Bahrain foreign investment boom

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Bahrain Finance and National Economy Minister His Excellency Shaikh Salman bin Khalifa Al Khalifa has announced an increase in foreign investments in the Kingdom, thanks to the qualitative initiatives launched by the government to provide an attractive business environment.

Shaikh Salman stated that the balance of foreign investments reached BD15.9 billion ($42.2 billion) at the end of the third quarter of the previous year, marking a 19.4% increase in just one year.

His response came in answer to a parliamentary question submitted by MP Ahmed Qarata.

The Minister affirmed that it adopts various methods and mechanisms to address different economic challenges and changes, including continuously reviewing and studies the most appropriate initiatives and programmes that can mitigate the negative effects resulting from these economic changes and challenges, regardless of their causes.

Regarding the policies and plans implemented by the Ministry to maintain the increased rates of economic growth and enhance Bahrain’s competitiveness in various economic and developmental sectors, the Minister highlighted that one of the government’s key steps to deal with the economic challenges caused by the COVID-19 pandemic was the launch of a financial and economic package worth more than BD4.5 billion ($11.9 billion) to support the most affected sectors, preserve citizens’ jobs, and position Bahrain favorably for economic recovery.

Shaikh Salman also highlighted the Economic Recovery Plan, which is based on five priorities and includes 27 programmes.

Priorities and programmes “The Ministry of Finance and National Economy takes an active role in monitoring the implementation of all priorities and programmes in coordination with the implementing government entities.

Continuous efforts are made to measure the results and their positive impact on the national economy,” he stated.

The Minister emphasised that analysing economic indicators and the performance of the global economy contributes to setting work priorities and taking necessary measures to address upcoming challenges and seize the opportunities they bring.

The ultimate goal is to achieve further growth and prosperity for the national economy while ensuring tangible improvements in the living standards of citizens.

Real growth rate The Minister stated that Bahrain’s economy achieved a real growth rate of 5.1% in 2022.

“It is expected that the economy will continue to register a real growth rate of 3% for 2023 and 2024, supported by non-oil sectors.

As for inflation rates, the consumer price index remained stable with a slight growth of 0.2% between January and November 2023 compared to the same period in 2022, thanks to the successful policies implemented by the Kingdom of Bahrain,” he stressed.

The Minister revealed that the local economy is witnessing expansion in non-oil sectors as a result of continuous efforts to promote economic diversification.

The contribution of non-oil sector to the gross domestic product at constant prices reached 83.6% during the third quarter of 2023.

“The financial projects sector continued to lead for the fourth consecutive time, with its contribution to the gross domestic product at constant prices estimated at 18.1%,” he concluded.