3.7pc growth in non-oil sector: EDB

Manama : Fuelled by an impressive 3.7 per cent growth in the non-oil sector, Bahrain recorded an overall economic growth of 3pc in 2016, a key report revealed yesterday. 

This according to the latest figures published in the Economic Development Board’s Bahrain Economic Quarterly also marks an acceleration over the 2.9pc pace recorded in 2015. 

The report also expects the non-oil growth in the Kingdom to remain above 3pc in 2017, despite ongoing regionwide fiscal consolidation. 

“2016 was an encouraging year for Bahrain’s economy. We continue to see resilience in the non-oil sector and this resilience helps to underpin the economic stability for businesses and investors in the Kingdom,” said Dr. Jarmo Kotilaine, Chief Economic Advisor to the EDB. 

Growth in the non-oil sector (up from 3.6pc in 2015), according to the  EDB report,  was driven by strong performances in the finance (one of the largest non-oil sectors, which grew 5.2pc during the year), construction (which grew 5.7pc) and social and personal services (which grew 9.1pc).

Infrastructure development also played a major role in the sector’s growth, the report said thanks to the GCC development fund which doubled the volume of active projects from US$1.6 billion in the first quarter of 2016 to US$3.2bn in February 2017. 

Besides, Bahrain has a priority programme of $32bn of infrastructure projects which are expected to continue to act as counter-cyclical growth drivers. These projects include the US$2.5bn ALBA Pot Line 6, an associated US$800m power station deal, the US$1.1bn airport expansion project and a new US$355m Banagas gas plant.

“This is important because the economic transformation taking place in the region is creating exciting opportunities for businesses in the Gulf the coming years,” said Dr. Jarmo Kotilaine, adding: “it is vital not just to maintain economic stability but also to continue to pursue the structural, legal and regulatory reforms that will make it easier for companies to access those opportunities.”