Bahrain Reports 3.5% GDP Growth

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MANAMA: His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, chaired the weekly regular Cabinet meeting held today at Gudaibiya Palace.

At the beginning of the session, the Cabinet praised the outcomes of the meeting between His Majesty King Hamad bin Isa Al Khalifa and His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates. The Cabinet highlighted the importance of the meeting in further strengthening longstanding fraternal relations, built on decades of mutual trust and cooperation, describing them as a model for relations between brotherly nations. It also expressed appreciation for the UAE’s continued qualitative support to Bahrain, which has helped enhance the Kingdom’s ability to address challenges efficiently.

The Cabinet also underscored the significance of the meeting between His Majesty the King and UK Prime Minister Keir Starmer, as well as discussions held between the Prime Minister and the British leader on strengthening historic bilateral relations. The Cabinet expressed gratitude to the United Kingdom for its active role in addressing recent Iranian attacks that, it said, violate international law, and welcomed London’s reaffirmation of support for Bahrain’s security and stability.

The Crown Prince and Prime Minister directed the necessary legal and constitutional procedures to be taken to submit a draft law covering the payment of Bahraini employees’ salaries in the private sector for April through the Unemployment Insurance Fund, as part of efforts to support the private sector, preserve national employment, and sustain economic activity.

The Cabinet also welcomed the Central Bank of Bahrain’s announcement, in line with the Crown Prince and Prime Minister’s directives, launching a loan deferral and liquidity support programme aimed at strengthening Bahrain’s economy and financial sector. It further praised the signing of a currency swap agreement between the Central Bank of Bahrain and the Central Bank of the United Arab Emirates.

The Cabinet extended its appreciation to the Bahrain Defence Force, National Guard, Ministry of Interior, and all security and civil agencies for their efforts in safeguarding Bahrain’s sovereignty, security, and national interests. Reaffirming its position, the Cabinet strongly condemned recent Iranian attacks on Bahrain and the region, which it said threatened civilian safety and regional stability, stressing the importance of Iran’s full compliance with an immediate cessation of hostile actions and the reopening of the Strait of Hormuz.

The Cabinet then reviewed and approved several ministerial memoranda, including the quarterly economic report for 2025, which showed Bahrain’s real GDP growing by 3.5% year-on-year, driven by a 4.1% expansion in non-oil sectors. It also approved an investment protection agreement between Bahrain and the Swiss Federal Council, amendments to residency and nationality services regulations, and labour market indicators for Q1 2026, which showed progress toward national employment and training targets under the Labour Market Plan 2023–2026.

The Cabinet additionally reviewed responses to parliamentary proposals and noted reports on Bahrain’s participation in recent UN Security Council sessions on maritime freedom in the Strait of Hormuz, cooperation between the UN and Arab League, cooperation between the UN and GCC, a GCC-Jordan-Russia ministerial consultative meeting, and a GCC emergency tourism meeting addressing the impact of regional developments on the tourism sector.