Bahrain is navigating an era of global economic uncertainty and geopolitical shifts by quietly transforming its economy for long-term resilience. The Gulf nation’s strategy hinges on diversifying away from oil dependence and investing in future-proof sectors – a move that is already evident as non-oil industries now account for over 84% of Bahrain’s GDP. Key sectors like financial services, manufacturing, ICT, logistics, and tourism have become the growth engines, collectively expanding 3.4% even amid global headwinds. This deliberate pivot is how Bahrain is “shifting gears” to manage risk and uncertainty.
Financial Services – Banking on Stability
Financial services are a cornerstone of Bahrain’s diversified economy, with the kingdom long established as a regional banking hub. The Central Bank of Bahrain continues to push regulatory innovations in fintech and digital banking, supported by the government’s broader drive toward becoming a financial powerhouse for the Gulf region.
Manufacturing – Industrial Strength Beyond Oil
Bahrain is leveraging its energy and logistics advantages to grow non-oil manufacturing, particularly in metals, plastics, and food production. Manufacturing now contributes ~15% to GDP and is a key pillar of Bahrain Vision 2030’s economic diversification strategy.
ICT and Telecom – Enabling a Digital Future
Bahrain is advancing its digital transformation to become a regional tech hub. The government supports this through investments in ICT infrastructure, cloud services, and smart cities. Digital economy initiatives aim to raise ICT’s share of GDP and attract regional talent.