United States Department of State

The investment climate in the Kingdom of Bahrain is generally good, and has remained relatively stable in the last year. Bahrain has a liberal approach to foreign investment and actively seeks to attract foreign investors and businesses. In an economy largely dominated by state owned enterprises (SOE's), the Government of Bahrain (GOB) aims to foster a greater role for the private sector in economic growth. The efforts focus on encouraging foreign direct investment in Bahrain, including in the information and communications technology (ICT), education and training services, tourism, financial services, business services, healthcare services, energy, and aluminum sectors. The U. S.-Bahrain Bilateral Investment Treaty (BIT) entered into force in May 2001 and the U. S.-Bahrain Free Trade Agreement (FTA) entered into force in January 2006. The BIT provides benefits and protection to U. S. investors in Bahrain, for example, most-favored nation treatment, the right to make financial transfers freely and without delay, international law standards for expropriation and compensation cases, and access to international arbitration. The BIT guarantees national treatment for U. S. investments across all sectors, with very few exceptions. American firms interested in selling products exclusively in Bahrain are no longer required to appoint a commercial agent. Bahrain allows 100 percent foreign-ownership of new industrial entities and the establishment of representative offices or branches of foreign companies without local sponsors. Under the U. S.-Bahrain FTA, Bahrain is committed to enforcing world-class Intellectual Property Rights (IPR) protection. Despite the GOB's transparent, rules-based government procurement system, U. S. companies have reported operating at a perceived disadvantage compared with other firms in certain government procurements. Some businesses report contracts are not always awarded solely based on price and technical merit. Many ministries require firms to pre-qualify prior to bidding on a tender, often rendering firms with little prior experience in Bahrain ineligible to bid on major tenders. U. S. firms sometimes report perceived high-level corruption is an obstacle to foreign direct investment. Petty corruption, however, is relatively rare in Bahrain. The bureaucracy is sometimes inefficient, but generally honest. Giving or accepting a bribe is illegal, although relevant laws are enforced with some degree of inconsistency. In February 2011, a period of political and civil unrest began in Bahrain. While the situation today is quite different and far more stable than in 2011, demonstrations continue to occur, occasionally developing into violent clashes by demonstrators against police. These violent clashes, when they occur, sometimes make travel in and around parts of Bahrain potentially dangerous. There are no indications that Westerners or U. S. citizens are being targeted directly, but there have been isolated incidents in which protesters voiced anti-U. S. sentiments and burned U. S. flags. The unrest has had a limited impact on American businesses in Bahrain. The Kingdom of Bahrain held Parliamentary elections in November 2014, during which the business community played an active role. These were the first elections held since constitutional reforms enacted in 2012 gave the legislative branch powers to discuss and approve a Government Action Plan (GAP). In February 2015, the newly-elected parliament approved the 2015-2018 GAP, which included plans to build 25,000 housing units, additional infrastructure development, and minor health care reforms.

The Kingdom of Belgium (Belgium) is a nation located in Western Europe. In 2015, the Belgian economy is expected to grow 1.1 percent, this is likely driven by rising household consumption and business investment. Lower energy prices and interest rates, and a favorable EUR/USD exchange rate are all expected to stimulate economic growth expectations and fuel exports, especially given Belgium's unique position as a gateway hub to Europe. However, the recovery remains fragile: weak consumer confidence, low competitiveness and continued economic slowdown in the euro area may constrain growth prospects, and a highly rigid labor market and complicated tax regime remain impediments to investment. AssetsBelgium boasts an open market well connected to the major economies of the world. As a logistical gateway to Europe, host to EU institutions, and a central location closely tied to the major European economies, Belgium is an attractive market and platform for U. S. investors. The Belgian government was active in the rescue of its major banks and the financial markets have largely stabilized, following reductions in bank debt and exposure to high-risk derivative markets. Foreign and domestic investors are expected to take advantage of improved credit opportunities and increased consumer and business confidence. Belgium is a highly developed, long-time economic partner of the United States that benefits from an extremely well-educated workforce, world-renowned research centers, and the infrastructure to support the broad range of economic activities. LiabilitiesBelgium's international competitiveness has been hindered by a rigid labor market that makes their workforce relatively more expensive compared to neighboring countries. Belgium's corporate tax rate at 33.99 percent is one of the highest in Europe and is only somewhat mitigated by a series of subsidies and tax deductions. The ongoing Sixth State Reform has slowly been shifting certain responsibilities from the federal to the regional governments. However, it is not yet clear how these evolving responsibilities may affect some of the incentives and deductions in place. On BalanceBelgium has a dynamic economy and continues to attract significant levels of investment in chemicals, petrochemicals, plastic and composites; environmental technologies; food processing and packaging; health technologies; information and communication; and textiles, apparel and sporting goods, among other sectors. Over the past few years, Belgium has lost some of its traditional manufacturing base, which had benefitted from U. S. investment. Over the past five years for instance, the U. S. automotive industry has almost completely pulled out of Belgium. American companies in particular have made recent investments in petrochemicals, health technologies, and information and communication.

Bermuda is a British Island territory located in the North Atlantic Ocean. The government of Bermuda (GOB) welcomes foreign direct investment (FDI). Bermuda's economy is almost wholly dependent on FDI which derives primarily from the influx of international businesses - principally insurance, reinsurance, and financial services - with a small contribution from tourist sector. In the mid-1990s, foreign investment overtook tourism and this became Bermuda's economic foundation. In 2013 it contributed to approximately 85 percent of the total GDP, compared to tourism's 5.2 percent. Bermuda's has entered into its seventh straight year of economic recession. In 2013, the GDP was at USD 5.6 billion, or USD 4.7 billion after adjusting for inflation, down 2.5 percent from 2012. Continued job losses and business closures have affected the overall economy. According to the National Economic Report, Bermuda's GDP may have contracted by 0.0-1.5 per cent in 2014. For 2015, the GOB has predicted a GDP growth in the range of 0.0 percent to 1.5 percent, while all other indicators seem to foresee another year of recession. In February 2015, the GOB announced that it would borrow another USD 125 million to cover its current fiscal budget; in addition to the USD 800 million it borrowed in 2013 to cover deficits for 2014-16 period. Fitch Ratings reaffirmed Bermuda's A+ rating with a stable outlook in May 2015. It said Bermuda's ratings are supported by its "high income, consistent current account surpluses and strong net external creditor position," along with its sophisticated legal system, strong regulatory framework, simple tax regime, proximity to the U. S., and skilled human capital which, it said, will allow Bermuda to continue to compete as a domicile for re/insurance and financial services companies. The GOB has not yet implemented its 2014 plan to privatize, mutualize (a form of privatization in which employees are shareholders), and/or outsource non-core government functions. The GOB signed an exclusive agreement with the semi-public Canadian Commercial Corporation to build a new USD 200 million airport terminal pursuant to a public-private partnership to be financed by future airport revenues. Bermuda's investment climate presents a series of advantages for potential investors including a stable, democratic government; low personal and corporate taxes; a pool of skilled professionals; proximity to the U. S.; and extensive air and communication networks. Its currency, the Bermuda dollar (BMD), is pegged par to the USD. As part of a British Overseas Territory, Bermuda's legal system is grounded in UK common law. Its legal, regulatory and accounting systems adhere to high ethical and transparency standards. It generally effectively and impartially enforces its laws to combat corruption and money laundering. Bermuda law recognizes and enforces secured interests in real property. The GOB's policies facilitate the free flow of financial resources in the product and factor markets, and the U. S. Securities and Exchange Commission recognizes the Bermuda Stock Exchange (BSX) as a Designated Offshore Securities Market. There is a general awareness of responsible business conduct among both producers and consumers. There were several strikes and non-violent, labor-related marches on Parliament during 2014 and 2015.

Bosnia and Herzegovina is a country on the Balkan Peninsula in southeastern Europe. Bosnia and Herzegovina's (BiH) political environment and complex government structures create significant obstacles to economic development and foreign direct investment. Although open to foreign investment, investors face a number of serious obstacles including complex legal and regulatory frameworks, non-transparent business procedures, corruption, insufficient protection of property rights, and a weak judicial system. BiH is effectively a landlocked country; its 12-mile coastline (Neum) lacks major transportation links. BiH's poor investment climate, coupled with the lingering effects of the global economic downturn, make BiH the least competitive economy in Southeast Europe, currently ranked 107 out of 189 global economies on the World Bank's 2015 Doing Business report (down 3 spots from 2014). Historically, U. S. investment in BiH has been low, primarily due to the challenging business climate. Nonetheless, BiH offers business opportunities to well-prepared and persistent exporters and investors. The country is richly endowed with natural resources, providing potential opportunities in the energy (hydro and thermal power plants), agriculture, timber, and tourism sectors. The best business opportunities for U. S. exporters to BiH include energy generation and transmission equipment, telecommunication and IT equipment and services, transport infrastructure and equipment, engineering and construction services, medical equipment, and raw materials and chemicals for industrial processing. In 2014, the U. S. exported USD 323 million in goods to BiH.

Botswana is a land-connected country located in Southern Africa. Botswana has historically enjoyed among the highest economic growth rates in the world and its export-driven economy is highly correlated with global economic trends. Development has been driven mainly by revenue from the diamond industry, which has enabled Botswana to provide infrastructure such as transportation and social services. During the 12 months prior to September 2014, Botswana's economy grew by 4.2 percent and inflation remained at the bottom end of the central bank's 3 percent to 6 percent spectrum. According to Government of Botswana (GOB), investments within Botswana totaled USD 4 billion in 2012. In accordance to the World Bank's rating scale, Botswana's per capita income of USD 7,730 makes it higher than most other sub-Sahara countries. As of December 2014, Moody's and S&P rate Botswana's sovereign debt as A2 and A-, respectively. Botswana is a stable, democratic country with an independent judiciary system. It maintains a stable macroeconomic environment, fiscal discipline, a well-capitalized banking system, and a sensible crawling peg exchange rate system. Corruption in Botswana remains less pervasive than in other parts of Africa; nevertheless, foreign and national companies have commented an increasing tender-related corruption where colluding officials manipulate the process. The GOB has launched initiatives to promote foreign investment in key sectors in order to diversify its economy beyond diamond industry and it created the Botswana Investment and Trade Centre to assist local and foreign investors in this endeavor. Botswana is a member state to both the ICSID convention and the 1958 New York convention. Despite a commitment towards attracting investment, GOB policies do not always facilitate foreign business operations in Botswana. Currently they do not have a consolidated legal framework that clarifies the protections and incentives afforded to investors and there are limitations on foreign participation in the market. At least twenty different service sector businesses are reserved for nationals. Complimentary to this are the institutionalized preferences of procuring goods and services from citizen-owned sources. Managers cite local skills deficits, low labor productivity, and challenges obtaining work permits for foreign workers as key business constraints in Botswana. Bureaucratic hurdles and shortages of water and electricity also hamper economic activity in Botswana and the government's increasing number of state-owned enterprises (SOEs) and market holdings crowd out the private sector. The GOB is seeking to improve its customs and procurement processes with assistance from USAID, and the U. S. Trade and Development Agency. The World Bank ranked Botswana 74 out of 189 economies in the category of Ease of Doing Business. Key investment opportunities include large water, electricity, transportation, and telecommunications infrastructure projects that the GOB has plans to implement. The lion's share of economic activities outside the diamond sector are driven by government procurement and the GOB has an approximate USD 5 billion budget for the 2015 fiscal year. Economic experts have noted that Botswana has considerable potential in areas such as; mining beneficiation, electricity, meat industry, tourism, and financial services sectors.

Brunei Darussalam is an energy-rich Sultanate on the northern coast of Borneo in Southeast Asia. Brunei boasts a well-educated, largely English-speaking population, excellent infrastructure, and a government intent on attracting foreign investment and projects. In parallel with Brunei's efforts to attract foreign investment, the country has improved its protections for Intellectual Property Rights (IPR). Despite repeated calls for diversification, Brunei's economy remains dependent on the income derived from sales of oil and gas. Substantial revenue from overseas investment supplements income from domestic hydrocarbon production. These two revenue streams provide a comfortable quality of life for Brunei's population. Citizens are not required to pay taxe, have access to free education through to the university level, free medical care and, frequently, subsidized housing. Brunei has a stable political climate and is generally sheltered from natural disasters. Brunei's central location in Southeast Asia, with good telecommunications, numerous airline connections, business tax credits in specified sectors, and no income, sales or export taxes offers a welcoming climate for would-be investors. Brunei is a founding member of the Trans-Pacific Partnership (TPP) trade negotiations. Sectors offering U. S. business opportunities in Brunei include Aerospace & Defense, Agribusiness, Construction, Petrochemicals, Energy & Mining, Environmental Technologies, Food Processing & Packaging, Franchising, Health Technologies, Information & Communication, Islamic Finance, and Services. In 2014 Brunei released an Energy White Paper outlining its vision of leveraging its oil wealth to diversify its economy, create local employment, increase foreign direct investment (FDI), and sharply increase the use of renewable energy by 2035. The Export-Import Bank of the United States (EXIM) and the Energy Department of Brunei's Prime Minister's Office signed a Memorandum of Understanding (MOU) that calls for expanded information sharing regarding trade and energy business opportunities in the Asia-Pacific region, as well as exploring options for utilizing up to USD 1 billion EXIM Bank loans to finance U. S. exports in support of selected projects in the region. The MOU creates significant new opportunities for U. S. energy companies in Brunei and the Asia-Pacific region while advancing the goals set out by the United States-Asia Pacific Comprehensive Energy Partnership (USACEP). In 2014 Brunei began supplementing the existing common law-based penal system with a penal code based on Islamic law, which will carry Sharia punishments. The Islamic Penal Code is applicable across the board. The first phase became effective on May 1, 2014. It expands restrictions regarding the drinking of alcohol, eating in public during the fasting hours in the month of Ramadan, and indecent behavior. Two subsequent phases, the timing of which is not yet clear, are expected to introduce severe punishments such as; stoning to death for certain sex-related offenses and the amputating of limbs. Brunei officials say the most severe punishments will rarely if ever be implemented given the very high standard of proof required under the Sharia Penal Code. While the law does not specifically address business-related matters, potential investors should be aware that there is controversy surrounding the Sharia Penal Code issue.

Over the last few decades, the Dominican Republic has adopted policies of greater openness to international trade and investment. As a result, foreign direct investment (FDI) has played a prominent role in its economic development. However, significant systemic problems can make investing in the country a risky undertaking. Foreign investors cite a lack of clear, standardized rules by which to compete and a lack of enforcement of existing rules. Complaints have included corruption, requests for bribes, delays in government payments, the time and cost necessary to enforce contracts, and non-standard procedures in customs valuation of imported goods, as well as product misclassification as a means of negating CAFTA-DR benefits and increasing customs revenues. The Dominican authorities have carried out some reform efforts aimed at improving transparency and effectiveness of laws affecting competition. Nevertheless, corruption, the need for more reform, and better implementation of existing laws are openly and widely discussed as key public grievances. President Danilo Medina, who took office in August 2012, has made notable efforts to promote government accountability and macroeconomic stability. In 2014, the Dominican economy grew 7.3 percent, according to the Central Bank, making it one of the countries in Latin America with the highest growth. Growth was led by the mining sector (particularly gold), with 20.3 percent growth, the construction sector, with 13.8 percent growth, and by local manufacturing, agriculture, and free trade zone production. The fiscal deficit, at 2.6 percent of GDP in 2014, was down slightly from the previous year. While the macroeconomic situation has stabilized, the investment climate in the coming years will largely depend on sustaining the political will to make and to implement reforms necessary to promote competitiveness and attract further foreign investment.

Finland is a Nordic country located in Northern Europe. Finland has a strong, stable and modern economy with a triple A credit rating. They are members of the European Union and part of the euro area. The government of Finland (GOF) is open to Foreign Direct Investment and offers a business-friendly environment. Finland offers highly skilled, educated and multilingual labor force, with strong expertise in ICT, mobile technologies and renewable energy production. The GOF has taken steps to attract foreign investment by creating a network called Team Finland to promote foreign investment and foster the country's international image. This network brings together under one umbrella the services offered through a variety of state-funded agencies. This one-stop shop aims at more effective and uniform use of public resources in order to target the promotion of exports and inward investment. Both foreign and domestic companies can equally benefit from GOF investment incentives, research and development support and innovation systems. The U. S. Embassy in Helsinki, through the Foreign Commercial Services and Political/Economic Sections, is a strong partner with U. S. businesses that wish to connect to the Finnish market. The Embassy has worked to create an affirmative and robust trade and investment agenda that works to attract investment in America and creates new markets for U. S. products and services in Finland and the broader region. Finnish counterparts are very active in the fields of information technology, energy, biotech, clean water, and other topics. With Tallinn only two hours by ferry, and Stockholm and the Arctic Circle only one hour by flight, Finland can be a good base camp for consolidating regional operations.

Luxembourg, officially the Grand Duchy of Luxembourg, is a landlocked country in Western Europe. Over the past five years, Luxembourg's economy has evolved significantly, through greater sectorial diversification and openness in both regulations and foreign direct investment opportunities. Diversification of the economy away from the historically-dominant financial sector (including both banking and investment fund services) began in earnest a decade ago, in 2004, when key future industries were selected as economic growth vectors: logistics; information and communications technology (ICT); health technologies (including biotechnology and biomedical research); clean or "green" technologies (solar, wind, and alternative energy sources); and more recently, space technologies (focusing on satellite development). Subsequently and partly as a bi-product of the world financial crisis that started in 2008, Luxembourg came under fire from other European Union (EU) Member States, as well as international organizations such as the Organization for Economic Cooperation and Development (OECD) for being a so-called tax haven, mainly due to historic banking secrecy laws. With the advent of the U. S. Foreign Account Tax Compliance Act (FATCA) and the EU-mandated Automatic Exchange of Information Law for bank savings accounts, replacing the previous automatic withholding of taxes on savings, Luxembourg was pressured into reform toward greater openness - which has in fact created opportunities for increased foreign direct investment, as they move away from a non-transparent image. The Luxembourg investment climate is more conducive than before to U. S. investment, and plenty of opportunities exist for U. S. businesses in the key growth sectors mentioned above. The Government of Luxembourg (GoL) is actively seeking out logistics companies to expand the new logistics hub at Findel Airport - integrated into the Luxair Cargo Center, the leading air cargo hub in Europe with Cargolux, Luxembourg's all-freight airline - and also ICT companies to use the new state-of-the-art Data Centers, affording high-speed internet connectivity to major international data hubs (Paris, Frankfurt, Amsterdam). U. S. biomedical research and biotechnology firms are already actively invested and working in the growing Bio Bank (Integrated Bio Bank of Luxembourg, IBBL), co-founded with U. S. institutes in Phoenix, AZ and Seattle, WA in 2008. Luxembourg has positioned itself as "the gateway to Europe" to establish European company headquarter operations by virtue of its central European location and advanced road and railway connectivity. However, as Luxembourg continues to modernize its regulatory framework - reducing bureaucracy and streamlining processes for work visas and new company registrations - issues of size of market (small market at 520,000 population) and continued European-legacy inefficiencies (government centralization; high costs and rigidity of labor market; and generous social benefits) will endure for some time to come.

Guatemala has the largest economy in Central America, with a USD 58.7 billion gross domestic product (GDP) in 2014, and an anticipated 4.1 percent growth rate expected in 2015. Remittances, mostly from the United States, increased by 8.6 percent in 2014 and were equivalent to 9.4 percent of GDP. The United States is Guatemala's most important economic partner. The Guatemalan government (GoG) continues to enhance competitiveness, promote investment opportunities, and work on legislative reforms aimed at supporting economic growth. More than 200 U. S. and other foreign firms have active investments in Guatemala, benefitting from the U. S. Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). Foreign direct investment (FDI) stock was USD 12.1 billion in 2014, an 18 percent increase in relation to 2013. FDI is predominately in mining and energy infrastructure, and in the agricultural sector. Despite positive steps to improve Guatemala's investment climate, international companies choosing to invest in Guatemala face significant challenges. Complex and confusing laws and regulations, inconsistent judicial decisions, bureaucratic impediments, and corruption continue to constitute practical barriers to investment. Under CAFTA-DR obligations, the United States has raised concerns with the GoG regarding its enforcement of both its labor and environmental laws. In March 2015, the Presidents of Guatemala, El Salvador, and Honduras, and Vice President Biden signed a Joint Statement of Commitments to implement specifics of the Northern Triangle's Plan for the Alliance for Prosperity. They agreed to promote strategic areas of interest such as: energizing the productive sectors of the economy; creating economic opportunities; developing human capital, citizen security, and social inclusion; improving public safety and enhancing access to the legal system; and strengthening institutions to increase trust in the state. On April 8, 2015, a grant agreement between the Millennium Challenge Corporation (MCC) and the GoG was signed for a USD 28 million, three-year Threshold Program with Guatemala to provide quality educational opportunities and support GoG revenue mobilization reforms, both of which will address binding constraints to economic growth. Since 2006, the UN-sponsored International Commission against Impunity in Guatemala (CICIG) has undertaken numerous high-profile official corruption investigations, leading to significant indictments. CICIG has gained the endorsement of the private sector for its recent work against graft in the Customs and Tax Offices. Guatemala will hold national elections September 6 2015 and a run-off in the presidential race, should no candidate receive more than 50 percent of the vote, is scheduled October 25. We expect elections to be free and fair. The political situation in Guatemala is tense following a number of government corruption scandals and calls for widespread reform that started in April and promises a heated election cycle. Historically there have been limited cases of campaign violence centered on local elections and we expect that will continue in 2015. The change of administration will occur on January 14, 2016.

The Republic of the Congo (RoC) is a country of enormous potential wealth relative to its small population of 4.5 million. The RoC's economy continues to demonstrate sustained moderate growth, hovering near 5 percent in 2015 according to the RoC's Ministry of Economy and Finance. This growth is mostly attributable to oil production as oil accounts for 70 percent of GDP and 80 percent of government revenue. The non-oil sector is primarily focused on the logging industry, but growth is also occurring in the telecommunications, banking, mining (potash, iron ore), construction, and agricultural (palm oil, rubber) sectors. The RoC is a country poised for economic diversification, with some of the largest iron ore and potash deposits in the world, a heavily-forested land mass, a deep-water International Ship and Port Facility Security (ISPS) Code-certified port, fertile land, and a small but heavily urbanized population. Since 2000, the RoC has been eligible for the African Growth and Opportunity Act (AGOA), a nonreciprocal trade preference program that provides an additional enticement for export-related investment. RoC is a member of Financial Community of Africa (FCA). Despite continuing yearly improvements in the macroeconomic figures for the RoC, 46 percent percent of the population lives on less than USD 1.40 per day, putting poverty prevalence much higher than in peer oil-exporting countries. There is no apparent middle class with respect to education, skills, and material living standards. The RoC suffers from low education standards and little social mobility. Most of the population still operates in the informal sector of the economy. Weak infrastructure, including poor transportation systems, a nascent broadband internet, and inconsistent electric and water supply, present the biggest hurdles for most foreign direct investment. The country is still without a fully paved road to connect its distinct commercial and political capitals of Pointe Noire and Brazzaville, respectively, or a reliable railroad system to connect inland iron ore and timber resources in the north and west of the country to the port of Pointe Noire. However, infrastructure improvement projects are evident everywhere in the major cities of the RoC, and the government reports spending enormous amounts of capital on infrastructure improvements. Investors report that the commercial environment in Congo has not improved substantially in the last few years. Many feel that they have good working relations with government officials, but corruption, especially among informal tax collectors, is still widespread. In January 2013, the Congolese government created an Agency for the Promotion of Investments (API) to promote economic diversification through expanding the pool of external investors. Throughout 2013, the government continued to put in place regulatory reforms with the stated goal of improving the business environment. Nevertheless, businesses are not yet noticing positive impacts from the new regulations, and the RoC remains near the bottom (178 out of 189) on the World Bank's, Ease of Doing Business rankings. Established American businesses operating in the RoC, as well as companies interested in establishing a presence, continue to encounter obstacles. Various companies have raised concerns to the U. S. Embassy related to land titles, tax law misapplication, and general difficulty initiating negotiations with government of the RoC (GRoC) officials. In May 2014 the RoC promulgated several decrees to promote business and reduce policy constraints. These include eliminating customs-like controls of goods within the territory of the RoC, land purchases, a time limit of 48 hours in which to establish a business, simplified means of paying of taxes, and streamlining the procedures for obtaining building permits.