Are you looking to take your business to the next level? Perhaps you’ve contemplated expanding your operations beyond the borders of your home country. The idea of starting a business in a foreign land might sound daunting, but it’s a path that more entrepreneurs are exploring. Industry experts mentioned that starting a business overseas might actually be much easier, less risky, and more economically sound than setting up a business in your home country. So, if you’re considering international expansion, let’s dive into some key insights and the industries that are thriving in foreign markets.
Expanding your business internationally means delving into an entirely new environment. It’s crucial to comprehend the industry dynamics and market expectations in your target country. Here are some questions to ponder when entering foreign markets:
- Technology and Innovation: In today’s global landscape, technology and innovation reign supreme. Businesses that leverage cutting-edge solutions often find themselves on the path to success. Bahrain, for instance, has witnessed remarkable growth in its technology and innovation sector. The region’s cybersecurity industry is projected to achieve a staggering 20% Compound Annual Growth Rate (CAGR) by 2022. Moreover, Bahrain boasts the world’s highest cloud traffic growth rate at 41%. These factors have attracted industry giants like Amazon Web Services (AWS) to establish their presence here, underlining Bahrain’s commitment to fostering tech innovation.
- Logistics: In a world that’s more connected than ever, efficient supply chains are the backbone of successful enterprises. Bahrain’s strategic location in the Gulf region offers seamless access to major markets, including neighboring Saudi Arabia. What’s more, operating costs for logistics companies in Bahrain are 30–50% lower than in nearby countries. This unique advantage has lured companies like DHL, a global logistics leader, to thrive in Bahrain’s business ecosystem. DHL benefits from a highly skilled workforce, favorable regulations (including 0% corporate tax), and a strategic position that facilitates market access. According to a report, “Bahrain provides DHL with many reasons for success, but the following are of the most important. The workforce in Bahrain is prepared for logistics, manufacturing, and many more industries and provides unparalleled market access to customers.”
- Manufacturing: The manufacturing sector remains at the core of numerous industries. Companies that create innovative products will always find their niche. Bahrain, with its Free Trade Agreements (FTAs), business-friendly atmosphere, and 0% corporate tax rate, emerges as an enticing destination for manufacturing ventures. Mondelez International, a prominent player in snack product manufacturing, has called Bahrain home since 2008. Mondelez benefits from Bahrain’s strategic location, including the US-Bahrain Free Trade Agreement, which grants access to American markets without tariffs. Additionally, proximity to the Saudi Arabian market has been a game-changer for the company. Bahrain’s skilled workforce further supports its success.
Navigating the Terrain of International Expansion
Expanding your business to foreign shores entails more than just choosing the right industry; it requires a deep understanding of the new business environment. Here are some critical aspects to consider:
- Regulations: Each country has its unique set of regulations encompassing taxation, immigration, finance, and employment. Comprehending and complying with these regulations is paramount for a smooth transition. Take Bahrain, for example, which has its own set of business laws that businesses must navigate.
- Culture and Politics: Local culture and political dynamics play a pivotal role in business interactions. Understanding these nuances is vital, as they can significantly impact your success. Even seemingly small gestures like handshakes and gifts can carry diverse meanings in different cultures.
- Economics and Taxation: Familiarize yourself with the economic landscape of your target country. Understand current economic conditions, future trends, local spending habits, economic regulations, and tax incentives. Tax laws, in particular, can have a profound impact on your business operations. Bahrain, with its 0% corporate tax rate, is a tax-friendly destination for businesses.
- Local Advocates: Embarking on an international business venture doesn’t mean you have to go it alone. Seek out a local advocate who understands the intricacies of setting up a business in the new country. In Bahrain, our team can serve as your local business advocate, guiding you through the entire process.
Many businesses have discovered unparalleled success in Bahrain. The kingdom offers a complete package for enterprises seeking to expand abroad, with its business-friendly environment and exceptional market access. You don’t have to navigate this journey by yourself. Reach out to us to learn more about setting up or expanding your business in Bahrain, and let’s explore new horizons together.