Bahrain has a tried-and-tested legal and regulatory environment in which investors can trust to fairly protect their interests in an open and transparent manner. To promote high business standards, the government has created a number of regulating bodies to support business development. Additionally:

• Bahrain’s financial sector has the most experience and the longest track record and effective regulations in the Middle East, governed by The Central Bank of Bahrain (CBB). The CBB is considered the best regulator in the region. The CBB, the single regulator in the country, is recognized internationally for its regulation, innovation, transparency, non-discriminatory treatment, license management and operational efficiency. A comprehensive regulatory rulebook from CBB is regularly updated and provides comfort to those investing that they are conducting business in a transparent and well-supervised environment. The positive reputation of the CBB, together with key endorsements from the IMF and other external bodies, has contributed to Bahrain’s continued attractiveness as a hub for finance in the Gulf.

• Bahrain was the first country in the Gulf to enjoy a Free Trade Agreement (FTA) with the United States, a testament to Bahrain’s high economic standards and stability.  Aside from trading advantages that stimulate the flow of investments between the two nations, Bahrain introduced further liberalisations to the financial market which resulted in greater expansion in the industry. 

• The GCC, of which bahrain is a member, has recently signed an FTA Agreement with Singapore which is currently awaiting ratification. The GCC has also recently installed an FTA with EFTA (made up of Switzerland, Norway, Iceland and Liechtenstein). Moreover, the GCC is currently in negotations to conclude an FTA with the European Union, China, Japan, India, Pakistan, Australia, New Zealand and MRECOSUR (Argentina, Brazil, Paraguay, Uruguay, Venezuela as full members in addition to Chile, Bolivia, Columbia, Ecuador and Peru as Associate Members).

• The information communication technology sector (ICT), is regulated by the Telecommunications Regulatory Authority, who is in charge of promoting fair competition among established and newly licensed operators.

• Intellectual property have been supplemented and enhanced to provide protection to right holders.

• The International Centre for Dispute Resolution (ICDR), the international division of the American Arbitration Association, and Bahrain's Ministry of Justice and Islamic Affairs is due to open an arbitration and mediation center in Bahrain in October 2009. The Bahrain Chamber for Dispute Resolution-AAA (BCDR), will administer the arbitration and mediation of domestic and regional commercial disputes, including insurance, construction, financial services and energy disputes. (Source: ICDR.org) 

• Since 2001, foreign firms and GCC nationals and companies have no restriction on land ownerhsip. Non-GCC nationals could own high-rise commercial and residential properties in addition to businesses in specific geographic areas in such fields as banking and finance, tourism, health and training institutes. Non-GCC nationals and foreign owned companies are allowed to own land and build properties in all business and industrial areas, as well as substantial parts of other areas.