Published on and written by Cyril Jarnias
Bahrain, a small archipelago in the Persian Gulf, has become a prime destination for foreign entrepreneurs and investors in recent years. With its dynamic economy, favorable tax system, and strategic location, the kingdom offers numerous opportunities for establishing your business. Whether you’re looking for commercial space, an office, or a warehouse, here is a comprehensive guide to finding the professional property that meets your needs in Bahrain.
Best Strategies for Finding Your Professional Space
To find the ideal space for your business in Bahrain, several options are available:
Hire a specialized real estate agency: This is often the most effective and quickest way to find a property matching your criteria. Agencies have excellent knowledge of the local market and can save you valuable time in your search.
Check online listing sites: Numerous Bahraini real estate portals like Property Finder or Weetas are filled with professional rental offers. You can conduct targeted searches based on your criteria (property type, area, location, budget).
Prospect directly on-site: By visiting the business areas that interest you, you can spot vacant spaces and contact owners directly. This method requires more time but can help you find good opportunities.
Contact the Bahrain Economic Development Board: This government agency can assist you with your procedures and connect you with professional property owners.
Leverage your professional network: Word-of-mouth works very well in Bahrain. Don’t hesitate to reach out to your local contacts for recommendations.
Good to know:
Prioritize free zones like the Bahrain International Investment Park which offer tax benefits and quality infrastructure for foreign businesses.
Key Players in Bahraini Commercial Real Estate
Several reputable real estate agencies can assist you in your search for professional space in Bahrain:
- CBRE Bahrain: Global leader in commercial real estate, present in Bahrain for many years
- Cluttons Bahrain: British agency specialized in high-end and professional real estate
- Savills Bahrain: Another major international player with sharp expertise in the Bahraini market
- Century 21 Bahrain: International network of real estate agencies well-established locally
- Bahrain Property World: Local agency renowned for its in-depth market knowledge
These agencies typically have a wide portfolio of professional properties for rent and sale. They can advise you on the best opportunities based on your business activity and budget.
Don’t hesitate to contact multiple agencies to compare offers and get a precise idea of the market. Most offer comprehensive support services, from property search to lease signing.
Good to know:
Some agencies like CBRE or Cluttons regularly publish reports on the Bahraini real estate market, a goldmine of information for understanding trends and prices.
Building a Solid File: Essential Documents
To rent professional space in Bahrain, you’ll need to provide several documents to the owner or real estate agency. Prepare a complete file including:
- A copy of the Commercial Registration (CR)
- Company bylaws
- Latest financial statements
- A bank solvency certificate
- A copy of the manager’s passport
- A detailed business plan (for new businesses)
- A copy of company registration documents from its country of origin
- A letter of intent detailing the establishment project
- International bank references
- A detailed business plan
- A copy of the legal representative’s passport
- A precise description of the planned activity in the space
- Professional references
- A professional insurance certificate
The more complete and solid your file, the better your chances of convincing the owner and obtaining the desired space. Don’t hesitate to hire a local lawyer to ensure your file complies with Bahraini regulations.
Good to know:
Most commercial leases in Bahrain are drafted in English and Arabic. Get assistance from a professional translator if needed to fully understand all contract terms.
The Bottom Line: How Much Does Professional Space Rental Cost?
Rental prices for professional spaces in Bahrain vary considerably depending on property type, location, and characteristics. Here are some approximate ranges for reference:
- Premium area (Diplomatic Area, Seef District): 12-18 BHD/m²/month
- Intermediate area (Sanabis, Tubli): 7-11 BHD/m²/month
- Economic area (Sitra, A’ali): 4-6 BHD/m²/month
- Prime location (Manama City Center, Seef Mall): 20-30 BHD/m²/month
- Secondary location: 10-15 BHD/m²/month
- Modern industrial zone: 3-5 BHD/m²/month
- Standard industrial zone: 1.5-3 BHD/m²/month
- A security deposit equivalent to 2-3 months’ rent
- Common charges (maintenance, security, etc.): 10-15% of rent
- Agency fees when applicable: 5-10% of annual rent
The standard duration for commercial leases in Bahrain is 3 years, but it’s possible to negotiate shorter or longer terms based on your needs.
Good to know:
Rent is typically payable quarterly in advance. Some landlords may require a bank guarantee in addition to the security deposit.
Bahraini Cities for Cost-Effective Establishment
If you’re looking for more affordable rents for your business, certain cities and areas in Bahrain offer interesting opportunities:
Sitra: This island southeast of Manama hosts a major industrial zone with attractive rents for warehouses and business premises.
A’ali: This rapidly developing city in central Bahrain offers offices and commercial spaces at competitive prices.
Riffa: The country’s second-largest city, Riffa offers a good compromise between accessibility and moderate costs, particularly for offices.
Hamad Town: This planned new town features modern infrastructure and business areas at advantageous rates.
Hidd: Located on Muharraq Island, this booming industrial area offers business premises and warehouses at attractive prices.
These cities generally benefit from good road connections with Manama and the country’s main business areas. They can be an interesting alternative for businesses looking to optimize their real estate costs.
Good to know:
The Bahraini government encourages business establishment in these peripheral areas by developing modern infrastructure and offering tax incentives.
A Welcome Boost: Rental Assistance for Businesses
To attract foreign investors and support economic development, the Bahraini government has implemented several business establishment assistance programs:
The “Business Incubators” program: Managed by the Bahrain Development Bank, it offers reduced-rent office spaces for startups and SMEs during their first years of operation.
Free zones: The Bahrain International Investment Park and Bahrain Logistics Zone offer professional spaces at preferential rates, along with tax benefits.
The “SME Rent Relief” program: Launched in 2020 to support SMEs during the health crisis, this program can cover up to 50% of rent for 3 months (under certain conditions).
Tamkeen subsidies: This public organization offers financial assistance to Bahraini businesses, which can notably be used to cover part of rental costs.
Public-private partnerships: Some real estate projects developed in partnership with the state offer favorable conditions for business establishment in strategic sectors.
To benefit from these aids, it’s recommended to contact the Bahrain Economic Development Board who can direct you to the programs best suited to your situation.
Good to know:
Some municipalities also offer local incentives to attract businesses, such as temporary property tax exemptions or assistance with space fitting-out.
Conclusion: Bahrain, a Land of Opportunities for Your Establishment
Finding the ideal professional space for your business in Bahrain may seem complex, but with the right resources and proper support, it can be a quick and effective process. The kingdom offers a wide diversity of options, from high-end offices in Manama’s diplomatic quarter to modern warehouses in peripheral industrial zones.
The key to success lies in good preparation: precisely define your needs, build a solid file, and don’t hesitate to enlist local professionals to guide you. The numerous aids and incentives offered by the Bahraini government can also help you significantly reduce your establishment costs.
With its dynamic economy, strategic position, and regulatory framework favorable to foreign businesses, Bahrain stands out as a prime destination to develop your activity in the Gulf. Whether you’re targeting the local market or seeking a base to expand throughout the region, you’ll find in Bahrain the professional space that will allow you to realize your ambitions.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
