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.
Despite ongoing fiscal challenges, Bahrain’s economy proved resilient throughout 2019, with the World Bank projecting growth of 1.8%. While expansion of the non-oil economy is expected to slow from 2.5% to 2.2%, the oil sector is due to move back into the black (0.2%), reversing the 1.2% contraction recorded the previous year.
In a bid to further incentivise growth in the tourism sector, Bahrain has unveiled a new scuba diving attraction.
Bahrain is capitalising on the recent visit of Narendra Modi, Prime Minister of India, with the two countries signing a raft of collaboration agreements amid ongoing economic cooperation.
Bahrain has unveiled a series of new infrastructure initiatives in a bid to bolster current transport capacity and fuel the country’s wider economic growth.
Significant progress has been made on two mixed-use real estate projects being built in Bahrain’s north-east, as the kingdom looks to major developments to help unlock its economic potential.
Bahrain has continued to incentivise growth in financial technology (fintech) following the introduction of new regulations that will allow lenders to expand and upgrade their digital offerings.