Bahrain Economy Profile - Doing Business 2019
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Doing Business 2019 Bahrain
Economy Profile
Bahrain
Page 1
Doing Business 2019 Bahrain
Economy Profile of Bahrain
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Bahrain
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Bahrain
Ease of Doing Business in
Region Middle East & North Africa DB 2019 Rank
190 1
Bahrain
Income Category High income 62
DB 2019 Ease of doing business score
Population 1,492,584
0 100
City Covered Manama 69.85
DB 2019 Ease of Doing Business Score
0 100
69.85: Bahrain (Rank: 62)
67.19: Oman (Rank: 78)
65.89: Qatar (Rank: 83)
62.20: Kuwait (Rank: 97)
58.30: Regional Average (Middle East & North Africa)
56.98: Iran, Islamic Rep. (Rank: 128)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Bahrain
5
1
26
28 38
57
55 66
77
82
82 93
Rank
112
109
128
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Bahrain
100 93.89
89.57
81.07
77.77
80 73.40 74.82
66.67
Score
60
51.75
45.00 44.57
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Bahrain
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Bahrain
Starting a Business - Bahrain
Standardized Company
Legal form With Limited Liability (WLL)
Paid-in minimum capital requirement BHD 250
City Covered Manama
Indicator Bahrain Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 6 7.2 4.9 1 (New Zealand)
Time – Men (days) 8 20.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 1.1 22.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 7 7.9 4.9 1 (New Zealand)
Time – Women (days) 9 21.2 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 1.1 22.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 3.1 8.1 8.6 0.0 (117 Economies)
Figure – Starting a Business in Bahrain and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
92.89: Oman (Rank: 37)
89.57: Bahrain (Rank: 66)
87.67: Qatar (Rank: 84)
82.00: Regional Average (Middle East & North Africa)
81.40: Kuwait (Rank: 133)
67.79: Iran, Islamic Rep. (Rank: 173)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Bahrain
Figure – Starting a Business in Bahrain – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
9 0.7
8
0.6
Cost (% of income per capita)
7
0.5
6
Time (days)
5 0.4
4 0.3
3
0.2
2
0.1
1
0 0
1 2 3 4 5 6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Bahrain
Details – Starting a Business in Bahrain – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 APPLIES TO WOMEN ONLY: Obtain husband's approval to leave home 1 day no charge
Agency : Domicile
According to Family Law a married woman will not be entitled to alimony if she
leaves the residency without permission of husband or for non-permitted
purposes.
2 Draft standard Memorandum of Association and obtain preliminary 1 day no charge
approval from the Ministry of Commerce
Agency : Commercial Registration Portal
The entrepreneur obtains preliminary approval from the Ministry of Commerce by
presenting the required documents to the Commercial Registration Portal at
https://www.sijilat.bh/.
The required documents are:
(1) Certificate of Incorporation
(2) Draft Memorandum of Association.
(3) Board of directors resolution resolving to establish the company in Bahrain
(for corporate partners).
(4) National ID card (Central Population Registry (CPR)) copies of the company's
representatives. If the partners are not present themselves to register the
company, copies of the ID cards of their lawyers/other representatives must be
provided.
(5) Lease agreement as proof of the company's commercial address.
(6) Last audited financial report of corporate partners.
3 Obtain lease approval from the Municipality 3 days BHD 10
Agency : Commercial Registration Portal
The lease agreement is required to obtain preliminary approval from the
Municipality. If the entrepreneur decides to use the services of an attorney, it is
common practice to use the address of the law firm until a lease is obtained
within 3 months. Corporate offices can only be established in buildings with a
commercial license (not residential). Once the lease is signed with the landlord
on official documents, the contract can then be submitted on the website of the
Commercial Registration Portal (www.sijilat.bh/).
The location of the company must be approved by the Municipality. A visit to the
relevant Municipality is required to finalize the lease approval.
4 Notarize Memorandum of Association 1 day BHD 27
Agency : Notary
Once the registration approval has been obtained from the Ministry of Commerce
and the Municipality, the Memorandum of Association must be notarized by a
notary public. A notary is available at the Ministry of Justice booth at the BIC one-
stop shop.
5 Open an account at the bank and obtain proof of deposit of capital 1 day no charge
Agency : Bank
The capital has to be deposited in an account at a commercial bank and proof of
deposit must be obtained. Commercial bank branches are available at the BIC
one-stop-shop.
6 Obtain Certificate of Registration from Ministry of Commerce 1 day BHD 50
Agency : Bahrain Investment Center (BIC) one-stop shop at Ministry of Industry
and Commerce
Once the municipality has given its approval, a capital deposit certificate has
been issued by the bank, and the memorandum of association has been
notarized, the entrepreneur returns to the Ministry of Commerce to obtain the
Certificate of Registration (CR) from the Bahrain Investment Center one-stop-
shop. The certificate of registration can also be obtained online.
7 Register the company and employees with the General Organisation for 1 day no charge
Social Insurance (GOSI)
Agency : General Organisation for Social Insurance
The documents required for registration are:
(1) Copy of employer’s Central Population Registry (CPR)
(2) Copy of the Certificate of Registration (CR)
(3) Copy of company contract
Applies to women only.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Bahrain
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Bahrain
Dealing with Construction Permits - Bahrain
Standardized Warehouse
Estimated value of warehouse BHD 401,644.80
City Covered Manama
Indicator Bahrain Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 11 16.6 12.7 None in 2017/18
Time (days) 174 137.4 153.1 None in 2017/18
Cost (% of warehouse value) 3.9 4.7 1.5 None in 2017/18
Building quality control index (0-15) 12.0 12.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Bahrain and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
79.16: Qatar (Rank: 20)
73.40: Bahrain (Rank: 57)
72.05: Oman (Rank: 66)
69.11: Iran, Islamic Rep. (Rank: 86)
62.35: Kuwait (Rank: 131)
59.17: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Bahrain – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
4
160
3.5
Cost (% of warehouse value)
140
3
120
Time (days)
2.5
100
2
80
1.5
60
40 1
20 0.5
0 0
1 2 3 *4 5 6 7 8 9 10 * 11
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Bahrain
Figure – Dealing with Construction Permits in Bahrain and comparator economies – Measure of Quality
15
12.5 13.0
12.0 12.0 12.1
11.0
Index score
10
5
0
Bahrain Iran, Islamic Rep. Kuwait Oman Qatar Middle East & North Africa
Details – Dealing with Construction Permits in Bahrain – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Hire an external certified consultant to obtain the building permit and 1 day BHD 15,000
supervise construction
Agency : Private Firm
BuildCo must hire an external consultant office (licensed and registered) to
design the project, obtain for a building permit and supervise the project.
2 Obtain inquiry information certificate 16 days BHD 30
Agency : Municipality
BuildCo must first create an account on the Municipality's website. BuildCo would
then check the zoning of the building online by entering the parcel number on the
Municipality's website. The following documents must be presented to obtain the
inquiry information certificate:
• Title deed including plot map, air map and site plan
• Survey certificate
• Copy of BuildCo's commercial registration
• Architectural drawings (if available)
• Professions practice certificate of the consultant
The application would then be reviewed by the municipal engineer along with the
Urban Planning Directorate and the Roads Directorate.
3 Obtain a Road Level Certificate 28 days no charge
Agency : Road Planning & Design Directorate
A road level certificate is necessary to get required road level information prior to
the start of the construction.
This request can be made online:
https://www.works.gov.bh/English/Services/ways/Pages/RoadLevel/Default.aspx
4 Obtain a land survey from a private consultant 2 days BHD 80
Agency : Private consultant
A private consultant can be hired to provide this service. The surveyor puts the
beacons and draws an electronic map of the land. The government plans to
undertake reforms in this area, in particular with regards to fee structure and
approval process.
Page 11Doing Business 2019 Bahrain
5 Obtain final building permit 90 days BHD 529
Agency : Municipality
The engineering consultant submits the detailed drawings and required
documents to obtain the final building permit. The required documents are:
• Copy of ownership document (title deed)
• Detailed drawings
• Land survey certificate
• Professions Practice Certificate proving engineer/architect is licensed
• Letter from consultant assuming liability
• Copy of identity cards
• Approval of Electricity Directorate
The company making the detailed drawings must be licensed by the Committee
for Organizing Engineering Professionals Practice. The company gets licensed
on an annual basis. The cost of this annual license depends on the number of
engineers/architects employed by the firm and the category in which it is
licensed. To build a warehouse, it is at least a Category C license. The cost of
this license for the construction company is approximately BHD 95.00 x 2 = BHD
190.00 and BHD 30.00 per engineer/architect.
BuildCo must pay the following fees:
1. Permit fees = Build up area in sq. m. x BHD 0.35
2. Permit insurance (refundable after construction) = Build up area in sq. m. x
BHD 0.50
3. Sign board fees = BHD 50.00
4. Sign board insurance (refundable after construction) = BHD 164.00
5. Garbage and Debris Container = BHD 15.00
6. Cost of Stamps = BHD 9.00
All compulsory forms for inspections are now submitted at the same time as the
request for a building permit.
The one-stop shop (OSS) introduced a single application form in December 2008
that replaced the 9 separate application forms and 15 different pieces of
supporting documentation. This facilitated the online submission process of
applications tremendously. Applicants now fill out a single application form online
and upload all their documents and plans through a completely digitized process.
Their application file gets forwarded to the various departments in the OSS who
review it in parallel.
Also since 2008, the approval from the Electricity Directorate is done conjointly
with the inquiry information certificate. Applicants apply for this certificate and the
one-stop shop communicates the request and obtains the approval directly from
the Electricity Directorate.
6 Request and receive final inspection from Civil Defense 1 day no charge
Agency : Civil Defense
According to Article 75 of the Building Regulations: "It is allowed to construct
linked or semi-linked stores and warehouses, on condition that the approval of
civil defense is obtained with respect to the specifications of the emergency exits,
gathering points and other of the security and safety requirements in emergency
cases such as fire with noticing the easiness of movement among the stores'
groups."
7 Receive final inspection from the Municipality 1 day no charge
Agency : Municipality
Upon completion of construction, an inspection from the Municipality is required.
8 Obtain certificate of completion from the Muncipality 4 days BHD 39
Agency : Municipality
After the inspection, the certificate of completion is obtained with which the power
connection can be installed.
9 Obtain an Address Certificate 2 days BHD 1
Agency : Central Information Organization (CIO)
The Address Cards are usually issued by the CIO - Central Information
Organization based on Municipal list. It is usually issued before completion and
final connection of power and services. The following documents must be
submitted to obtain the Address Cards: the building permit, stamped drawings
and municipal list have to fully match before the Address Cards are issued.
10 Obtain water connection 30 days BHD 25
Agency : Ministry of Water and Electricity - Water Distribution Directorate
BuildCo obtains the water connection through the one-stop shop during the
building permit approval process. Cost is BHD 25.00 for a 1/2 inch connection.
Page 12Doing Business 2019 Bahrain
Obtain sewage connection 30 days BHD 150
11 Agency : Ministry of Works - Sewage Planning Directorate
If construction is in a pre-zoned area of the city, there is already a planned
manhole provision. The construction company can connect directly.
Documents required for the sewage connection are:
• Land deed/certificate of survey (if available) obtained from the Land
Registration Ministry of Justice & Islamic Affairs/Survey Land Registration
Bureau
• Site location plan obtained from the Ministry of Municipalities & Agriculture
• Layout plan which shows all the proposed internal plumbing and drainage
obtained from Consulting Office/Owner
• Copy of the CPR card obtained from Central Statistics
• Copy of the address card obtained from Ministry of Municipalities & Agriculture
• Copy of the building permit (if issued before consulting SEPPD) obtained from
the Ministry of Municipalities & Agriculture
• Sewer connection application form obtained from Sanitary Engineering
Planning & Projects Directorate (SEPPD)
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Bahrain
Details – Dealing with Construction Permits in Bahrain – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge;
In official gazette.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer; Private
firm.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Inspections by
external engineer
or firm;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice;
Inspections are
not mandated by
law but
commonly occur
in practice during
construction.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 3.0
Page 14Doing Business 2019 Bahrain
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 15Doing Business 2019 Bahrain
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
kilowatt (kW).
• Does not include time spent gathering
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 Bahrain
Getting Electricity - Bahrain
Standardized Connection
Price of electricity (US cents per kWh) 4.8
Name of utility Ministry of Electricity and Water (MEW) (Electricity Distribution
Directorate, EDD at the MEW)
City Covered Manama
Indicator Bahrain Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 5 4.7 4.5 3 (25 Economies)
Time (days) 85 72.4 77.2 18 (3 Economies)
Cost (% of income per capita) 61 479.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 5 4.2 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Bahrain and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
79.34: Oman (Rank: 66)
78.59: Qatar (Rank: 69)
74.82: Bahrain (Rank: 82)
71.78: Kuwait (Rank: 95)
69.45: Regional Average (Middle East & North Africa)
68.86: Iran, Islamic Rep. (Rank: 108)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 Bahrain
Figure – Getting Electricity in Bahrain – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
70
80
60
Cost (% of income per capita)
70
60 50
Time (days)
50 40
40
30
30
20
20
10
10
0 0
1 *2 3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Bahrain and comparator economies – Measure of Quality
8
7
7
6
6
Index score
5 5 5
5
4.2
4
3
2
1
0
Bahrain Iran, Islamic Rep. Kuwait Oman Qatar Middle East & North Africa
Page 18Doing Business 2019 Bahrain
Details – Getting Electricity in Bahrain – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Electricity Distribution Directorate and await external 18 calendar days BHD 0
inspection
Agency : Electrical contractor licensed by the Electricity and Water Authority
The client needs to first hire an electrical contractor licensed with the Ministry of
Electricity and Water. There are different grades for electricians depending on
the type of installations.
The applicant fills out an application form and submits it to the utility, namely the
Electricity Distribution Directorate, EDD (at the Ministry of Electricity and Water).
The following documents should be attached to the application form:
• copy of ID card or passport;
• copy of the commercial register;
• copy of building permit certificate;
• copy of address specifying card;
• ownership deed;
• certificate of completion of the building from the local municipality; and
• description summary of the project with the projected load details
2 Obtain external inspection by Electricity Distribution Directorate 1 calendar day BHD 0
Agency : Electricity and Water Authority
The client needs to then wait for the utility conduct the site inspection.
3 Obtain external works from Electricity Distribution Directorate’s contractor 60 calendar days BHD 4,900
Agency : Electricity and Water Authority
The utility assigns a contractor to be in charge of the external works and obtains
the excavation permit through its online application system. The contractor then
inspects the site to determine the specifics of the connection and prepares an
estimate of the connection fees.
The contractor will lay out cables from the warehouse to the closest substation.
4 Obtain internal wiring inspection by Electricity Distribution Directorate 1 calendar day BHD 0
Agency : Electricity and Water Authority
The Inspection Department of EDD will conduct a site inspection to verify the
compliance of the internal wiring with the existing regulations. The inspector will
then fill out an Electrical Installation Completion & Test Certificate form.
5 Obtain meter installation and final connection by Electricity Distribution 7 calendar days BHD 0
Directorate
Agency : Electricity and Water Authority
When the external works are completed, the meter will be installed by the Supply
Department of EDD. At that time, the client is required to present the Electrical
Installation Completion certificate obtained in procedure 4.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Bahrain
Details – Getting Electricity in Bahrain – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 5
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.6
System average interruption frequency index (SAIFI) 0.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.mew.gov.
bh/default.asp?
action=category&id=
40
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Bahrain
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Bahrain
Registering Property - Bahrain
Indicator Bahrain Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 2 5.6 4.7 1 (4 Economies)
Time (days) 31 29.7 20.1 1 (New Zealand)
Cost (% of property value) 1.7 5.7 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 17.5 14.2 23.0 None in 2017/18
Figure – Registering Property in Bahrain and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
83.27: Qatar (Rank: 20)
81.07: Bahrain (Rank: 26)
74.03: Oman (Rank: 52)
67.54: Kuwait (Rank: 69)
63.98: Iran, Islamic Rep. (Rank: 90)
62.11: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Bahrain – Procedure, Time and Cost
Time (days) Cost (% of property value)
1.8
30
1.6
Cost (% of property value)
25
1.4
1.2
20
Time (days)
1
15
0.8
10 0.6
0.4
5
0.2
0 0
1 2
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Bahrain
Figure – Registering Property in Bahrain and comparator economies – Measure of Quality
30
24.5
25
Index score
20 17.5 17.0
15.0 14.2
15 13.5
10
5
0
Bahrain Iran, Islamic Rep. Kuwait Oman Qatar Middle East & North Africa
Details – Registering Property in Bahrain – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Notarize the sale agreement/contract with the Ministry of Justice Notary at 1 day BHD 15; (for 4
the Survey & Land Registration Bureau. notarized copies of
Agency : Ministry of Justice notary (sitting at the Survey and Land registration the Sale of Purchase
Bureau)
Agreement)
The seller and purchaser of the property (or their legal representatives) must
appear at the notary from the Ministry of Justice (sitting at the Survey and Land
registration Bureau) to sign the Sale of Purchase Agreement. The original title
deed evidencing that the seller has ownership of the property must be shown to
the notary at the time of signing the Sale of Purchase Agreement.
2 Register the title deed with the purchaser's name at the Survey & Land 30 days BHD 6,828.96; (1.7%
Registration Bureau of property value
Agency : Survey & Land Registration Bureau Within 60 Days from
After the Sale of Property Agreement has been notarized, the following
selling agreement
documents are submitted to the Survey and Land Registration Bureau:
(Discounted Value
(1) 1 notarized Sale of Property Agreement;
(2) Valid Commercial Registration Certificate of the Purchaser; including the 15%
(3) Memorandum of Association and amendments (if any) discount for
(4) Payment to the Survey and Land Registration Bureau (fee BD 1) for the land applications
registration form submitted within 60
days of execution of
Law No. 13 of 2013 Property Registration Law ("New Law") established new the sale agreement).
registration fees. The New Law set a flat registration fee of 2% on all property
2% of property value
sales regardless of the purchase price (15% discount of the registration fee for
after 60 Days
applications submitted within 60 days of execution of sale agreement).
1 BD for the Land
Registration Form)
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 Bahrain
Details – Registering Property in Bahrain – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 6.0
What is the institution in charge of immovable property registration? Survey and Land
Registration
Bureau
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey and Land
Registration
Bureau
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: https://www.slrb.g
ov.bh/information
center/details/?
PageId=109&Pag
eId2=38&ChnlId2
=25
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: https://www.slrb.g
ov.bh/information
center/details/?
PageId=108&Pag
eId2=37&ChnlId2
=25 There is an
online calculator
to calculate
transaction fees
at:
https://www.slrb.g
ov.bh/application
s/feecalc
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Page 24Doing Business 2019 Bahrain
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
Link for online access: All maps can be
bought online at
http://www.slrb.g
ov.bh/Commerce
Site/default.aspx
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 4.0
Are all privately held land plots in the economy formally registered at the immovable property Yes 2.0
registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property Civil Court
worth 50 times gross national income (GNI) per capita and located in the largest business
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
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