Government Reports Progress in Tourism, Legal Reforms, and Fiscal Management

The Bahraini government has outlined key achievements across the tourism sector, legislative development, and financial management, reflecting the Kingdom’s ongoing commitment to economic growth, social progress, and sustainable development.

Tourism Sector Developments
The government reported significant advancements in the tourism sector:

• The Bahrain International Exhibition Centre was inaugurated, providing a modern hub for international conferences and exhibitions and boosting the Kingdom’s business tourism profile.
• The Bahrain International Circuit was upgraded, continuing to host major global sporting events, promoting sports tourism, and supporting the local economy.
• Al Dana Theatre opened as a contemporary cultural and entertainment venue, creating new opportunities for artistic expression and major events.

Several international hotels were launched, expanding hospitality capacity and contributing to growth in the tourism sector.

Legislative Achievements
The government highlighted the issuance of over 2,400 decrees and laws, including key regulations aimed at supporting economic and social development. Important legislation includes:

• Bahrain Chamber of Dispute Resolution Law
• Cloud Computing Services Law for foreign entities
• Consumer Protection Law
• Real Estate Sector Regulation Law
• Personal Data Protection Law
• Anti-Commercial Fraud Law
• Family Law
• Procurement Law
• Telecommunications Regulation Law

These measures demonstrate Bahrain’s commitment to the rule of law, transparency, justice, and creating a supportive legal environment for sustainable development and investment.

Financial Management and Economic Initiatives
Bahrain has pursued several initiatives to strengthen financial stability:

The Financial Balance Program, launched in 2018, achieved four out of six main targets, including reducing government operating expenses, enhancing spending efficiency, simplifying government procedures, increasing non-oil revenues, and introducing an optional retirement program for eligible government employees.

Efforts are underway to improve the efficiency of the Electricity and Water Authority and to ensure fair and targeted government support for citizens.

In response to global economic challenges such as COVID-19 and oil price fluctuations, Bahrain launched updated financial initiatives in 2021, completing six out of eight planned measures. These include increasing contributions from government-owned companies, reducing operational expenses, enhancing government revenue initiatives, and improving project budget efficiency.

Government Spending and Revenue

Recurring government expenditures grew from BD 567 million in 2000 to BD 2.045 billion in 2014.

From 2014 to 2024, recurring expenditures were successfully reduced by 12%, while non-oil revenues increased from BD 489 million in 2018 to BD 1.2 billion in 2024, a growth of 147%.

The government continues to work toward fully covering primary recurring expenditures with oil revenues while maintaining citizen purchasing power.

The total fiscal deficit for 2024 reached BD 1 billion, with public debt interest accounting for 92% (BD 945 million). The public debt-to-GDP ratio rose to 109% and could increase further without measures to reduce it.

Citizen Support and Legislative Cooperation

The Cabinet, in coordination with the legislative authority, decided not to change electricity and water tariffs for the first and second consumption tiers for citizens’ primary residences and postponed revising support mechanisms for further study.

Several initiatives were approved to ensure financial sustainability while maintaining citizen support, reflecting constructive cooperation with the legislative authority through objective discussions to serve the public interest.