Overview

Transport infrastructure projects position Bahrain as regional hub
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Bahrain’s transport sector is pivotal in the island kingdom’s economic landscape, driving trade and commerce, logistical connectivity and tourism growth. The strategic location of Bahrain in the heart of the GCC has historically positioned the country as a critical hub for regional trade. In 2023 the sector witnessed significant development, bolstered by robust government support, rising private…

Overview

Bahrain infrastructure construction prime for investment
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Bahrain’s construction and real estate sectors have become a major focus in the kingdom’s drive to diversify its economy. The industries are bouncing back strongly from a number of challenges in recent years, including the Covid-19 pandemic-related slowdown, supply chain disruptions and cost volatility. Global conflict and uncertainties have also affected the market, while inflation and higher…

Overview

Smart industry initiatives in Bahrain support local businesses
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While oil and gas may be the first industry that many people associate with the Gulf, the non-oil sector is by far the most dominant component of Bahrain’s economy. In 2023 the non-oil sector was responsible for a record 83.9% of the kingdom’s GDP, and industry accounted for around 14% of the overall economy that year. This category stretches from the giant aluminium plants of Aluminium Bahrain…

Overview

Bahraini government initiatives to enhance ICT sector competitiveness
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In addition to driving economic diversification and innovation, Bahrain’s expanding ICT sector is indicative of the country’s commitment to making its economy more competitive globally. With a young, tech-savvy population, and a government dedicated to investing in digital infrastructure and upskilling local talent, Bahrain has become an attractive location for technology start-ups, drawing in…

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Bahrain's digital innovation improves education and health care outcomes
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The health care and education systems in Bahrain have improved significantly over the last six decades. The kingdom brought forth basic compulsory education in 1919 and a health-for-all policy in 1959, which expanded the two sectors substantially. The government introduced a universal health insurance scheme, set to be launched in early 2025, which will further extend coverage and support service improvements.…

Overview

Bahrain's tax landscape matures with corporate income tax and e-invoicing updates
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Bahrain remained a tax-free jurisdiction until 2017, when the kingdom introduced excise tax – followed by the implementation of value-added tax (VAT) two years later. The country’s tax landscape continues to evolve, with a number of other notable tax and reporting regulations launched in recent years. Among these, a domestic minimum top-up tax (DMTT) law will take effect for Bahrain entities that…

Overview

Bahrain's expanding tourism sector supports economic diversification
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Bahrain’s strategic location, business-friendly climate and increasingly diversified economy have helped the island country emerge as an appealing destination for international investors in recent decades. Looking ahead, the kingdom’s proactive approach to economic reform and stable governance position it for ongoing expansion in the coming years. As the global economy continues to recover from…

Overview

Bahrain's shift from hydrocarbons boosts non-oil sector growth
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Buoyed by a vibrant private sector and increasing interest from foreign investors, Bahrain’s economy is on an upward trajectory. Relatively low inflation has added to the kingdom’s appeal as a place to do business, while interest rates were lowered successively in September and November 2024 to 5.25% (see Banking chapter). Indeed, an advanced financial services sector provides a strong foundation…

Overview

Bahrain incorporating sustainability to achieve environmental goals
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Under Bahrain Economic Vision 2030 the kingdom has sought to create a new paradigm for economic growth, reflecting the country’s diversification away from hydrocarbons and its growing commitment to environmental preservation. These efforts span various sectors and are guided by national policies, international partnerships and a commitment to global treaties and sustainability frameworks. Alongside…

Overview

Bahrain financial services thrive amid global economic challenges
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Bahrain has worked hard over the years to position itself as a global financial services centre. The financial sector is the highest contributor to GDP by sector, and its development is integral to the success of national strategies such as Bahrain Economic Vision 2030 and the Economic Recovery Plan (ERP). Bahrain is also a globally competitive market in Islamic banking, with the segment witnessing…