Successful spending rationalisation measures introduced in the wake of the oil price drop have helped to reduce the country’s fiscal deficit, while revenue enhancing initiatives such as the implementation of value-added tax are expected to further reduce it over the medium term. Meanwhile the kingdom has maintained its focus on economic diversification initiatives. Manama remains a leading financial centre in the region, and the sector continues to form a major component of Bahrain’s non-oil economy, with a GDP contribution exceeding 17% in 2017. Manufacturing has also emerged as another major non-oil growth driver, with Bahrain home to one of the largest aluminium smelters in the world. Moving forward, the non-oil sector will continue playing a major role in the country’s growth with Bahrain’s Economic Development Board expecting it to expand by 3.9% in 2018.