Bahrain's Foreign Worker Remittances Show Slight Dip in First Nine Months of 2024
TDT | Manama
Email : editor@newsofbahrain.com
Official data reveals a modest decrease in remittances sent by foreign workers in Bahrain during the first nine months of 2024, compared to the same period in 2023. A total of BD 726.9 million (approximately US$1.9 billion) was remitted, marking a 1.1% decline from the BD 735 million recorded in 2023. Despite this slight drop, the figures remain stable, particularly given that the number of foreign workers in Bahrain exceeded 631,000 by the end of June.
This stability is significant in light of Bahrain’s open policy regarding financial remittances. The government does not impose restrictions or taxes on these transfers and has consistently rejected proposals to introduce such measures. This policy, alongside favorable macroeconomic conditions, helps maintain a large portion of foreign currency reserves within the Kingdom.
Bahrain's balance of payments has shown consistent improvements in recent years, largely driven by higher oil prices and the increased value of non-oil exports, particularly aluminum. This positive trend supports Bahrain's decision to peg its dinar to the US dollar.
The current account surplus decreased to BD 609.4 million in the first nine months of 2024, a drop of BD 159.4 million (approximately 20.7%) from BD 768.8 million in 2023. Oil exports totaled BD 3.39 billion, slightly down from BD 3.43 billion in 2023, while non-oil exports remained steady at BD 3.46 billion.
Oil imports saw a 5.8% decline to BD 1.93 billion, while non-oil imports rose by 1.1% to BD 3.92 billion. Net services saw a significant 12.1% increase, reaching BD 1,251.6 million.
The slight decline in remittances, coupled with Bahrain’s overall positive economic performance, suggests that the Kingdom remains in a healthy financial position. The government’s commitment to its open remittance policy will continue to play a key role in maintaining this stability.
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