Bahrain’s economy “well placed”

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Bahrain’s banks, finance firms and service companies could be among the main gainers from the free trade deal between the GCC and the United Kingdom, Redha Faraj has said.

Faraj, deputy head of the Shura Council’s Financial and Economic Affairs Committee, said the deal would give Bahrain wider room for trade, joint work and investment with Britain, helped by long-standing ties and similar business systems.

‘Relations between Bahrain and Britain are historic and strong, and there is a high level of understanding between the two sides, which makes co-operation easier,’ he said. ‘I expect this agreement to bring important gains, especially in finance, banking and services, given the closeness of the systems and foundations on both sides.’

Faraj said Bahrain was part of the world economy and could not be cut off from external shocks, but he argued that the kingdom had shown enough room to adapt through the Covid years, recent economic strain and the latest regional crisis.

He said the fourth session of the Shura Council had shown a change in the thrust of lawmaking, with work now leaning more towards growth, sound finances and long-term planning, after earlier years had aimed mainly at stirring the economy.

Bahrain, he said, had reached a more mature economic stage, with much of the legal base for growth already in place. The next task was to pass laws that widen non-oil income, add to state revenue and make public spending work better, while keeping citizens’ rights intact.

‘Most of the economic laws discussed were concerned with moving the economy through partnership between the government, the private sector and residents,’ he said. ‘The two main aims are to create suitable jobs for citizens and to deal seriously with public debt, because the lower the debt, the better able the state is to provide more services and gains for citizens.’

Faraj said the recent crisis linked to Iranian attacks had shown Bahrain’s readiness to deal with sudden shocks. He praised the work between the Bahrain Defence Force, the Interior Ministry and security bodies, saying they had acted as one team.

Faraj said the banking and finance field remained one of Bahrain’s main strengths, and that the state had worked to protect it as far as possible through calm and measured steps.