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Bahrain Business Report
General information
Source: The World Factbook - Central Intelligence Agency
Population
1,442,659 (July 2018 est.)GDP (PPP)
$71.2 billion (2017 est.)Oil and natural gas play a dominant role in Bahrain’s economy,oil still comprises 85% of Bahraini budget revenues. Other major economic activities are production of aluminum - Bahrain's second biggest export after oil and gas –finance, and construction.
GDP growth rate
3.8% (2017 est.)Still high, despite the oil price decrease.
GDP (PPP) per capita
$49,000 (2017 est.)Very high
Local currency
Bahraini dinar (BHD)Pegged to the USD (1$ = 0.376 BHD)
Financial stability (Public debt)
88.5% (2017 est.)High, it has grown a lot over the last 2 years due to oil prices declining. Three major US credit agencies downgraded Bahrain’s sovereign debt rating to "junk" status in 2016.
Inflation
1.4% (2017 est.)Low
Language
Arabic (official)English is widely spoken
Corruption perception index (Source: Transparency International)
Rank 99/180High level of corruption
Duties and tax
Source: PwC World Tax Summaries 2017-2018
VAT
VAT has been implemented in Bahrain as of 1 January 2019.The general VAT rate is 5% and applies to most goods and services, with a number of exceptions where certain goods and services may be subject to a 0% rate or be exempted from VAT.
Corporate Tax
There are no taxes in Bahrain on income, sales, capital gains, or estates, with the exception, in limited circumstances, to businesses (local and foreign) that operate in the oil and gas sector.Duties
The general rate of customs duty is 5% of the value in cost, insurance, and freight (CIF), except for alcoholic beverages, which is 225%, and cigarettes, which is 200%.Certain categories of goods, such as paper and aluminium products, are subject to 20% duty rate.
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