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Ease of Doing Business in

Bahrain

Bahrain Download Profile (1724KB, pdf)
Region Middle East & North Africa
Income Category High income
Population 1,377,237
GNI Per Capita (US$) 20,350
City covered Manama

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 63 66 up
3
68.44 66.38 down
2.06
Starting a Business 73 142 up
69
87.82 76.23 up
11.59
Dealing with Construction Permits 19 17 down
2
79.56 79.65 down
0.09
Getting Electricity 72 77 up
5
74.80 71.74 up
3.06
Registering Property 25 25
-
81.07 81.07
-
Getting Credit 101 109 up
8
45.00 40.00 up
5.00
Protecting Minority Investors 106 101 down
5
50.00 50.00
-
Paying Taxes 4 4
-
94.44 94.44
-
Trading across Borders 82 82
-
72.50 71.87 up
0.63
Enforcing Contracts 110 108 down
2
54.53 54.53
-
Resolving Insolvency 88 83 down
5
44.66 44.28 up
0.38

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

19

DB 2016 Rank:

17

Change in Rank:

down2

DB 2017 DTF (% points):

79.56

DB 2016 DTF (% points):

79.65

Change in DTF (% points):

down0.09

STANDARDIZED WAREHOUSE
Estimated value of warehouse BHD 366,667
City Manama
Indicator Bahrain Middle East & North Africa OECD high income
Procedures (number) info_outline 9 15.1 12.1
Time (days) info_outline 146 129.5 152.1
Cost (% of warehouse value) info_outline 2.2 3.3 1.6
Building quality control index (0-15) info_outline 12 10.0 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Hire an external certified consultant to obtain the building permit and supervise construction

    Agency: Private Firm

    1 day BHD 7,333
    2

    Obtain inquiry information certificate

    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.

    16 days BHD 30
    3

    Obtain a land survey from a private consultant

    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.

    2 days BHD 80
    4

    Obtain final building permit

    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.

    90 days BHD 529
    5

    Request and receive final inspection from Civil Defense

    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."

    1 day no charge
    6

    Receive final inspection from the Municipality

    Agency: Municipality

    Upon completion of construction, an inspection from the Municipality is required.

    1 day no charge
    7

    Obtain certificate of completion from the Muncipality

    Agency: Municipality

    After the inspection, the certificate of completion is obtained with which the power connection can be installed.

    4 days BHD 39
    8

    Obtain water connection

    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.

    30 days BHD 25
    * 9

    Obtain sewage connection

    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)

    30 days BHD 150

    * Takes place simultaneously with previous procedure.

  • 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; Free of charge; In official gazette. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    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 compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer; Private firm. 1.0
    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? (0-2) Inspections by in-house engineer; Inspections by external engineer or firm; Inspections at various phases; No inspections are legally required during construction. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice; Inspections are not mandated by law but commonly occur in practice during construction. 1.0
    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 with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Final inspection is not required by law. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    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 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 3.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering; Being a registered architect or engineer. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0