Bahrain’s FDI surges by 19.4% amid regional economic partnerships

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Bahrain has witnessed a significant increase in foreign direct investment, according to figures revealed by the Minister of Finance and National Economy, His Excellency Shaikh Salman bin Khalifa Al Khalifa.

Responding to a parliamentary question submitted by MP Ahmed Qarata, Shaikh Salman disclosed that foreign investment grew by 19.4% to BD15.9 billion ($42 billion) in 2023 compared to the previous year.

This surge has been attributed, as per the Minister’s response, to Bahrain joining regional economic partnerships aimed at industrial integration and reducing import dependency.

As part of the Integrated Industrial Partnership Initiative, Bahrain has forged partnerships with other states including the UAE, Egypt, Jordan and Morocco.

Five joint project agreements valued at over $2.2 billion have been signed under this initiative focusing on sectors like manufacturing, logistics and renewable energy, the Minister stated.

The strong investment growth is expected to strengthen Bahrain’s competitive position globally according to the minister, who affirmed that the national economy is forecast to grow 3% in 2024.

The non-oil sectors have experienced significant expansion, with their contribution to the gross domestic product (GDP) reaching an impressive 83.6% during the third quarter of 2023, as revealed by the Minister.

Notably, the financial projects sector has been at the forefront of this growth, contributing approximately 18.1% to the GDP.

Shaikh Salman also highlighted Bahrain’s positive economic performance, citing a growth rate of 5.1% in constant prices recorded in 2022.

Additionally, successful policies implemented by Bahrain have stabilised the consumer price index, resulting in a slight growth of 0.2% between January and November 2023, compared to the same period in 2022, the Minister underlined.