Short answer: GCC nationals, including Saudis, have wider access than other foreigners in Bahrain. According to the Sijilat portal guide, GCC citizens may engage in all activities except certain prohibited ones, and some activities closed to foreigners are open to GCC ownership. A resident manager in Bahrain is not required.
How the law handles it
Prime Minister's Decision No. 40 of 2021 sorts activities into five schedules:
Activities reserved for Bahrainis.
Activities requiring at least 51% GCC ownership.
Activities requiring a minimum GCC shareholding.
Activities conditional for multinational companies.
Activities open to 100% foreign ownership.
The practical difference is in the second and third schedules: a GCC investor can enter them with full or majority ownership, while a non-GCC foreigner needs a Bahraini or GCC partner. The schedules have been amended several times, most recently by Decision No. 71 of 2025 and Decision No. 36 of 2026, so the activity's schedule should be checked against the latest amendment before applying.
Practical steps
Identify the activity and check its schedule and permitted ownership.
Choose the legal form (sole proprietorship or WLL).
Reserve the trade name and apply through Sijilat.
Prepare and notarise the memorandum of association.
Secure premises and any activity-specific approvals. The process usually takes one week to one month, unless special approvals are needed.
Why many Saudis choose Bahrain
Proximity to the Eastern Province via the King Fahd Causeway, and treatment of GCC nationals closer to that of Bahrainis in many activities.
Frequently asked questions
Does a Saudi need a Bahraini partner? For most activities, no, but some activities are reserved for Bahrainis and are not open to him.
Can the company be run from Saudi Arabia? Yes. A resident manager in Bahrain is not required, subject to premises and activity requirements.
Why Clinic Law?
A specialist company formation office registered with the Ministry of Industry and Commerce. We handle the Bahrain procedures for you until the CR is issued, without you having to travel for every step. Read also: how much it costs to set up a company in Bahrain.
Get in touch: send us your intended activity on WhatsApp at +973 17004114 and we will check its schedule and permitted ownership before you apply.
Last updated: 5 November 2026. This article is general information and is not legal advice.
