Bahrain economy grows

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain’s economy grew by 2.6% in real terms yearon-year (YoY) in 2024, supported by continued expansion and diversification efforts, according to preliminary data released by the Information and eGovernment Authority (iGA).

The report highlights a 3.8% growth in non-oil economic activities, which offset a 4.0% contraction in oil-related sectors.

In nominal terms, the Kingdom’s Gross Domestic Product (GDP) rose by 2.0% YoY, with non-oil sectors expanding by 3.3% and oil activities declining by 5.8%.

The Ministry of Finance and National Economy published the figures in its annual Bahrain Economic Report 2024, made available on its official website (www.mofne.gov.bh).

Pivotal role

Non-oil sectors continued to play a pivotal role in economic development, contributing 86.0% to the GDP in 2024.

The Information and Communication sector led the growth, surging by 12.3% YoY due to increased digital transformation and engagement.

The Professional, Scientific, and Technical Activities sector followed with a 9.5% growth, while Accommodation and Food Services grew by 5.9%.

Transport and Storage posted a 4.9% rise, and Manufacturing, the second-largest sector contributor, expanded by 4.5%.

Meanwhile, the Financial and Insurance Activities sector — the largest contributor to GDP — registered a 4.4% YoY growth, and the Wholesale and Retail Trade sector grew by 2.8%.

The report also noted a 5.7% YoY increase in inward Foreign Direct Investment (FDI) stock, reaching BD17.3 billion in 2024.

Global competitiveness

In terms of global competitiveness, Bahrain achieved notable rankings.

It placed first in the Arab world in the Business Perception Indicator in the Milken Institute’s Global Opportunities Index 2025, and ranked seventh globally in the Islamic Finance Development Report 2024 published by the Islamic Corporation for the Development of the Private Sector and the London Stock Exchange.

Additionally, Manama was listed in the Smart Cities Index 2025, issued by the International Institute for Management Development’s (IMD) World Competitiveness Center, ranking 36th out of 146 cities, surpassing several major global cities.