New KPMG report finds that the overall cost of doing business in Bahrain is lower than in Dubai and Qatar by 37% and 46% respectively

Manama, 10 February 2016

A new report by KPMG has revealed that Bahrain enjoys some of the region's lowest operating costs for financial services institutions. The report covered the average costs of a range of factors including commercial rental rates, occupancy cost, manpower cost, communication and utility expenses, in addition to the average cost of living.

Financial sub-sectors that require higher numbers of educated, bilingual employees, such as ancillary services for the insurance, asset management and Islamic finance sectors, are particularly well placed to benefit. Bahrain offers higher value manpower costs, at an average of 6 per cent and 15 per cent less than Dubai and Qatar respectively.  Furthermore, the participation of nationals is much higher in Bahrain.

In addition, Bahrain offers lower residential and education costs than both locations, with average rental rates in Dubai and Qatar reaching twice those of Bahrain. As well as enjoying lower education costs in Bahrain, institutions with operations in the Kingdom will also benefit from organisations such as Tamkeen, the national labour fund, and the Bahrain Institute of Banking and Finance.

Mr Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB), commented: "The financial services sector offers scope for complementary growth across the GCC region, but this report demonstrates that Bahrain presents particular benefits for businesses seeking to build a regional presence in key subsectors or to develop back office operations. As well as offering a strong value proposition and skilled local workforce, the Kingdom also has a long-established and well-respected regulatory framework and a liberal, supportive business environment."

Head of Financial Services at KPMG in Bahrain, Mr. Jalil Al Aali also added, "We are honored to be part of this important initiative and to provide an independent overview of the Financial Sector in Bahrain, a critical sector in the local economy.  The report's findings confirm that this sector remains attractive for foreign investors despite the strong regional competition."

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About Bahrain EDB
The Bahrain EDB is a dynamic public agency with an overall responsibility for attracting investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths.

Key areas of focus include manufacturing, ICT, tourism, and logistics and transport services as well as other sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic Finance, Asset Management, Insurance and Re-Insurance.

For more information on the Bahrain EDB visit www.bahrainedb.com; for information about Bahrain visit

About KPMG
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such

Contact:
May Taher, Bahrain Economic Development Board
Tel: +973 17 589 972
Email: internationalmedia@bahrainedb.com  

Afrah Faraj, Marketing and Communications Manager
KPMG in Bahrain
Tel:  +973 17201495
Email: afaraj@kpmg.com

© Press Release 2016