s report, micro, small and medium-sized enterprises account for 30 per cent of GDP.

Fuelling this growth has been Bahrain's geographic position and its proximity to Saudi Arabia, providing easy access to the region's largest market.

But now that the Kingdom has embraced entrepreneurship and has pushed through several agendas and government initiatives to encourage foreign investment, Bahrain risks losing its competitive edge. 

We spoke with Pakiza Abdulrahman, manager of startups at the Bahrain Economic Development Board (EDB), a government agency tasked with attracting investment and supporting private sector growth.

EDB’s Startup Bahrain initiative has been instrumental in encouraging entrepreneurship, but how much involvement should the government have?

Governments should play an enabling role and not lead the innovation agenda. We want to enable the ecosystem to sit together and collaborate and bring to the table the most important matters that we as regulators should fix and improve.

Bahrain is strategically positioning itself as a gateway to the global market, particularly for Egyptian and Mena-based startups.

We have very close proximity to the largest market in the Middle East [Saudi Arabia]. Our mandate is to diversify the economy, attract FDI and create jobs that are in line with the knowledge economy and Bahrain’s 2030 Vision.

Saudi is a huge market to navigate, it is easier to come in as a GCC-based operation. What we try to do in Bahrain, is to focus on incentives and benefits that are provided to startups setting up in the country.

We don’t have a freezone area, the whole country is open to 100 per cent foreign ownership.

As our strategic position with the East and West, we’re positioning ourselves for different niches.

What are these niches?

Fintech, IOT [internet of things], e-commerce, logistics. Game development and publishing has been something really big for Bahrain recently. The calibre [of talent] in the country is high, they’re bilingual, tech savvy, they know the culture of Saudi and the Middle Eastern market and we have high mobile penetration.

Where are the startups that set up in Bahrain from?

The majority of startups are coming from the UK, South East Asia, India, Singapore and the Middle East, from Lebanon, Jordan and Egypt. Companies from Saudi Arabia and Kuwait are also coming. It is 30-40 per cent cheaper to set up here than in the UAE. It is a 50:50 ratio split of Bahraini and resident founders of startups and foreign companies.

Amazon chose Bahrain to launch its Amazon Web Services (AWS), what impact has that had?

The Amazon impact has been huge, it gives testament to the strong ICT infrastructure in Bahrain, the connectiveness with other data centres globally, it gives testament of the eagerness of the government to move to the cloud.

We have a cloud-first policy, all government entities have to be on the cloud, that created huge hype in the country and pushed the private sector banks that were reluctant to go on the cloud.

It has also opened up a huge opportunity for local talent to be upskilled.

Saudi Arabia is embracing entrepreneurship, how can Bahrain maintain its advantage as a gateway to the country?

We’re a small market, we need to be very creative and strategic in the way we tackle this challenge. We have been doing so by opening up to global markets, empowering education among different sections in the ecosystem, whether it's youngsters or early retirees from government programmes with ideas and skills they need to be directed.

This is what we do at Startup Bahrain – we keep the momentum and rooting back to the single platform that gives you all of this – it is community driven we back it up and it grows as the community grows. We do a lot of roundtables to listen to the startups and try to shape up the market and shape up the regulation as they need.

Markets in KSA and UAE are huge and saturated as well, sometimes for South Korean companies and Asian and Arab-based companies, they find it hard to navigate.

At EDB, we handhold startups and accelerators throughout the whole process of registration, ensuring they come out of it with meaningful relationships and introduce them to key decision makers.

source: wamda