Interview: Shaikh Khalid bin Abdulla Al Khalifa
By what means has Bahrain’s pursuit of economic diversification under the Bahrain Vision 2030 roadmap contributed to decreasing oil dependency?
SHAIKH KHALID BIN ABDULLA AL KHALIFA: Bahrain’s efforts toward economic diversification, which began well before the launch of Bahrain Vision 2030, have significantly reduced its reliance on oil revenue. By 2023 the non-oil sector contributed 83.9% to GDP, underscoring the success of this strategy. Key sectors such as financial services, tourism, manufacturing, logistics and ICT have been at the forefront of this transformation. These dynamic industries are not only generating high-value opportunities but also fostering sustainable job creation for Bahrainis.
Which key strategies and incentives are being implemented to attract foreign investors?
AL KHALIFA: Bahrain has adopted a range of key strategies and incentives to attract foreign investment. These include streamlined business registration and licensing processes, competitive tax rates, the allowance of 100% foreign ownership in most sectors, and a strong legal and regulatory framework. Coupled with advanced infrastructure and a skilled, adaptable national workforce, these initiatives have enhanced the investment climate. As a result, Bahrain has solidified its position as a preferred destination for foreign investors in the region, further bolstering its economic appeal.
How is Bahrain working to develop its tourism infrastructure, preserve cultural heritage and promote itself as a global tourism destination?
AL KHALIFA: In line with the ambitious targets set for the tourism sector under Tourism Strategy 2022-26, Bahrain is actively developing its tourism infrastructure and diversifying its offerings. We are expanding and modernising our airport and seaport, building new hotels, resorts and entertainment facilities, as well as investing in our rich cultural and heritage sites. We are committed to promoting Bahrain as a unique and attractive global tourism destination while also ensuring the preservation of our cultural identity through sustainable tourism practices.
In what ways is Bahrain addressing challenges and opportunities in the labour market?
AL KHALIFA: To promote private sector employment, the government has introduced a range of incentives and forged strategic partnerships, aiming to create more job opportunities for Bahrainis. The National Labour Market Plan 2023-26 provides a comprehensive roadmap for enhancing employment opportunities and workforce development. Substantial investment in skills development and training programmes, including the Skills Bahrain portal, ensure that the workforce is equipped to meet the demands of a rapidly evolving economy. Bahrain is also making significant strides in enhancing women’s participation in the workforce by implementing targeted policies and programmes, such as those spearheaded by the Supreme Council for Women, to support gender balance and inclusion.
What long-term strategies are in place to ensure the sustainability and resilience of Bahrain’s economy?
AL KHALIFA: Bahrain is implementing comprehensive long-term strategies to secure the sustainability and resilience of its economy in response to global shifts, such as digital transformation, green energy and climate change adaptation. By embracing digital transformation, Bahrain is investing in technologies such as artificial intelligence, financial technology and advanced manufacturing – all aimed at driving growth. Simultaneously, the country is prioritising the expansion of its green energy sector by focusing on renewable energy sources and enhancing energy efficiency, while embedding sustainable practices across various industries. Bahrain is also advancing its climate change adaptation agenda by reinforcing environmental policies and investing in climate-resilient infrastructure.
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