Bahrain takes the lead

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

Bahrain has emerged as the most diversified economy in the Gulf region, surpassing heavyweights like the UAE and Saudi Arabia, The Gulf Statistical Centre said this in its latest report.

This achievement is attributed to Bahrain’s reduced dependence on oil revenue.

The report highlights that an impressive 83.7% of Bahrain’s GDP now comes from the nonoil sector, marking the highest contribution in the GCC.

Following Bahrain, the UAE ranks second with a non-oil sector contribution of 76.4%, while Saudi Arabia trails at 73.7%. Oman and Qatar closely follow with contributions of 66.2% and 60%, respectively.

Kuwait lags behind with the lowest non-oil sector contribution at 49.6%. The Gulf Statistical Centre conducted a comprehensive review of the economies of the Gulf Cooperation Council (GCC) countries to compile this report.

Non-Oil Sector: Bahrain third in GCC

The Gulf Statistical Centre reports that Bahrain achieved the third-highest growth rate in the non-oil sector among GCC countries, recording a 4.4% increase in the third quarter of 2023.

Leading the region is the UAE with a growth rate of 5.7%, followed by Oman at 4.9%. Saudi Arabia, Kuwait, and Qatar follow with growth rates of 3.9%, 2.7%, and 0.6%, respectively.

“Non-Oil dominates GCC economy

In the GCC region, the non-oil sector takes the lead, comprising 70.9% of the total GDP, while the oil sector contributes 29.1%.

Among the key contributors to the GCC economy, oil and gas extraction represent 29.1%, followed by manufacturing at 11.5%, wholesale and retail trade at 8.5%, and public administration and defence at 7.8%.

Construction adds 6.6%, while financial and insurance activities contribute 6.1%. Real estate activities account for 5.3%, with other activities contributing 25.1% to the overall economy.

Manufacturing drives Bahrain

In Bahrain, the manufacturing sector holds the largest share of the GDP, comprising 19.9%, followed by financial intermediation at 16.8%, and oil and gas extraction at 16.3%.

Public administration and defense contribute 8.3%, while construction makes up 7.1% of the GDP. Additionally, education, health, and social work collectively contribute 7.8%, while wholesale and retail trade, hotels, and restaurants contribute 5.3%. Other activities account for 18.3% of Bahrain’s GDP.

The GCC region as a whole is also making strides in diversification, with the non-oil sector playing an increasingly important role in driving economic growth.