Despite its five thousand year history, US allied Bahrain is an ?emerging? nation and has been in a significant state of transition since the current king and former amir of Bahrain Sheikh Hamad bin Isa Al Khalifa came to power in 1999 and it?s critical that any investor examining the property market prospects in Bahrain for profit potential in 2007 and beyond understands the nature of the development of the country before they consider committing to it.
While the current period of transition now means that Bahrain has become one of the most prosperous and attractive nations in the Gulf region in which to live, work, invest and prosper, it?s rapidly expanding economy and significant political changes have created an underlying feeling of destabilisation among certain factions of the local population.
While generally speaking Bahrain?s property market prospects for 2007 are very positive indeed and this article covers the positive prospects for the market, it also details the underlying problems that could undermine the short term attractiveness of the country?s real estate sector so that investors can make as informed a decision as possible about market entry and investment commitment.
Since the current king of Bahrain came to power his nation has made incredible progress?on the political front Bahrain is now allied with the likes of the USA and UK, it has a free trade agreement in place with America, it has open elections and in 2006 the first ever female parliamentarian in any Arab Gulf country was elected into office in Bahrain. On the economic front the king of Bahrain has been key to the transition of his nation away from its economic dependence on oil and going forward into 2007 and beyond, Bahrain has a strong economy with very positive annual GDP growth rates.
All of these factors have indirectly started a property market revolution which is largely fuelled by international citizens moving in greater numbers to Bahrain to live and work. The reason for this is that Bahrain is located in an important strategic position in the Gulf and has taken it upon itself to be the nation offering least resistance to multinational businesses requiring a physical presence in the region. As a result of attractive legislation, transparent business practices and a low/no tax policy, Bahrain has succeeded in attracting large numbers of international and multinational corporations to its shores who each require a base in the Gulf region and who each recruit large numbers of international expatriates who are now moving to live in Bahrain.
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