Market Highlights

• Bahrain’s economy grew by 4.9% in 2022 on the back of strong growth across the non-oil sector, its fastest growth in over nine years. However, as per recent estimates from Oxford Economics, the GDP is likely to taper to 2.2% in 2023 on account of a drop in oil production and prices, and a slowdown in the non-oil sector.
• As part of the government’s ongoing initiative towards diversifying the economy away from oil, a budget of BHD 1 billion was approved for projects to be undertaken during 2023 and 2024. Most of these projects are aimed at upgrading the current infrastructure and include the development of the Bahrain Metro, a sports city, the new National Assembly, the Muharraq Ring Road, and a revamped Salmaniya Medical Center. Along with these infrastructure updates, the Capital Trustees Board approved the development of the King Faisal Corniche at a budget of BHD 5 million. Once completed, the project will complement the expansion of The Avenues mall, which is anticipated to be completed in 2024.
• Whilst the country still has one of the highest debt-to-GDP ratios in the GCC, it has established itself as an important financial services and data centre hub in the region. As such, it remains a key hub for foreign investment; as per the Bahrain Economic Development Board, the country successfully attracted BHD 410 mn in direct investment during H1 2023.
• The country also ranked second in the Arab world on the Logistics Performance Index 2023 released by the World Bank. 

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