Bahrain enjoys an annual direct cost advantage in the ICT sector 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.
According to a recent report released by KPMG entitled ‘The Cost of doing business in the GCC – ICT’, 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.
Key enabler
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 $1.1 billion of direct investment from 89 projects, and are expected to generate over 6,000 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.-- TradeArabia News Service