KPMG report finds Bahrain's financial industry benefits from low operating costs

For financial services institutions, the cost of doing business in Bahrain is lower than in Dubai or Qatar, a recent KPMG report said.

The report said operating costs in Bahrain are 37 percent lower than in Dubai and 46 percent lower than in Qatar.

“We are honored to be part of this important initiative and to provide an independent overview of the financial sector in Bahrain, a critical sector in the local economy,” Jalil Al Aali, KPMG's head of financial services in Bahrain, said.

The KPMG report considered several factors, including the average expense of commercial rental rates, occupancy cost, manpower cost and communication and utility expenses in addition to the average cost of living. The information details that Bahrain benefits from some of the region’s least expensive operating costs, specifically in the financial services industry.

“The financial services sector offers scope for complementary growth across the GCC region, but this report demonstrates that Bahrain presents particular benefits for businesses seeking to build a regional presence in key subsectors or to develop back office operations,” Bahrain Economic Development Board Chief Executive Khalid Al Rumaihi said.

The sectors found to benefit the most from the low cost of business transactions in Bahrain are those that call for highly educated, bilingual employees like those in subsidiary services for the insurance, asset management and Islamic finance segments. In addition, Bahrain offers higher wages, at an average of 6 percent and 15 percent less than Dubai and Qatar respectively.