Bahrain is predicting a massive boost to the economy through radical reforms designed to woo new investors.

They are expected to double the commercial sector's contribution to the country's Gross Domestic Product (GDP).

Bahrain is slashing to just BD20 the cost of commercial registration for new businesses.

A new law may soon allow 100 per cent ownership of all commercial activities and red tape is being cut to speed up the introduction of new businesses.

The BD20 flat fee for commercial registration (CR) will be introduced next month, Industry and Commerce Minister Dr Hassan Fakhro announced yesterday.

The initiatives are being launched by the ministry and the Economic Development Board. They include the slashing of the number of business activities requiring advance approvals by two-thirds, from 1,800 to 650, Dr Fakhro told a Press conference at the Ritz-Carlton Bahrain Hotel and Spa.

He said a new Commercial Law, which may come into force next year, would allow foreign investors to operate without a Bahraini sponsor.

"Currently, 100 per cent ownership is allowed in all activities except trade and retail which require a 51 per cent Bahraini share," he revealed. "The new law will get rid of the sponsorship system in all activities."