 "Indian firms can use Bahrain to tap GCC mkts: Simon Gaplin")
Simon Gaplin, managing director of Economic Development Board, Bahrain, was in India to convince Indian companies to set up businesses in his country to access the wider Gulf Cooperation Council (GCC) market. He tells Dilasha Seth and Indivjal Dhasmana that Bahrain is the freest economy in the region and offers a wide range of opportunities for Indian firms to set up base there. Edited excerpts:
What is the purpose of your visit to India?
Our role is to really encourage Indian companies to expand beyond India, to take advantage of market opportunities and use Bahrain to gain access to new markets in Saudi Arabia, United Arab Emirates (UAE) and across GCC. So, our role is basically to make Indian companies expand.
Bahrain is an open economy. It is the freest economy in the whole of the main region. You don't need to have a local partner; you can have wholly-owned businesses in many different sectors. Bahrain has no tax. It has no income tax, no sales tax, no tax on investments, and no corporate tax. And, there is government support for those businesses that are going to create employment in Bahrain.
Which areas are Indian companies currently present in Bahrain?
We have a number of Indian companies in Bahrain, some of whom for decades. We need to do more to promote Bahrain. Dubai, UAE have been very successful in attracting a wide variety of Indian companies. We feel that perhaps some of the opportunities in Bahrain have not been communicated by us as they should have been done. We need to change that. We're trying to communicate facts that companies can access, particularly Saudi Arabia, very effectively from Bahrain.
What about those companies that have already set up base in Dubai and other GCC countries?
For companies which have already been established in Dubai, it makes sense to them to consider Bahrain when they are expanding. According to a KPMG report, some manufacturing costs are 40 per cent lower in Bahrain than in UAE.
Which are the areas where Indian companies can expand in Bahrain?
Bahrain has a very large aluminum smelting industry. So, there are large opportunities for downstream aluminum manufacturing industries. We have been working with Indian firms that are looking at setting up small-scale manufacturing or distribution outlets to serve that market. The new opportunity we feel is tourism. We like to encourage Indian hotels and Indian destination marketing companies to tap that sector. We get 30 million visitors. We think there is a scope to reach out to Indian visitors.
How has decline in oil prices affected Bahrain's economy?
Even prior to the drop in oil prices, Bahrain was trying to diversify. The drop in oil prices has given the government more incentives to do so. So, we're focusing on tourism, the financial sector and ICT (information and communications technology).
How can Indian companies tap the financial sector and ICT markets in Bahrain?
We already have a number of Indian banks. But, we're also looking at start-ups in India. There could be an Indian start-up that has reached a particular point, now looking to expand its reach beyond India. Bahrain could also be considered by Indian start-ups for getting the next round of funding.
What is the purpose of your visit to India?
Our role is to really encourage Indian companies to expand beyond India, to take advantage of market opportunities and use Bahrain to gain access to new markets in Saudi Arabia, United Arab Emirates (UAE) and across GCC. So, our role is basically to make Indian companies expand.
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What advantages does Bahrain give for Indian companies to set up base there than, say, Dubai?
Bahrain is an open economy. It is the freest economy in the whole of the main region. You don't need to have a local partner; you can have wholly-owned businesses in many different sectors. Bahrain has no tax. It has no income tax, no sales tax, no tax on investments, and no corporate tax. And, there is government support for those businesses that are going to create employment in Bahrain.
Which areas are Indian companies currently present in Bahrain?
We have a number of Indian companies in Bahrain, some of whom for decades. We need to do more to promote Bahrain. Dubai, UAE have been very successful in attracting a wide variety of Indian companies. We feel that perhaps some of the opportunities in Bahrain have not been communicated by us as they should have been done. We need to change that. We're trying to communicate facts that companies can access, particularly Saudi Arabia, very effectively from Bahrain.
What about those companies that have already set up base in Dubai and other GCC countries?
For companies which have already been established in Dubai, it makes sense to them to consider Bahrain when they are expanding. According to a KPMG report, some manufacturing costs are 40 per cent lower in Bahrain than in UAE.
Which are the areas where Indian companies can expand in Bahrain?
Bahrain has a very large aluminum smelting industry. So, there are large opportunities for downstream aluminum manufacturing industries. We have been working with Indian firms that are looking at setting up small-scale manufacturing or distribution outlets to serve that market. The new opportunity we feel is tourism. We like to encourage Indian hotels and Indian destination marketing companies to tap that sector. We get 30 million visitors. We think there is a scope to reach out to Indian visitors.
How has decline in oil prices affected Bahrain's economy?
Even prior to the drop in oil prices, Bahrain was trying to diversify. The drop in oil prices has given the government more incentives to do so. So, we're focusing on tourism, the financial sector and ICT (information and communications technology).
How can Indian companies tap the financial sector and ICT markets in Bahrain?
We already have a number of Indian banks. But, we're also looking at start-ups in India. There could be an Indian start-up that has reached a particular point, now looking to expand its reach beyond India. Bahrain could also be considered by Indian start-ups for getting the next round of funding.