Derasat report lauds govt efforts to fast-track economic diversification

Bahrain has made substantial progress towards achieving both its ambitious Economic Vision 2030 targets, an in-depth report into the Kingdom’s economy revealed yesterday. The Bahrain Human Development Report, released by the Bahrain Centre for Strategic, International and Energy Studies (Derasat) in partnership with the United Nations Development Programme (UNDP), highlighted the Kingdom’s success in diversifying its economy and in recognizing the importance of environmental concerns. The report noted that the Kingdom’s progress towards its own 2030 targets, first set out in 2008, has been achieved while incorporating the global targets laid down in the UN Sustainable Development Goals of 2015.

Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Chairman of Derasat, said: “The authors of the report should be commended for their highly detailed analysis of the Bahraini economy. “Their findings are also welcome as they validate the many years of hard work from across the public and private sectors to deliver a more successful and inclusive economy for the people of Bahrain.” The report’s authors emphasized two areas crucial to the success of the Bahrain economy: diversification and sustainability.

The diversification of the economy has gathered pace as government-instigated reforms have encouraged the growth of sectors such as finance, technology, and logistics. Addressing environmental issues ensures the highest possible living standards for future generations. Achim Steiner, Administrator of the United Nations Development Programme, said: “Bahrain is a nation that enjoys very high levels of human development and yet like many other countries also faces challenges across the development spectrum.

“Bahrain’s economic vision 2030 already demonstrates a commitment to addressing those challenges and my hope is that this Human Development Report becomes an important touchstone for informing policymakers and partners alike in Bahrain.” Bahrain has always been at the forefront of change in the region, from being the first to discover oil in the GCC to establishing the region’s first banking system.

The Kingdom is now home to the biggest Islamic Finance industry in the region and has significantly pivoted away from being an oil-led economy. The broad base of the Bahrain economy is now reflected in the fact that the oil and gas sector represents only 18.4 percent of the economy. Financial services contribute 16.7pc of GDP and manufacturing 14.5pc. The success of Bahrain’s financial sector was a recurring theme in the report, as the Kingdom is now home to nearly 400 financial institutions, and the region’s first and biggest FinTech incubator, FinTech Bay.

The establishment of an excellent ICT infrastructure was also recognized as a key enabler of success across the broader economy.