Background

Bahrain is undergoing a major advancement in its political structure, with the last quarter of 2002 witnessing an elected representative house and an appointed consultative house.

The new democratic reforms are the first of their kind on the Gulf, granting Bahrain's citizens, men and women alike, the freedom of speech, expression, and religion as well as the right to vote and the right to a free trial.
Guaranteed to further reinforce the existing stability is the endorsement of Bahrain's sovereignty over Hawar Islands and Quit'at Jarradah, by the International Court of Justice.
The Government recognises the necessity of broadening the country's economic base and welcomes foreign
investment considered to be economically beneficial.

Investment in sectors which are export oriented and do not compete directly with established local enterprises are particularly encouraged. Industries with heavy requirements for land, water or energy or which are environmentally unfriendly are not encouraged. All firms establishing themselves in Bahrain are required to have 51% Bahraini equity, although this does not apply to foreign investors offering essential technical know-how or required foreign capital, to industrial projects, to firms set up for regional distribution services or representation or to activities otherwise exempt.