GCC INFO
Located in the Persian Gulf region, The GCC Nations (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates) are among the fastest-growing, most dynamic economies in the world. The oil and gas sector accounts for a significant portion of the GDP in each of the countries, however in recent years, they have been expanding the range of industries and sectors within their economies by investing considerably in non-oil sectors, such as healthcare, education, tourism, and technology.
With a firm commitment to pursue a comprehensive strategy of economic diversification and transitioning to carbon-neutral economies, they are intented to place particular emphasis on developing sustainable and knowledge-based industries.
The GCC Nations are actively working towards greater regional integration, with initiatives such as the Gulf Cooperation Council Customs Union and the Gulf Common Market to create a more seamless and efficient business environment within the region.
Similarly to the European Union, the GCC Nations have therefore implemented a uniform product authorization procedure, making it easier for businesses to navigate the regulatory landscape in the region. This procedure aims to ensure that products meet the necessary safety, health, and environmental requirements, while also simplifying the process of selling goods in the region.
Bahrain
Bahrain boasts a diversified, growing economy with a focus on developing key sectors such as financial services, manufacturing and tourism, as well as improving infrastructure and transportation systems.
Recent market trends in Bahrain show a significant growth in the technology sector with many startups and innovation centers emerging in the country. The country’s main economic objectives include achieving sustainable economic growth, diversifying the economy, and reducing dependence on oil revenues.
Bahrain has a favorable geographic location that offers easy access to the larger Gulf Cooperation Council (GCC) market, making it a strategic hub for businesses. With a stable political environment and a supportive regulatory framework, law taxes and a skilled workforce, Bahrain is committed to attracting foreign investment and support entrepreneurship.
The country has implemented a streamlined and efficient process for registering and licensing businesses, which includes online portals and a one-stop-shop for company registration. Additionally, the Bahrain Economic Development Board provides support to businesses throughout the entire process, from initial setup to ongoing operations.
Kuwait
Kuwait’s economy is heavily reliant on oil exports, which account for around 60% of its GDP. The New Kuwait Vision 2035 aims to diversify the economy by investing in key sectors such as healthcare, education, renewable energy, and reduce dependence on oil revenues.
The current government has implemented various initiatives to improve the business climate, support startups and entrepreneurship, including launching an e-government platform to streamline procedures and reduce bureaucracy.
One of the most notable programs is the establishment of the Kuwait National Fund for SME’s Development, which provides financial support and technical assistance to small and medium-sized enterprises. Kuwait offers a favorable business environment, characterized by a strategic location, a highly skilled workforce, and robust infrastructure.
Oman
In recent years, Oman has faced economic challenges due to declining oil prices and production. The current government is working towards diversifying the economy by investing in sectors such as tourism, fisheries, and logistics.
In addition to the growing focus on renewable energy, Oman has also been exploring the potential of developing its mining and minerals sector, particularly in copper, chromite, and gypsum.
The country has implemented various measures to support foreign entrepreneurship, including offering tax incentives, providing access to financing, and creating a more business-friendly environment by making efforts to reduce bureaucracy and streamline business registration procedures.
Qatar
Qatar has a high-income economy and one of the fastest-growing economies in the world. The country has significant oil and gas reserves, and the government is actively working to diversify the economy and reduce reliance on hydrocarbon exports.
The latest market trends show continued growth in the finance, construction and tourism sectors. Having hosted the 2022 FIFA World Cup has spurred significant infrastructure development and investment in the country.
Qatar presents a business-friendly environment with a streamlined regulatory system, offering incentives such as tax exemptions, land grants and free zones to encourage international businesses to set up operations in the country.
Saudi Arabia
Saudi Arabia’s stock market (Tadawul) in recent years has been one of the best-performing markets in the world. The government has undertaken major economic reforms to diversify its economy and reduce its reliance on oil (approximately 40% of the country’s GDP), developing new sectors such as tourism and entertainment.
One of the most significant initiatives in this regard is the Vision 2030 plan, which aims to transform Saudi Arabia into a global investment powerhouse and a hub connecting three continents – Asia, Europe, and Africa.
Saudi Arabia offers a highly-skilled workforce and has introduced several initiatives aimed at promoting entrepreneurship, including the establishment of several entrepreneurship centers, the launch of various funding programs and the introduction of streamlining procedures.
United Arab Emirates
The United Arab Emirates (UAE) has a highly diversified and open economy with a well-developed infrastructure and advanced technology. While the oil and gas sector still plays a significant role in driving economic growth, the country has made significant efforts to diversify its economy and reduce its dependence on oil.
In recent years UAE has set ambitious goals to develop a knowledge-based economy with a focus on several key sectors, such as renewable energy, technology, tourism, and healthcare.
The country offers several advantages for businesses, such as a strategic location, various free zones, a favorable tax environment and a highly skilled workforce. The government has taken steps to promote entrepreneurship and innovation through the establishment of various innovation centers, incubators, and accelerators.