Economy
From The Report: Bahrain 2023
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Bahrain’s economy rebounded from the impact of the Covid-19 pandemic and more recently successfully avoided the worst of global inflationary pressure, largely due to the fact that its currency, the dinar, is pegged to the US dollar. Bahrain’s recovery was also aided by forward-thinking policy formulation. While the country faced economic headwinds following the global drop in oil prices in 2014, a $10bn financial aid initiative from Kuwait, Saudi Arabia and the UAE in 2018 helped stabilise the economy and enabled the government to embark on a major fiscal reform programme. In light of economic challenges related to the pandemic, volatility in energy markets and the fallout from Russia’s invasion of Ukraine, deadlines for macroeconomic targets such as eliminating the fiscal deficit have been postponed. This has allowed key public and private operators to reset to new realities and refocus on achieving the goals of Bahrain Economic Vision 2030.

This chapter contains interviews with Khalid Humaidan, Chief Executive, Bahrain Economic Development Board; Maha Mofeez, Chief Executive, The Labour Fund (Tamkeen) and Hala Al Ansari, Secretary-General, Supreme Council for Women. 

Articles from this Chapter

Overview

Sustainable growth: Medium- and long-term development plans implemented to guide efforts to facilitate economic diversification
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Bahrain’s economy rebounded from the impact of the Covid-19 pandemic and more recently successfully avoided the worst of global inflationary pressure, largely due to the fact that its currency, the dinar, is pegged to the US dollar. Bahrain’s recovery was also aided by forward-thinking policy formulation. While the country faced economic headwinds following the global drop in oil prices in 2014, a $10bn financial aid initiative from Kuwait, Saudi Arabia and the UAE in 2018 helped stabilise the…

Analysis

Local talent: New regulations aim to educate and train Bahrainis in efforts to boost domestic participation in the labour force
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The launch of the National Labour Market Plan 2021-23 represents the government’s decades-long effort to improve employment opportunities and conditions for workers in Bahrain. A plan detailing required policy amendments and the schedule of launch dates for strategic initiatives was inaugurated in 2004 to establish synergies between labour market and education development programmes. Both the Labour Market Regulatory Authority (LMRA) and the Labour Fund (Tamkeen) were established in 2006. The LMRA…

Interview

Appetite for impact: Khalid Humaidan, Chief Executive, Bahrain Economic Development Board (Bahrain EDB), on attracting investment and supporting diversification
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Interview:Khalid Humaidan In what ways can investment support Bahrain’s long-term diversification strategy? KHALID HUMAIDAN: The Bahrain EDB surpassed its target of $1bn in direct investment in 2022. Investment not only stimulates robust economic growth, but also creates value-added opportunities, leading to more sustainable growth across various sectors. Consequently, higher levels of investment contribute to paving the way for a more competitive economy. The objectives of the Bahrain…

Analysis

Positive outlook: Surpluses from oil revenue are enhancing regional integration and economic diversification among GCC countries
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While 2022 was a year of global economic uncertainty fuelled by inflation, geopolitical crises and supply chain insecurity, the Middle East witnesseda second consecutive year of economic growth, with countries in the region investing in new technologies and projects that could herald greater integration in the years ahead. In April 2023 the IMF’s “World Economic Outlook” projected that global GDP expansion would slow from 3.4% in 2022 to 2.8% in 2023. Oil-exporting countries in the Middle…

Interview

Streamlining efforts: Maha Mofeez, Chief Executive, The Labour Fund (Tamkeen), on developing human capital and expanding opportunities
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Interview:Maha Mofeez What strategies and policies could be implemented to ensure that students and workers gain the skills required by the future labour market? MAHA MOFEEZ: Tamkeen’s strategy cycle for the years 2021-25 was developed to cater to the unique market requirements. It focuses on incentivising positive changes, such as enhancing productivity by enabling high-potential sectors, encouraging business model changes, supporting nationwide projects that generate economic impact, and…

Interview

Agile solutions: Hala Al Ansari, Secretary-General, Supreme Council for Women (SCW), on the implementation of flexible work policies to promote women’s inclusion in the workforce
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Interview:Hala Al Ansari To what extent are more flexible policies helping to reconcile business and social needs in Bahrain? HALA AL ANSARI: One of the key drivers for achieving both family stability and work-life balance is the implementation of flexible work policies, including the adoption of remote work practices. These measures have been found to significantly enhance productivity, efficiency and overall organisational performance. Bahrain took measures to promote the active engagement…

Analysis

Ease of transfer: A number of remittance-focused start-ups and other players are expanding operations in emerging markets Ease of transfer
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Financial technology (fintech) firms are gaining market share that was formerly the preserve of established remittance service providers. Remittances have grown in importance in recent years and today constitute the largest source of foreign income for many developing economies. They also tend to be countercyclical, increasing during economic downturns or natural disasters when other capital flows generally dwindle. Growth in the segment has gathered pace, with the importance of remittances as a…