V.  MARKETING U.S. PRODUCTS AND SERVICES

Bahrain's primary commercial importance is as a regional center, serving not
only the Gulf countries but also the Middle East in general, as well as South
Asia.  Because the country has limited oil and other natural resources, the
government has long aimed at making Bahrain into the "Singapore" of the
region.  Laws, regulations, and infrastructure have been developed with that
goal in mind, and an increasing number of U.S. companies have established
regional headquarters in Bahrain.  By law, foreign companies do not require a
local agent of partner in order to set up or operate a regional office in
Bahrain, although some U.S. companies setting up regional offices have found
it useful to have some sort of facilitating relationship with a local company;
this is a matter of individual company preference.  Except for factories or
regional offices established in Bahrain, which can sell products and services
locally, commercial sales within Bahrain can only be made through a Bahraini
agent or a joint company set up with at least 51 percent Bahraini ownership.
The 1992 Commercial Agencies Law, which governs relations with local agents,
allows termination of an agency agreement without penalty to the foreign
company in the case of a non-performing agent; however, this provision has
still not been adequately tested, and care should be taken in drawing up
agreements.  Although it is not technically necessary to use a local attorney
to draw up agency and sales agreements, it is generally advisable to do so.

The U.S. Embassy's Economic and Commercial Section will give individualized
advice on potential agents, distributors or partners for interested U.S.
firms.  U.S. companies wishing to set up offices, distribution centers, or
factories in Bahrain can get "one-stop shopping" information and guidance from
the Bahrain Marketing and Promotion Office (see Appendix C for address).  The
BMPO will also assist in the actual company registration and other required
procedures for setting up operations in Bahrain.  With BMPO assistance the
total process of setting up in Bahrain can be accomplished in as little as one
week, once registration forms have been filled out.

Many food importers are generally also wholesalers, distributors, and
retailers.  A handful of large local companies tend to dominate sales.  There
is growing demand among processors/packers for bulk shipments of
semi-processed food products for final processing and packaging, especially
corn oil, tree nuts, fruit juices, and snack foods.  Imported U.S. beef
products are mostly purchased by hotels, restaurants, and catering companies.


U.S. fast food franchises are highly sought after by local contacts.  Almost
all the major U.S. food franchise companies are present in the market.  A
local sponsor is required.

For food products, it is important to stress quality, since U.S. foods tend to
be higher priced than products from other origins, partly due to longer
transportation time.  Gulf consumers recognize the high quality of U.S. food
products and are willing to pay a premium for them.

In general, U.S. companies should select a local agent carefully and should
pay attention to his advice on advertising and promotion.  Due to local
culture and conditions, techniques and phraseology which may work in the U.S.
may not necessarily be effective here.

Principal local newspapers are:

Arabic language:

      Akhbar Al Khaleej
      P.O. Box 5300
      Manama, Bahrain
      (Tel:  (973) 620111; Fax:  (973) 624312)


      Al-Ayyam
      P.O. Box 3232
      Manama, Bahrain
      (Tel:  (973) 727111; Fax:  (973) 727552)

English language:

      Gulf Daily News
      P.O. Box 5300
      Manama, Bahrain
      (Tel:  (973) 620222; Fax:  (973) 622141)

For sales to government agencies, it is generally necessary to have a local
agent, although in some cases (e.g., sales to the Bahrain Defense Force) an
agent is not permitted.  Even where there is no formal agent, it is advisable
to have a local company serving as a local point of contact, providing advice,
and acting as "eyes and ears."  It is important to follow closely the local
agent or contact's advice in preparing tenders, as seemingly innocuous changes
in wording in the documents can sometimes spell the difference between success
or failure.  Tender documents should always be presented to the agent or
contact for vetting before submission.  The local agent or contact's advice on
pricing and timing can also be crucial and should be carefully listened to.

Although Bahrain has legislation protecting patents and trademarks, copyright
protection is inadequate, despite issuance of a copyright law in 1993.  The
best option for protecting specific works, aside from using side effects of
patent and trademark protection, is the cumbersome and expensive process of
registering each of them individually with the Ministry of Information.