Like many countries in the Gulf Co-operation Council (“GCC”), Bahrain is tax free for most private companies (except for those in the oil and gas exploration, refining and production sectors). However, unlike many countries in the GCC, Bahrain allows 100% ownership of business assets in certain sectors.

In addition, Bahrain and the United States have signed a bilateral Free Trade Agreement which became effective in 2005 and allows for the relaxation of certain restrictions on trade and investment between the United States and Bahrain. Under the Free Trade Agreement, US nationals are given GCC recognition for investment purposes, allowing them to invest in business activities that might otherwise be restricted for foreign nationals.

With regard to property ownership, this is still restricted in relation to foreign investment but foreigners are allowed to buy land in certain designated areas.