Bahrain scores high in cost-effective supply chains

Bahrain’s Al Hidd has been ranked first globally in the ‘Transport and Warehousing Cost-Effectiveness’ category by fDi Intelligence.

FDi, the Intelligence division of the Financial Times, examined a range of data points including the cost of construction permits, fuel prices, electricity prices, and tax rates amongst others.

Egypt’s Port Said and Damietta as well as Dubai and Abu Dhabi were included in the top 10. Bahrain and the UAE also ranked in the top 10 for the Economic Potential category. The top ranking for cities overall was awarded to Hong Kong, with Dubai and Abu Dhabi at fourth and sixth place respectively.

Strategically located, Bahrain has earned a reputation as a key regional transport and logistics hub and is fast emerging as a major distribution and fulfilment centre hub. Covid-19 has accelerated the uptake of technology in the country’s logistics sector, including the launch of a “SmartHub” logistics warehouse for pharmaceuticals and food in Bahrain to serve the GCC market.

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Bahrain is also one of the region’s most cost-effective distribution hubs. According to the KPMG Cost of Doing Business Report 2019, Bahrain offers up to 43 per cent operational costs savings, and 33 per cent savings in living costs when compared to the region, as well as zero corporate and income tax and no free zone restrictions.

“Bahrain has long prided itself in offering the many global manufacturing and logistics players a place to call home with some of the most competitive setup and operating costs in the GCC,” said Bahrain’s Minister of Transportation and Telecommunications Kamal bin Ahmed Mohammed. “We are therefore delighted that Al Hidd City has been ranked so highly by fDi Intelligence for cost-effectiveness in the Transport and Warehousing sectors – a testament to the Kingdom’s reputation as the region’s de facto transport and logistics hub.”

The minister noted that despite the challenges posed by Covid-19, Bahrain was able to register a 13.5 per cent year-on-year surge of shipments into Khalifa Bin Salman port in the first nine months of 2020. “In 2021, we look forward to building on the successes of 2020, and welcoming many more global transport and logistics players seeking an efficient and cost-competitive gateway to the region’s largest market and beyond,” Mohammed added.