Economy
From The Report: Bahrain 2018
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The kingdom of Bahrain, renowned for its open markets and one of the most vibrant financial industries in the region, has faced economic headwinds in recent years. Lower oil prices have affected the many corporates that have chosen Manama as a base for their regional operations, and a stubborn fiscal deficit has resulted in a record-high level of public debt. The government has responded with a process of financial adjustment that is slowly narrowing the fiscal gap, but its longer-term solution to the economic challenges it faces rests on wider reform initiatives that aim to build on the kingdom’s already relatively diversified economy.

This chapter contains an interview with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board; and Mahmood Al Kooheji, CEO, Mumtalakat.

Articles from this Chapter

Overview

No plan too small: The country demonstrates its value with a record year of inward investment and an oversubscribed debt issuance
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The kingdom of Bahrain, renowned for its open markets and one of the most vibrant financial industries in the region, has faced economic headwinds in recent years. Lower oil prices have affected the many corporates that have chosen Manama as a base for their regional operations, and a stubborn fiscal deficit has resulted in a record-high level of public debt. The government has responded with a process of financial adjustment that is slowly narrowing the fiscal gap, but its longer-term solution…

Interview

Mindful development: Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board (EDB), on supporting non-oil growth
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Interview:Khalid Al Rumaihi What infrastructure is being implemented to generate sustainable economic growth? KHALID AL RUMAIHI: In terms of hard infrastructure, there are a number of major tourism-related projects we expect will support an expansion of the role that the tourism sector plays in Bahrain’s economy. Strong tourism infrastructure will not only bring in more visitors and encourage them to stay for longer, it will also have positive impacts on other areas, including transport…

Interview

A self-sufficient model: Mahmood H Alkooheji, CEO, Mumtalakat, on a resilient approach in a challenging economic environment
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Interview:Mahmood H Alkooheji As a holding company with a wide array of legacy assets in Bahrain, how can you describe the role of Mumtalakat in the local economy? MAHMOOD H ALKOOHEJI: Mumtalakat helps to grow the wealth of Bahrain through investments in prospective and successful companies. We also play an important role in the overall growth of the kingdom’s economy, with stakes in 30 local companies, creating more than 13,400 direct employment opportunities. At the same time we support…

Analysis

Balancing act: The state juggles calls for public sector wage increases while encouraging citizens to consider private sector employment
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Bahrain’s efforts to narrow its fiscal deficit is taking place across a number of fronts. On the revenue side of the equation the awaited introduction of value-added tax is expected to have the single-biggest impact over the next two years. In terms of cutting costs, the ongoing reduction of energy subsidies is garnering considerable attention, as Bahrainis become accustomed to paying near-market prices for the first time. PUBLIC WAGES: At the conclusion of its 2017 Article IV Consultation…

Analysis

Thinking big: Small businesses support GDP and private sector employment, and the government is helping them develop further
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Small businesses play an important and growing role in Bahrain’s economy. According to the Labour Market Regulatory Authority, more than 90% of licensed companies had less than 10 employees in 2016 and approximately 98% of them employed less than 50 people each. The activity of this prominent part of the economy has become easier to track in the last decade: the Ministry of Industry, Commerce and Tourism (MICT) established a working definition of small and medium-sized entities (SMEs) in…

Analysis

Money to Manama: Investment from abroad plays a substantial role in the economy
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Bahrain has been a regional magnet for foreign direct investment (FDI) for decades. The accumulation of foreign capital over many years means that, relative to the size of the economy, it figures more prominently on the national balance sheet than in any other GCC state: according to the June 2017 “Economic Quarterly” report by the Economic Development Board (EDB), in 2016 total inward FDI stock stood at around $228.6bn. That equalled nearly 90% of GDP, compared to a global average of…