MANAMA: Mahmood Rafique, Editor: The Kingdom of Bahrain’s financial services sector has emerged as the top contributor to real GDP at 17.3%, ranking ahead of the oil sector, followed by the Crude Petroleum & Natural Gas Sector at 17.10% and the Government Services Sector at 14.10%.
In its overview of the local economy for Q2 issued by the Bahrain Chamber of Commerce and Industry (BCCI), stated that real GDP grew by 2.0% in the Kingdom of Bahrain in Q2 2023 YoY, driven by 2% growth in the non-oil sector, and 2.2% growth in the oil sector.
The sectors that witnessed the highest real growth rates are Transport and Communication at 13.3%, Hotels and Restaurants at 9.6% and the Real Estate and Business Activities at 4.9%.
A long-term plan to shift Bahrain’s economy from oil-based to knowledge-based. The vision focuses on four pillars: sustainability, fairness, competitiveness, and identity.
Bahrain’s National Employment Program (NEP): A government initiative that provides training, career guidance, and job opportunities for Bahraini citizens. The NEP targets sectors such as healthcare, education, and construction.
Bahrain’s Innovation and Technology Hub: A project that aims to foster a culture of innovation and entrepreneurship in Bahrain. The hub offers facilities, services, and programs for startups, SMEs, and corporates in the fields of artificial intelligence, blockchain, cloud computing, and cybersecurity.
A summary of Bahrain’s key economic indicators, such as GDP, inflation, unemployment, trade balance, foreign reserves, and public debt. The indicators show the performance and outlook of Bahrain’s economy.
A long-term plan to shift Bahrain’s economy from oil-based to knowledge-based. The vision focuses on four pillars: sustainability, fairness, competitiveness, and identity.
Bahrain’s National Employment Program (NEP), a government initiative, provides training, career guidance, and job opportunities for Bahraini citizens. The NEP targets sectors such as healthcare, education, and construction.
Bahrain’s Innovation and Technology Hub, a project that aims to foster a culture of innovation and entrepreneurship in Bahrain. The hub offers facilities, services, and programs for startups, SMEs, and corporates in the fields of artificial intelligence, blockchain, cloud computing, and cybersecurity.
Bahrain and GCC countries have decreased by 5% in Q2 2023 YoY, from 2.1 billion USD in Q2 2022 to 2 billion USD in Q2 2023. Saudi Arabia retains its position as Bahrain’s top export partner, while China retains its position as Bahrain’s top import partner.
The IMF forecasts an increase in the Real GDP in the Middle East and Central Asia from 2% in 2023 to 3.4% in 2024.
Bahrain ranked first in financial attractiveness on the Airinc Surveys Global 150 Cities Index 2023. Bahrain’s FDI increased by 9.7% in 2022.
Bahrain’s real GDP grew by 4.089% year-on-year in December 2022, driven by the recovery of the non-oil sector and the diversification of the economy.
Bahrain’s foreign direct investment inflows increased by 9.7% from $1,779 million in 2021 to $1,951 million in 2022, reflecting the attractiveness of Bahrain as a regional hub for business and innovation.
The financial sector contributed 18.6% of Bahrain’s GDP in 2022, making it the largest non-oil sector in the economy. Bahrain has a well-developed banking and Islamic finance industry, as well as a leading position in financial attractiveness.
Trade balance: Bahrain had a positive trade balance of $1,980 million in Q2 2023, with exports exceeding imports by 35%. The main export commodities were aluminum products and iron ores, while the main import commodities were aluminum oxide and gold.
The total number of insured employees in the labor market increased by 3.3% year-on-year in Q2 2023, reaching 617,233. The number of Bahrainis in the private sector increased by 1.1%, while the number of non-Bahrainis increased by 4.1%.
China is still Bahrain’s top import partner with a total import value of 518 million USD. The top imported commodity was smartphones, with a total value of 54 million USD. This commodity accounts for 10% of total imports from China.
Brazil was Bahrain’s second largest import partner in Q2 2023, with the total value of imports reaching 430 million USD. The top imported commodity was non-Agglomerated Iron Ores and Concentrates, valued at 404 million USD, and it accounts for 94% of total imports.
The United Arab Emirates was Bahrain’s third largest import market, with a total import amount of 401 million USD. The top commodity imported was Gold Ingots at 164 million USD and it accounts for 41% of imports from the UAE.
Australia was the fourth top import partner to Bahrain with an imports value of 320 million USD. The top imported commodity was Other Aluminum Oxide, valued at 299 million USD and accounting for 93% of total imports from Australia.
Total imports from the Saudi Arabia reached 229 million USD in Q2 2023. The top imported commodity was Other Aluminum Oxide, valued at 14 million USD and constituting 6% of total imports from KSA.
