Some questions can only be answered by asking a counter question. “Is Bahrain a good place for doing business?”
The answers could be: Is it not enough that the country boasts centuries of trading history? Is it not enough that the government is supportive and encourages the business community? To know that the nation offers the best of the modern world with security for businesses? Or that the country’s  judicial system is fair and the country guarantees Freedom of Press and religious tolerance in a democratic and Parliamentary governing system? And many more reasons.
Bahrain’s islands were home to one of the great trading and advanced empires of the ancient world (Mesopotamia Indus Valley Civilisations).  Known then as Dilmun, the seat of the historic Dilmun Civilisation; Bahrain was also known as Tylos and Awal in the past. Bahrain (meaning Two Seas), is also fondly called by the people of the region as the Pearl of the Gulf, as Bahrain’s waters produced the finest pearls. Bahrain’s Al-Khamis Mosque is the oldest extant mosque in the world—a pride not just of the country, but the entire Islamic world.
Interestingly it is historically established that Bahrain was the seat of two of the five bishoprics of the Nestorian sect of Christianity existing in the Gulf at the time of the arrival of Islam. Trade and cultural links were further extended.
Fast forward to 1932, Bahrain came into prominence from being a trading and pearling nation to becoming the Land of Black Gold, as the region’s first oil was struck here.
A few decades later when it was realised that the oil supply was finite, the country’s leadership diversified its oil-based economy and established the aluminium industry (which today plays a major role on the global scenario) and then in the 70s took the decision of becoming a banking and finance centre, placing Bahrain among the top five world banking centres and a world leading force in Islamic banking and finance.
With the unprecedented reforms introduced by the present leadership, His Majesty King Hamad bin Isa Al Khalifa, the country now has a bi-cameral Parliamentary system--two houses (Lower and Upper) comprising 40 elected and 40 appointed members.
According to the 2009 report of the Heritage Foundation/Wall Street Journal Index of Economic Freedom, Bahrain is the freest economy in the Middle East but also the 16th freest economy in the world, ahead of Japan, Belgium, Austria, Germany, Sweden and Norway.
As for the UN Human Development Index, Bahrain has been the Arab world’s topper for several consecutive years. It also scores the highest in the area of ‘Woman Empowerment’ among the regional states. The World Health Organisation has awarded the third top position worldwide to Bahrain’s public health service, and that is no small feat either.
It was here in Bahrain in the early 30’s a formal education school for girls was opened—a first for the region, and the country continues to be the most educated among regional states.
In the area of ‘Woman Empowerment’, Bahrain enjoys an unmatched position among the regional states. The fact that the country’s  ‘Woman Empowerment’ programme is looked after by the Supreme Council for Women, which is headed by Her Highness Shaikha Sabika bint Ibrahim Al Khalifa, the wife of His Majesty—is a testimony in itself.
As for religious tolerance, not only does Bahrain lead in the region among Islamic states, it even has a synagogue. Further to note that a magnanimous gesture in the early 70s by the late Amir His Highness Shaikh Isa bin Sulman Al Khalifa--the father of the present ruler, His Majesty the King--which remains unparalleled even today.
Additionally, His Highness the late Amir, not only gave a personal donation of BD10,000 towards the construction of the new sanctuary of the National Evangelical Church...but  in 1971 he personally came to cut the ribbon to mark the inauguration of the place of worship for Christians. He signed the ‘Visitor’s Book’ as the first visitor and made it ‘official’ not just his visit...but Bahrain’s religious tolerance and freedom of worship for all.
These and many such developments, the trade links with the great ancient civilizations, the continuity in trading and the forward-looking approach of the ruling family, the Al-Khalifas; the country has been moving forward with great zeal, openness, and transparency in all affairs. Bahrain assurres foreign businessmen and investors that the country will remain their regional ‘First and Best Choice for Doing Business in Bahrain and from Bahrain.’
Indian businessmen who have been thriving in Bahrain for decades will testify to the highly encouraging business environment.
Baboo Kewalram, the patriarch of Kewalram and Sons that was founded by his father Haridas Kewalram in 1922 as a trading house, is all praise for the government’s support for business and commerce.
“The government makes no discrimination between the local businessmen and foreign investors, and we have full freedom in running our business,” he says. Kewalram, came to Bahrain at the age of 19 in 1954 to help his father and elder brother to run the family business and he remembers how they were visionaries.
“Religious tolerance is among the finest advantages one can enjoy in Bahrain,” he declares. There are several Hindu temples, Christian churches, Sikh Gurudwaras as well as a synagogue. And all of them worship following their faith here freely. It is this level of religious tolerance that makes Bahrain a very special place,” he enthuses.
“The people of Bahrain respect foreigners. Many senior royal family members welcome us whenever we seek an audience. So is the case with the ministers and other businessmen. I saw many of them growing up and visiting our shops as young boys and girls, and that ‘bond’ is evident everywhere,” he says.
“While we are in the midst of global recession, and the national economies and many large business entities and banks are crumbling; Bahrain has fortunately not been affected as badly as many other places. This is because the government has always taken wise decisions for the long term benefits of its people. Therefore the overall business atmosphere in Bahrain is still comfortable, although some areas are marginally affected,” he admits.
“The entire country in the 50s and 60s was like a single family, and we enjoyed living here, and it is still home to us. Among the most touching expewriences was when my elder brother died in a plane crash in India in 1988. The Late Amir His Highness Shaikh Isa bin Sulman Al Khalifa expressed his wish to grant our family members an audience so that he could pay his heartfelt condolences,” recalls Kewalram who is fluent in Arabic and Farsi and is currently the Vice Chairman of the Bahrain Asian Traders Committee (BATC) at the Bahrain Chamber of Commerce and Industry.
“The Committee holds regular meetings and takes up BATC members’ business- issues of immigration, labour-related matters etc., to the concerned authorities and works for the benefit of its members. It makes us feel more secure and confident in running our business and in investing more because we get all the cooperation from the authorities at all levels and such things are important for establishing, running and expanding business,” he points out.
“Additionally, modern Bahrain    enjoys excellent, telecommunications system, has a well-developed banking sector, and a well-trained local workforce with fair laws and judiciary system. The tax-free environment, the availability to start business in your name with 100 per cent ownership or forming a WLL business is possible in a few easy steps,” he says adding that “this is the best place to do business.”
For Bharat Jashanmal, a member of the prominent Jashanmal family, there are several advantages of starting a business in Bahrain: “Bahrain has a well-developed legal structure which is critical: one knows where one stands! Bahrain is also the major banking and financial services centre of the region.” A high proportion of his major business activities deal with this sector.
“Furthermore, the Economic Development Board (EDB), the Ministry of Commerce, and the other government agencies, are all pro-active in encouraging businesses to establish in Bahrain,” he notes.
Bharat, who left the active day-to-day operations of the Jashanmal Group in 2002 and established his own company, Jashanmal Consultancy Services, says he provides ‘advisory services’ to businesses that already operate in the GCC states and India, or to businesses wishing to enter those markets.
Starting a business from scratch is always a challenge for any businessman, says Bharat  who is proud  to be in Bahrain. Highlighting the history of the Jashanmal family business, which is currently celebrating its 90th year of establishment, he recalls how the company was founded by his grandfather, Rao Sahib Jashanmal, in 1919 in Basra, Iraq.
The Bahrain operations commenced in 1933, “and my late father, Atma Jashanmal, took over the operations in Bahrain in 1938. Jashanmal today has operations across all the GCC states with the exception of Saudi Arabia, and it also operates in India. The business is currently managed by professional management, but with strong Jashanmal family representation at board level, principally by Tony Jashanmal, who is nominally based in Kuwait, but also has residence in Dubai, which is now the headquarters of the Jashanmal Group.”
Commenting on how different is Bahrain from other GCC states in terms of offering economic, social and other aspects of lifestyle, the western-educated Bharat asserts that “Bahrain has its very own culture and lifestyle that differentiates it from the other GCC States”.
Vijay Boloor, Executive Director of the Gajria Group BSC, a Bahraini Shareholding Company, follows a simple motivational mantra in life: “Follow Your Dreams.”
Vijay has the same advice for any new entrepreneur or for those who already have running business: “Follow your dreams and if you have a desire to start a business there is no better place than Bahrain for both economical as well as for receiving  encouragement from the concerned government authorities at all levels, besides social and religious worship freedom”.
Bahrain also offers direct access to Saudi Arabia, the biggest GCC market, says Boloor, son-in-law of the founder Lalchand Gajria who incidentally is the only first generation living Indian businessman to see his company cross the 50-year mark, He started it as a small trading shop in 1948 and it grew with the overall development of the island nation.
“The other reason is that the country’s laws are business-friendly. It also has a local labour force that is bi-lingual (Arabic and English)”, he adds. “You don’t need a local partner in Bahrain to start your business, and depending on the nature of your business, you can have full ownership and enjoy a tax-free environment with no restrictions on repatriation of money, he reveals.
“It is this business climate that makes Bahrain the best place for doing business. So follow your dreams, come to Bahrain and enjoy the growth of your business.” Boloor, is an accomplished public speaker who has been the exemplary District Governor of Toastmasters International and has published a book called “Rules Not Taught In Schools”, a compilation of inspirational quotes.
If some of the above businesses were founded many decades ago, there is a new entrant on the business horizon who made it big.
Razzak Muzhikkal is a great example of rags–to-riches and personal development story. He came to Bahrain in 1977 at the age of 16 and started doing odd, low-paid jobs for a living. He had a very little knowledge of English, but he spotted opportunity when he happened to work for a number of years for a real estate and property maintenance company. Through sheer determination and hard work, by learning the tricks of the trade he realised his dream. Today, Muzhikkal who founded his WLL company in 2004, is a leading name in property management sector in Bahrain with diversified business interests.
“For any investor, Bahrain is truly the best place for doing business and I am one of the examples of this. I benefitted from the government’s policy of allowing foreign nationals to establish a WLL company and formed a company with my wife as one of the directors and I strongly recommend Bahrain to anyone who wishes to start a business. The concerned ministries and authorities are very, very cooperative,” says Muzhikkal, Chairman of the Razzak Muzhikkal Group, pointing out that obtaining visas and other work permits are relatively easy. He is also the Managing Director of the McGrow Group, whose business covers real estate, advertising, hotels and IT etc., with plans to venture into publishing in Bahrain.
Being in the real estate business, Muzhikkal  emphasises that Bahrain is the only GCC state that offers expatriates complete ownership of property. “The property can be registered in your name and you have the right to sell it if you wish to.” Property rents, both commercial and residential, are quite low here compared to other GCC states. Muzhikkal recommends that potential investors visit the Ministry of the Industry and Commerce website (http://www.moic.gov.bh/moic/en), which has won a number of prestigious awards, and the Economic Development Board (www.bahrainedb.com).
Ashish Bhugra, Country Business Manager, Global Consumer Group, Citibank, Bahrain also agrees that the country offers numerous advantages for doing business.
“With its liberalised economy and business friendly policies, Bahrain is an attractive business destination for investors. Bahrain was one of the first Gulf countries that diversified its economy and facilitated programs to establish new businesses,” he points out.
Additionally, in Bhugra’s opinion, Bahrain offers the following advantages as an investment destination: A strategic location at the heart of the Arabian Gulf, providing ideal access to the GCC;100 per cent foreign ownership to onshore companies for most categories of business; Highly favorable tax environment, with no corporate, 1 percent personal, and no value-added or withholding tax; Sustained low rate of inflation, No restriction on repatriation of capital, profits or dividends; Cost-efficient, trained and bilingual human capital; High standard of living with a cosmopolitan atmosphere to attract good foreign talent, The Causeway connection to Saudi Arabia, offers the largest single market in the region, with another causeway with Qatar currently underway. The legal and administrative infrastructure is mature, elaborates Bhugra, while praising the highly-competent governance of the Central Bank of Bahrain.
Giving general advice to the NRIs in terms of savings and remittances considering the global recession and unemployment, Bugra suggests it is always prudent to have a diversified investment portfolio. “A combination of a weak rupee and depressed property market make for a compelling case for investment in the Indian real estate sector. Though one must remember that property investment is all about three key factors: Location, Location and Location!”
Bhugra also refers to the adage: ‘‘Progress always involves risks. You can’t steal second base and keep your foot on first’. Similarly, one can’t keep money in a bank deposit and expect the best returns on the investment” declares the Citibanker.
“One must remember that inflation often erodes into returns that Bank deposits offer. In the long run, research indicates that Global equities offer the most attractive investment opportunities. Global investors have earned a risk premium of 4.2 per cent per year from investing in equities rather than cash. Prospectively, the authors argue that equities are likely to outperform cash by 3 to 3.5 per cent per year over the long run. While 3.5 per cent per year may sound a modest premium, equity returns still compound quite quickly. Equity investors can expect to increase returns by around 40 per cent relative to investing in cash over a 10-year horizon, and double returns over 20 years. “