Economy to do better in fiscal 2017: Minister

Manama : Industry, Commerce and Tourism Minister Zayed bin Rashid Al Zayani yesterday expressed optimism about the Kingdom’s economy saying fiscal 2017 would be an improvement over last year as oil price forecast looks positive. 

Admitting that the Kingdom has already adjusted to the oil price slump, Al Zayani said, “Oil price is predicted to go up in the next two years. If not to the same levels seen before, at least the price could hit $70 per barrel in the next two years. This is what the experts have predicted, $55 per barrel on average for this year and $65 next year. Fiscal 2017 will be a challenging year but we know what to expect. In 2016, we had to deal with oil price shock but now it is something that we have adjusted to. We have learned how to deal with it.”

Speaking to the media at the Ministry of Industry, Commerce and Tourism premises in Manama, he said the Kingdom had taken a number of measures to diversify the economy from oil. Expressing optimism about regional and international economy, the minister said that Bahrain should look to the east and improve trade ties with countries like Japan, China and Singapore, adding that the Trump administration in America could do well despite the scepticism. 

“I am optimistic for many reasons, firstly, the US economy is doing very well. We are a dollar-based economy so that gives us the reassurance. Secondly, we have gone through the pains of the low oil price that has been around for almost 18 months, now it is heading to two years. I think we have learned how to adjust to it,” he said.

“I think the US will do better than what people expect them to do. Let’s see how the UK deals with the Brexit, which will have a ripple effect on Germany, France, Netherlands and other EU countries. We will probably need to look more to the east, towards China, Singapore, Japan, Korea, Russia. Russia has their own problems to deal with but I think if they manage to have a cordial relationship with US, we could have a more stable world. It is important to have these two countries on talking terms to drive the global economy,” he said. “We look forward to more prosperity in 2017 by improving the business landscape. We are here to support genuine investors and at the same time to put an end to those who try to manipulate the system. We will not take it lightly if we find consumer protection violations or abuse of industrial lands or tourism sector,” the minister said. 

On the role of the private sector he said, “The private sector makes up more than three quarter of the economy. That is why we are relaxing regulations, opening up to foreign investors, encouraging ease of doing business. We took a lot of the obstacles out of the system and we are moving more towards an open economy,” he said.