Economic prosperity, low inflation to lure more foreign funds
Bahrain, being a financial centre in the Middle East, has emerged as an extremely competitive destination for new businesses to set up their operations as well as for the investors in the real estate sector. Bahrain is an ideal place for investors with a low inflation and 50 per cent cheaper than Doha or Dubai.
Stephen Rothel, Chief Executive Officer, Bahrain Financial Harbour Holding Company (BFHHC), in an interview said that Bahrain being the banking and financial centre in the Middle East would continue to be a focal point for the foreign investors many years to come.
The factors which help to attract foreign investors, he continued, will trigger the inward investments as the multi-billion ongoing projects in the Kingdom have put this country at top. "The basic factors like stability, economic prosperity, inflation and a secure regulatory environment for businesses are just few but important pillars to lure investments."
Stephen, who signed the largest lease deal for the $1.5 billion at West Towers of the BFH with a global banking player BNP Paribas last week, said that the projects like BFH among others would help to elevate the Kingdom's status as an emerging market for real estate and retail business."
"The overall economic indicators are strong and competitive prices for any company's offices and residences will continue to attract more foreign businesses and companies," he added.
Talking about the occupancy of the BFH project, he said that the response from the investors has been overwhelming since the launch of the project. "We have already signed deals with major names and businesses and there will major announcements in the near future. The next three to four months will be very busy for BFHHC as a number of tenants will announce the agreements."
The BFHHC had signed the biggest-ever lease deal since the opening project with the global banking major BNP Paribas for an uptake of five floors (covering a total area of over 5000 square metres).
The BNP regional offices will be located in the Harbour Towers, which forms a key component of the recently launched Financial Centre-Phase, I of the landmark BFH.
In the meanwhile, Bahrain Bay Development, the development company for the $2.5 billion waterfront metropolis located off Manama's northern shore, has said that by the year-end 50 per cent of the total land of the project is set to be sold out.
It also announced that construction of two of its anchor developments, the $210 million Arcapita's new HQ and $150 million the Kingdom's first Four Seasons Hotel, was well under way and on schedule. The company expects a return of between 20 and 30 per cent per annum.
Upon completion Bahrain Bay, Bahrain's largest integrated coastline development, will attract between 20,000 to 25,000 visitors per day, making it perhaps the busiest place in the Kingdom.
All these indicators show that Bahrain with $10 billion ongoing real estate projects would continue to be a point of attraction for the investors, corporate clients and businesses.
By Mahmood Rafique Business Correspondent
© Bahrain Tribune 2007
