Bahrain’s thriving business-friendly environment, strategic location, and dedicated efforts towards economic diversification have resulted in a notable surge in foreign direct investments, as revealed in a recent report by global research and advisory firm Oxford Business Group (OBG).
According to the OBG report, Bahrain’s commitment to diversifying its economy and encouraging inflows has yielded promising outcomes. The country’s gross domestic product (GDP) growth rate for 2022 reached an impressive 4.9 percent, a significant improvement from the 2.2 percent recorded in 2021, showcasing signs of a strong recovery from the pandemic.
The United Nations’ latest report aligns with these findings, indicating that Bahrain’s foreign direct investment (FDI) inflows witnessed a remarkable increase of 5.82 percent, rising to $35.43 billion in 2022 from $33.48 billion in 2021.
OBG’s Managing Director for the Middle East, Jana Treeck, highlighted several competitive advantages that contribute to Bahrain’s attractiveness for foreign investors. These include its strategic location, positioning it as a natural gateway into regional markets, and a favourable business environment.
Bahrain’s ambitious guiding plan, the Bahrain Economic Vision 2030, plays a pivotal role in propelling economic growth. The vision focuses on strengthening the private sector, investing in infrastructure, affordable housing, human resource development, and digital transformation.
To further boost investments in promising sectors, such as tourism, information and communication technology (ICT), logistics, and financial technology, Bahrain is introducing various policy reforms.
Looking ahead, Treeck expressed confidence in the country’s long-term strategies, expecting significant returns from efforts to bolster sectors ripe for development, like tourism and ICT, solidifying Bahrain’s status as an alluring destination for foreign investment and a formidable player in the region.
OBG’s Editor-in-Chief, Oliver Cornock, highlighted the commendable progress of Bahrain’s non-oil sector, which is outpacing the oil sector. This accomplishment is a clear indication of the country’s success in diversification initiatives. Initiatives like the Public-Private Partnerships guide have played a crucial role in attracting investments, particularly for key capital projects supporting Bahrain’s manufacturing and logistics development plans.
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