Buoyed by its strategic location and commitment to economic reforms, Bahrain attracted a record-breaking $6.8 billion in foreign direct investment (FDI) in 2023, a near 150 per cent surge from the previous year, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2024.
The jump underscores Bahrain’s growing appeal as a regional and global investment hub, said Sustainable Development Minister and Bahrain Economic Development Board (Bahrain EDB) chief executive Noor Al Khulaif. “This milestone reflects the strength of our value proposition and our position as a trusted destination for investors seeking competitive operating costs and a gateway to the region,” she said.
The island kingdom’s economic diversification efforts are also bearing fruit. Its nominal GDP has climbed from around $11bn in 2003 to more than $43bn in 2023, surpassing the global average growth rate. Notably, the financial services sector has overtaken oil as the biggest contributor to real GDP, reaching 17.8pc in 2023.
Bahrain’s FDI stock-to-GDP ratio, a key metric of investment openness, stands at a hefty 99.7pc, significantly higher than the global average of 46.9pc. The top source countries for FDI include Kuwait (36pc), Saudi Arabia (23pc), and the UAE (10pc).
The government’s focus on fostering a business-friendly environment is a key driver. Initiatives like the Golden Licence programme, launched in April 2023, have been instrumental. Offering streamlined procedures and tax benefits, the programme has attracted $2.4bn in investments across nine major projects, creating an estimated 3,000 jobs. Among the recent Golden Licence recipients are Bahrain Titanium, the first such facility in the region; National Bank of Kuwait’s new regional headquarters; and a data centre complex by Beyon.
Looking ahead, Bahrain EDB remains committed to attracting further investment from priority markets, working alongside Team Bahrain to sustain economic growth and diversification.
avinash@gdnmedia.bh
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