Cover of The Report: Bahrain 2019

The Report: Bahrain 2019

Despite its diversified economy, Bahrain has nonetheless faced pressures in recent years as a result of the 2014-15 drop in global oil prices. However, a multibillion-dollar aid package from other Gulf states and an accompanying fiscal adjustment plan, as well as growth following a partial oil price recovery and a major oil and gas discovery, offer hope for an economic turnaround in 2019.

By utilising technology to maximise value from existing reserves and investing in exploration, the energy sector is working to maintain and even increase levels of oil and gas production. These efforts will be given a significant boost by the recent discovery of a large-scale, unconventional oil and gas reserve, which could substantially boost output over the coming decades. The diversity of Bahrain's economy is due in large part to its well-established manufacturing industry, with the kingdom's aluminium segment a major driver of economic growth. Indeed, this is set to grow further in 2019 with the launch of a new pot line at national aluminium producer Aluminium Bahrain, which will increase its capacity by nearly half. Meanwhile, Bahrain continues to be a regional hub for financial services, underpinned by an experienced banking workforce and regulatory oversight from the Central Bank of Bahrain.

 

OBG & Bahrain