Bahrain, a vibrant island nation in the Gulf, is undergoing significant economic transformation with strategic investments in tourism and infrastructure. From modernizing its airport to expanding luxury resorts, Bahrain is positioning itself as a premier destination. Let’s delve into the newsletter that’s driving Bahrain’s economic transformation.
Transitioning Towards a Diversified Future
Bahrain is shifting from an oil-dependent economy to a diversified one. Oil and gas exports, which comprised about 81% of government revenue pre-pandemic, declined to around 62.6% by 2022 due to successful diversification efforts, including a 10% VAT and other non-oil revenue initiatives.
Key Sectors Driving Growth
Financial Sector: In 2024, Bahrain’s financial services sector grew by 3.6% in the first half, driven by the Central Bank’s proactive regulations, including support for fintech, open banking, and crypto assets.