A long-term goal to increase non-oil revenues to cover 100 per cent of recurring expenses has been announced by Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa.
Speaking during a major annual national forum, ‘Towards Inclusive and Sustainable Economic Development’ yesterday, he added that non-oil revenues had increased from 18pc in 2018 to more than 40pc last year.
The minister said that the government was moving from economic recovery following the Covid-19 pandemic to sustainable growth with a focus on vital sectors and strategic projects.
The one-day forum was organised by the Shura Council at the Four Seasons Hotel Bahrain Bay under the sponsorship of NBB and BBK.
“Bahrain seeks to achieve long-term financial sustainability and for that we must adopt steps and policies that support the goal,” said Shaikh Salman.
“Three main targets have been set for this. First is the sustainability of public finances, second is promoting economic development, and the third is a focus on economic growth and the development of strategies and commitment in terms of government expenditures and revenues.
“Thy are aimed at strengthening public debt strategies and mechanisms to gradually reduce the public debt-to-GDP ratio until it reaches 60pc or less.”
Shaikh Salman said that the government was focusing on developing and prioritising six core sectors.
“Financial services is today the largest sector in Bahrain’s economy. The industrial sector is also of great importance, especially in the face of changes in trade balance and some attempt to redraw the global industrial map.
“There are great opportunities for Bahrain, especially in terms of linking the East with the West, and the balance that has been achieved in Bahrain in this regard.
“From this perspective, Bahrain is a centre for industry, as well as logistics services for distributing goods. This is very important to strengthen economic partnerships.”
He said that the Free Trade Agreement with the US was as vital as developing sectors.
“The US Free Trade Zone at Khalifa Bin Salman Port is very important, especially now when we are focused on strengthening commercial partnerships with the US.
“This is a logistics zone for the distribution of goods, as well as a potential area for attracting light industries, especially with regard to the distribution of American goods in the Middle East.”
Shaikh Salman said there were major components to increase work as well as place Bahrain in a prime location for global industries for large markets.
“Bahrain is the only country to have a data control law and this attracted global companies such as Amazon Web Services.
“We also saw Citibank opening an IT centre, with JP Morgan also announcing plans to open an IT office in the kingdom. Companies such as KPMG and PWC are also heading towards Bahrain.”
He said these developments created opportunities.
“First, it creates promising job opportunities for citizens. Second, it reaps the benefits of the digital infrastructure being built in Bahrain. Thirdly, it positions Bahrain as a future digital hub for these global companies.”
Turning to tourism, Salman said a lot has been done to set out the priorities.
He added that the biggest problem facing the sector today was that the number of people arriving in Bahrain is more than the infrastructure can connect them.
“We need to increase capacity as we continue to host events that attract tourists all year round.
“In addition, right now there’s a lot of work being done to attract companies that can use Bahrain as a logistics centre.”
As for the energy sector, the minister said Bapco Energies was focusing on expanding production by continuing to invest in new technologies, techniques and exploration.
He said work was ongoing by Beyon on a digital city that focuses on Bahrain as an incubator for technology.
“The future international fibre optic network project is also linked to the Digital City and Bahrain’s position as a data and information centre.
“This connection to the international fibre optic network connects Bahrain to Singapore in the east.
“From Bahrain to Marseille in France in the west, it is very important that this project continues to position Bahrain as an information and data centre and on the main route for the passage of global data through Bahrain.”
“The King Hamad Causeway and the GCC Railway Project are major projects to connect Bahrain, increase visitor capacity, and increase freight capacity.
“The bridge linking Bahrain and Qatar is also being given priority.”
“There are vital projects like the development of Al Jazayer Beach, a major tourism and residential project, the Bahrain Metro, the Sports City, the aluminium processing industrial zone and the air cargo village at Bahrain International Airport, increasing handling capacity from 300,000 to one million tonnes.”
mohammed@gdnmedia.bh
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