The manufacturing sector is the second-largest contributor to non-oil GDP, behind financial services. Some of the kingdom’s key industrial players have expanded their production capacity in recent years, significantly bolstering heavy industry and downstream potential, most notably in the aluminium segment. Aluminium is Bahrain’s biggest non-oil export, and Aluminium Bahrain is integral to overall…
The construction and real estate sectors are important contributors to Bahrain’s GDP, yet in the years preceding the pandemic both sectors displayed erratic growth due partly to oil price instability and the government’s fiscal consolidation programme. However, recent legislative amendments and strategic announcements are expected to reinvigorate the closely linked sectors and support the central…
Bahrain is an archipelagic nation, with most of its economic activity taking place across its four main interconnected islands: Bahrain, Al Muharraq, Sitra and Umm Al Nasan. In the planning stages as of mid-2022, a number of big-ticket transport infrastructure projects are set to facilitate a better flow of people, goods and services between – and across – the country’s borders. Looking ahead,…
Bahrain has targeted the tourism sector as a top driver of growth and diversification as the economy recovers from the Covid-19 pandemic. Indeed, as the only island nation in the Middle East and home to large-scale events such as the Formula 1 Bahrain Grand Prix event, the country is well positioned to meet these goals. It has long been a top destination for travellers from Saudi Arabia – attracted…
After several years of stasis due to the Covid-19 pandemic, the kingdom’s energy industry is seeing a renewed pace of activity. Though Bahrain does not produce as much oil as its larger neighbours, the energy industry remains a vital part of the national economy. This has been helped by a large-scale oil and gas discovery in 2018 and the upgrade of the country’s main refinery in Sitra. Bahrain…
Bahrain’s capital markets have faced headwinds in recent years, as the world has confronted the Covid-19 pandemic, volatility in commodity markets and the fallout from Russia’s invasion of Ukraine. Despite these challenges, the kingdom continues to exercise an important influence on regional capital markets, attract international investors and provide a sound platform for listed companies to raise…
Bahrain is home to one of the region’s most vibrant financial sectors, with financial services rivalling oil and gas in terms of economic importance. Indeed, by late 2021 the financial sector had overtaken hydrocarbons as the largest contributor to the economy. The Islamic finance sector is also strong, with Bahrain ranking fourth out of 135 countries and second in the MENA region in terms of Islamic…
A wave of labour and regulatory reform is under way in Bahrain, as is an ambitious programme that aims to attract $30bn in investment in the tourism, transport, health, education, construction and real estate sectors. Meanwhile, the Fiscal Balance Programme launched in late 2018 has been updated – taking into account the Covid-19 pandemic’s impact – with a new target of balancing the budget by…
Bahrain has long taken a liberal approach to international trade and investment policy, which it conducts largely in line with its partners in the GCC, especially neighbouring Saudi Arabia. Historically, its closest foreign relations outside the region have been with the US and the UK. Initially built around the defence industry, these ties have expanded over the years to areas such as electrical machinery…
– In June the GCC and the UK officially launched negotiations for a free trade agreement – The deal is expected to boost renewable energy and food security in the bloc – The launch comes as the GCC looks to attract investment for diversification plans – A final agreement would expand the GCC’s global trade footprint As part of plans to expand and diversify its global trade partners,…
