New changes are on the horizon, and they could spell big profits for Bahrain. Are you ready?
Quite a few things have happened recently that indicate that the Chinese invasion is on its way.
For Bahrainis, the closest we have seen as evidence that Chinese business is on a roll here in the GCC is the Dragon Mart in Dubai. It has almost 4000(!) shops, made up mostly of Chinese retailers (I’m sure there’s a Starbucks in there, but I have yet to find it.)
It comes as no surprise that the region is ripe for Chinese firms to come over and bring in their unique brand of doing business in the region.
Bahrain’s more recent interactions began with HRH the King’s visit to China in 2013, after which ties grew immensely—culminating in the Bahrain EDB’s visit to China, during which several agreements were signed.
Bahrain-based Diyar Al Muharraq is set to launch the Chinese-themed Dragon City, a 115,000-square-meter mall with 780 shops, a majority of which will be Chinese retailers.
So what does this mean to little old Bahrain? Well, for one, the area around the project is set to be a lot more active in terms of property prices and market activity.
The Chinese also have a very unique way of conducting business. Their manufacturing has really set the global benchmark in the last few years, and this should mean that local businesses will be exposed to new demand for locally-sourced raw materials.
For years now, we have been hearing of people heading to China to decorate their whole house, and shipping the items directly to Bahrain. It’s all so systematic, too. You place an order for a piece of furniture, make a down payment, and have it shipped in a crate directly to Bahrain at a fraction of what it would cost if bought elsewhere. It is very rare to leave a Chinese furniture shop without getting what you want. The table you liked only seats six, but you wanted it for eight people? No problem! They will custom-make it for you—in record time, too.
This means that this kind of efficiency in production and outstanding customer service will become a mainstay in the Bahraini market. It will not only bring the market standard to a global level, but also invigorate existing Bahraini businesses that deal with Chinese firms while giving the Bahraini consumer a much wider choice than before.
Bahraini businesses will need to step up their game and adapt to this change in the market. Some Bahraini businesses might find it much more convenient and cost-effective to deal with the Chinese on our own soil instead of from a distance. Local businesses will not be able to hike up prices and expect customers to pay due to lack of alternatives.
On a more macro level, the success of Chinese business in the region is currently paving the way for much bigger investments. In 2010, a Chinese contractor won the bid to construct the Mecca Railway, solving a huge problem of buses (especially during Hajj season) and creating jobs for almost 30,000 Saudi nationals.
Bahrain seems to stand next in line to benefit from this newfound partner. This is helped along by Bahrain’s lack of restrictions on foreign ownership of companies in the region, especially compared with its rich neighbors, the U.A.E. and Qatar.
