Investment magnet : $6.8 billion FDI flows into Bahrain in 2023 as global investors flock to the Kingdom

Mohammed Darwish

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Kingdom of Bahrain has solidified its status as a preferred investment destination for both regional and global investors. In 2023, the country attracted an impressive $6.8 billion in foreign direct investment (FDI) inflows, marking a 148% increase from 2022, according to the World Investment Report 2024 issued by the United Nations Conference on Trade and Development (UNCTAD).

This surge has elevated Bahrain’s cumulative FDI balances from $36.2 billion in 2022 to $43.1 billion in 2023.

World average

By the end of 2023, Bahrain’s cumulative FDI balance approached 99.7% of its GDP, one of the highest percentages globally and 46.9% above the world average. Data from the Information and e-Government Authority shows that the leading contributors to Bahrain’s FDI portfolio are Kuwait (36%), Saudi Arabia (23%), and the UAE (10%).

Her Excellency Noor bint Ali Alkhulaif, Minister of Sustainable Development and CEO of the Economic Development Board, credited Bahrain’s competitive advantages and its status as a favored destination for investors seeking cost-effective operations and a strategic location for this exceptional FDI performance.

Flexible government

She highlighted the country’s flexible government, highly skilled bilingual workforce (fluent in Arabic and English), and financially open environment as key factors behind this success. Bahrain’s advanced legislative system and ongoing government support for economic diversification and growth through strategic economic plans have further enhanced its appeal as an investment hub.

The nation’s nominal GDP has grown from $11 billion in 2003 to over $43 billion in 2023, reflecting an average annual growth rate of 7%, surpassing the global average of 5%. In 2023, Bahrain’s financial services sector expanded, surpassing the oil sector as the largest contributor to real GDP by 17.8%.

Priority markets

Minister Alkhulaif emphasized that Bahrain will continue its efforts to attract more FDI from priority markets, supported by the “Bahrain Team.” The launch of the Golden License for Strategic Investments initiative has already drawn $2.4 billion in investments, encompassing nine major projects expected to create 3,000 job opportunities across various sectors.

These projects include the establishment of the first titanium factory in the region by Swiss company Interlink Metals & Chemicals, the National Bank of Kuwait’s new headquarters outside Kuwait, and investments by Bahraini technology company Beyon and Bahrain Marina Company