Prosperity path

Bahrain set for one of Gulf’s strongest economic growth rates this year

TDT | Manama

Email : editor@newsofbahrain.com

Bahrain is on track for one of the Gulf ’s strongest growth rates in 2025, helped by lower interest rates, livelier oil output and steady diversification work.

It ranked second in the GCC for economic performance in 2024, behind the UAE, and is expected to repeat that standing next year.

Capital Economics pegs real GDP growth at about 3.4 per cent in 2026, citing higher crude production and firmer non-oil activity.

Refining

The Ministry of Finance and National Economy projects 4.4 per cent growth in the non-oil economy, which folds in refining.

Oil still pays the bills. Fitch Ratings says it provides more than 60 per cent of state income.

Capacity at the Sitra refinery rose from 267,000 barrels a day in 2023 to 300,000 in 2024, with a target of 400,000 by the end of 2025, according to S&P Global Commodity Insights.

Supply

Bahrain is looking to use shifts in global supply chains and its close ties with the United States to its advantage.

It counts among the region’s largest exporters of aluminium and steel.

It has also drawn the Gulf’s highest foreign direct investment as a share of GDP, a result linked by analysts to a competitive rule-set, lower running costs, a skilled workforce and a strong position on the map.