Where is it?

The Kingdom of Bahrain, an archipelago of 33 islands, is located in the Arabian Gulf between the Qatar peninsula and the coast of Saudi Arabia.

What's so special about it?

A constitutional monarchy Bahrain has been inhabited since ancient times by the Assyrians, Babylonians, Greeks, Persians, Europeans and currently the Arabs and is proposed to be the site of the Biblical Garden of Eden. Its name means 'two seas' in Arabic and it is named after the largest of the 33 islands. The smallest Arab nation it has been connected to Saudi Arabia since 1986 when the Fahd Causeway was built.

Best kept secrets As its oil reserves are small and due to run out in 2010, Saudi Arabia has supplied Bahrain with discounted oil since 1997 so that it can continue to benefit from the price boom. While oil still represents 30% of its GDP the nation has strived to diversify its economy and according to the United Nations Economic and Social Commission for Western Asia Bahrain is the fastest growing economy in the Arab world. The 2006 Index of Economic Freedom said it was also the freest economy in the region.

Who lives here?

Pop star Michael Jackson spends a lot of time in the island nation and is thought to have bought a mansion in Sanad. Singer Shakira and Grand Prix driver Jenson Button also own properties and recent visitors were legendary Super Bowl quarterback John Elway and comedian Robin Williams.

What's the property market like?

Bahrain eager to replace its oil income is now a booming property market and has seen prices rise by 20% to 25% in the last two years. Foreigners are now also able to buy here thanks to new rules. Aiming to capitalise on the tourist market many resorts have been planned around the Kingdom. The Al Areen Resort, Dannat Hawar, Durrat Al Bahrain, Amwaj Islands, Lulu Island, Riffa Views, iceberg tower and Bahrain Bay have all been proposed for development. The $1bn Durrat Al Bahrain tourism and residential resort will cover a 20-kilometre stretch of reclaimed desert and sea in the shape of a necklace comprising of 13 islands. Two kilometres off the coast the Amwaj Islands have already begun construction and is another lavish residential and tourist development.

Bahrain has also situated itself as a financial centre and one of the largest planned construction projects is the Bahrain Investment Wharf (BIW). The $1.3bn development is a joint public and private venture and is divided into four distinct sections including an industrial park, a logistics park, a business park and a residential park.

How do you go about buying property?

For local news a good source is the Bahrain Tribune News or for business statistics Ameinfo is a website on Middle Eastern business news. If you are sourcing agents the BIPEX, Bahrain's largest property exhibition, is held every year. At home good places to start are the Association of International Property Professionals or Overseaslist. com. New rules, since 2003, mean that non-Bahrainis can buy land and get real property ownership. However, there are some restrictions and foreigners can only buy in certain areas that have been designated by the government.

Foreigners can get a permanent resident permit, which allows them to own property but this terminates if you sell the property.

Another restriction is that foreigners cannot buy land of more than 5,000sq m.

To cover these issues it is important to get the services of a good local Englishspeaking lawyer. Banks such as HSBC, Bank of Muscat, Bank of Bahrain and the Kuwait Finance House offer mortgages for properties in Bahrain.

Where are the best places to buy?

Designated areas such as Ahmed Al-Fateh District, Hoora District, Bu Ghazal District and Northern Manama, which is where all the diplomatic agencies are housed. Durrat Al-Bahrain, Amwaj Islands and also Dannat Hawar are particularly good as residential areas. The capital Manama is the biggest city and is home to a quarter of all Bahrainis.

What's the rental market like?

Bahrain has a very good rental market and provides strong yields, with figures currently running at about 10%. This is due to the fact that rental accommodation is in short supply. Given the fact that 59% of those living here are non-nationals the market is driven by outsiders and foreigners. The Bahrain legal system is also very pro-landlord in its approach.

What's the resell market like?

New properties in Bahrain are very often sold very quickly off-plan therefore the only properties available are completed resale properties, therefore these also rarely stay on the market for long. On the resale market a three-bed townhouse is likely to make about 230,000.

Average property prices?

Average sized one-bed apartments off plan start from $160,000 ( 119,846) and rise to about $350,000 ( 262,170) for luxury threebed apartments in the same location. A five-bed, four-bath immaculate villa will start from about $460,000 ( 344,567) and a massive villa off-plan is likely to set you back $1.3 million ( 973,776).

What are the tax breaks with Ireland?

Ireland does not yet have a double taxation agreement with Bahrain, most likely because it has no income taxes and rental income and capital gains are not taxed.

However earnings should be reported to the Irish Revenue.

FAST FACTS

Getting there: Gulf Air flies direct from Dublin to Bahrain
Area: 665sq km
Population: 698,585
Currency: Bahraini Dinar (1 BHD = 1.99)
Weather: Arid with temperatures ranging from 10degreesC to 42degreesC with slight rain only in Winter
Transport: Bahrain's airport is the hub for Gulf Air and has good links to the rest of the region and beyond.
There is a regular bus service from Dahran to Manama.
Going out: Bahrain is often known as "Middle Eastlite" because of its liberal attitude. Along Exhibition Avenue there are many sports bars but they can be pricey. The Gold Club Arabic night club is one of the main attractions. However remember it is an Arab country so dress and act appropriately.
Eating Out: Bahrain has a large choice of food outlets. Indian and Lebanese restaurants are popular and although expensive are worth it, especially the Ritz Carlton's Polynesian restaurant.
Shopping: Like many Gulf countries Bahrain has many large malls filled with well-known western brands, the Yateem Centre in Manama is the best.

USEFUL CONTACTS
>> Bahrain Embassy in London: 0044-207 901 9170; www. bahrainembassy. co. uk
>>Honorary Consular Agent for Ireland in Bahrain: 00973-31 772 8146; honconbh@batelco. com. bh
>>Ameinfo: www. ameinfo. com
>>Bahrain Tourism Board: www. bahraintourism. com
>>Bahrain Government: www. bahrain. gov. bh
>>Bahrain Ministry of Industry & Commerce: www. commerce. gov. bh
>>Bahrain Formula One Grand Prix: www. bahraingp. com. bh
>>Bahrain Tribune News: www. bahraintribune. com
>>Bahrain Property: www. thebahrainpropertysite. com
>>Bahrain Investment Wharf: www. bahiw. com
>>Bahrain Economic Development Board: www. bahrainedb. com
>>Bank of Muscat: www. bankmuscat. com