Bahrain Overview
Market info
Bahrain Overview
The Kingdom of Bahrain–one of the most diverse economies in GCC has successfully added many feathers to its cap. A country that has traditionally been a pearl hub, paved the way for an oil economy, and is now steering towards a sustainable economy
BAHRAIN- the Emerging Business Destination in Arab World for the Renewables
Pioneering a diversified economy
The Kingdom of Bahrain–one of the most diverse economies in GCC has successfully added many feathers to its cap. A country that has traditionally been a pearl hub, paved the way for an oil economy, and is now steering towards a sustainable economy
Robust economy
As per the latest data from Information and eGovernment Authority, Bahrain’s GDP growth is driven by the expansion in the non-oil sector while the oil sector showed a decline. The Ministry of Finance and National Economy has projected an annual real GDP growth of 2.6% in 2023 driven primarily by the non-oil sector which is pegged to grow at 3.4%. As for 2024, real GDP growth is estimated to accelerate by 3.5%, with the non-oil sector experiencing a growth of 3.9%. The number speak for itself. In Q32023 the country’s GDP grew by 2.5% YoY driven by a 4.5% expansion in the non-oil sector. The acceleration in the non-oil sector is a result of the ongoing diversification efforts. Segments like hospitality, finance, manufacturing, government services, transportation, communication, construction, real estate, business activities, social and personal activities and Trade are driving the growth in the country.
Attractive Investments Destination for FDI
Bahrain’s conducive investment policy and stable economy make it an attractive destination for global investors. The country’s business-friendly atmosphere and liberal approach allowing for 100 percent FDI, is an added advantage. Bahrain’s Foreign Direct Investment (FDI) saw a 5.8% jump in inflows in 2022. As per the FDI provisional statistics data FDI touched $34.48 billion against $30.3 billion in 2021. Electricity (including renewables), gas steam, and air conditioning supply, manufacturing and financial & insurance segments attracted the maximum FDIs as per the Information & eGovernment Authority. Segments like logistics, education, healthcare, real estate, tourism, and ICT sectors also received FDI inflow.
Transitioning towards non-oil economy
Bahrain is one of the first Middle Eastern oil economies to steer towards a non-oil economy–among the first to transition to renewable energy.
Financial hub
The kingdom is the financial hub of the Middle East. The robust finance segment contributes 17 percent to the country’s GDP. The segment comprises over 360 local, regional and global financial institutions.
