While continuing to encourage foreign investment, the government has acquired majority holdings in most of the country's principal enterprises that were formerly foreign held. The government offers substantial incentives for companies wishing to establish plants in Bahrain. With the exception of petroleum royalties, Bahrain does not tax either corporate or individual earnings.
As of 1999, the Bahraini government had no vehicle for reporting statistics on foreign investment. Some of the larger foreign-owned or controlled companies in 1999 included the following: Aluminum Bahrain and the Gulf Petrochemical Industries Complex, both joint investments controlled by several Gulf states; the Arab Shipbuilding and Repair Yard, owned by several Gulf states; and the Bahrain Telecommunications Company, 20%-owned by Cable and Wireless. There were at least 90 US companies operating in Bahrain in 1999, including Kimberly-Clark, Coca-Cola, Shaw Industries, and DHL.