According to a recent report released by KPMG entitled ‘The Cost of doing business in the GCC – ICT’, businesses in the ICT sector in Bahrain enjoy an annual direct cost advantage of up to 28% when compared to the GCC region, with commercial rental costs, manpower costs as well as internet charges being the most competitive advantages.
The ICT direct annual costs consist of registration and licensing, commercial rental rates, manpower costs, telecom costs, internet charges, electricity and water charges, and IT infrastructure costs.
When it comes to the indirect costs, the report analyses the average cost of living, with a focus on the cost of education, residential utility costs, cost of renting residential properties, and domestic help remuneration. In this matter, Bahrain is the most competitive GCC country by 24% below the regional average with cost of education and accommodation being the most favorable on a regional level.
The report also revealed that UAE is the most expensive GCC country to set up business. As compared to Bahrain, the average annual cost of operations in Dubai is up by 28% and the average annual cost of living by 51%.
Musab Abdullah, Executive Director of Business Development – ICT, at the Bahrain Economic Development Board (Bahrain EDB), said: “The ICT sector is a key enabler for the growth of the digital economy. The Kingdom’s emphasis on highly skilled talent, coupled with lower operating costs, makes Bahrain an ideal location to attract leading development services and content companies.”
In 2022, Bahrain EDB the Kingdom’s investment promotion agency, supported by Team Bahrain, attracted over USD1.1 billion of direct investment from 89 projects, and are expected to generate over 6000 jobs in the local market over the next three years to help achieve the objectives of the Kingdom’s Economic Recovery Plan. These investments were in key sectors, including financial services, ICT, manufacturing, logistics, and tourism.
Under the national Economic Recovery Plan, Bahrain’s Telecommunications, Information Technology and Digital Economy Strategy (2022-2026), aims to increase the efficiency of government services through e-transformation, digitising documents, moving to e-payments, and expanding the use of Artificial Intelligence. The strategy also aims to enhance Bahrain’s digital infrastructure, develop cybersecurity standards, as well as enhance the monitoring response to cyberattacks.
