MANAMA: Bahrain saw Foreign Direct Investment (FDI) inflows of $1.007 billion in 2020, according to the latest World Investment Report (WIR 2021) from the UN Conference of Trade and Development (Unctad).
The annual report charts global investment flows, analyses trade trends, and examines government policies that seek to expand world trade.
Last year marked the fourth year in a row of more than $1bn in annual FDI inflows for the kingdom.
The report highlighted that global FDI contracted by 35 per cent to $1 trillion in 2020, with an expectation for flows to bottom out in 2021 and recover some lost ground with an increase of 10-15pc.
Current projections suggest that FDI will increase a further 15–20pc in 2022, up to $1.4trn.
Developed economies are expected to drive global growth in FDI, both because of strong cross-border mergers and acquisitions (M&A) activity and large-scale public investment support.
FDI inflows to Asia will remain resilient as the region has stood out as an attractive destination for international investment throughout the pandemic.
Developing Asia, already the largest FDI recipient region – accounting for more than half of global FDI – registered a rise of 4pc to $535bn in 2020.
Despite global trends, Bahrain experienced a 3.3pc increase in inward FDI stocks, reaching $31.7 billion in 2020.
Also highlighted was Bahrain’s stock to GDP ratio, where the country’s inward FDI stocks relative to GDP reached 92pc, the highest ranking in the GCC and surpassing the global average of 49pc.
The report also recognised the kingdom’s plans to continue implementing wide-ranging reforms to attract direct investments and link it to its national development and economic diversification plans.
A wide range of sectors drove investment, further demonstrating Bahrain’s strides in diversifying the non-oil sector.
Some of the sectors mentioned in the report include manufacturing, education, healthcare, and information technology industries.
Khalid Humaidan, chief executive of the Economic Development Board, commented: “Despite the challenges that Covid-19 has brought to economies around the world, we were able to carry the momentum from the previous year and attract hundreds of millions of dollars in investment into the country. We are looking forward to continue working with our partners to attract investment into the Kingdom and support existing companies expand, further diversifying our economy and creating jobs in the local market.”
The EDB is the government’s investment promotion agency, mandated to attract investments into Bahrain and continue to drive economic diversification and create jobs in the local market.
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