Bahrain’s non-oil sector grows by 4.8%

 

The growth momentum of the Bahraini economy has continued to exceed expectations, with the annual pace of growth in the non-oil sector reaching 4.8% in the first nine months of 2017. During 2017 as a whole, non-oil growth is expected to exceed the 4.0% pace recorded in 2016, according to the latest Bahrain Economic Quarterly published by the Bahrain Economic Development Board (EDB). 
The performance of the non-oil private sector also meant that overall economic growth in the Kingdom reached an annual pace of 3.6% for the first three quarters of the year – improving on the 3.2% pace of growth posted during 2016 as a whole and making Bahrain the fastest growing economy in the GCC. 

Speaking on the publication of the report, Dr. Jarmo Kotilaine, Chief Economic Advisor of the Bahrain EDB, commented: 
"Bahrain’s economy continues to deliver at the upper end of growth expectations thanks to a combination of robust structural and countercyclical drivers. We expect this positive dynamic to continue into 2018 as the regional environment becomes more supportive of growth and as the diversified economy continues to expand, supported by an unprecedented investment pipeline."

"Alongside this strong recent performance, we are also seeing increasing efforts to position the country to take advantage of emerging growth drivers as the region’s economy undergoes a paradigm shift. As growth becomes increasingly underpinned by improvements in productivity, Bahrain’s investment in infrastructure, regulatory reform and development of human capital will play a vital role in ensuring long-term, sustainable prosperity and expansion," added Dr. Kotilaine.

Encouragingly, non-oil growth in Bahrain is almost entirely driven by the private sector at a time of fiscal austerity. The positive momentum is broad-based, characterised by strong performances across a number of areas. Hotels and Restaurants, Social and Personal Services, Transportation and Communications, and Financial Services all expanded more than 6% year-on-year real growth during the first three quarters of 2017. All of this points to the continued strong progress of economic diversification in an economy where the non-oil sector collectively already generate more than 80% of GDP.

While growth is benefiting from a range of structural drivers, non-oil growth is particularly boosted by large-scale infrastructure investments at a time of historically subdued oil prices and low government spending growth. The overall investment project pipeline is estimated to have increased by nearly 20% last year and is led by USD32bn worth of strategically important priority projects that are progressing according to plan. These range from the airport modernisation project to the expansion of the Alba aluminium smelter and the Bapco (refinery) Modernization Project. In many areas project implementation has been accelerating and this is set to continue in 2018. For instance, during 2017 as a whole, the value of tendered projects as part of the GCC Development Fund rose from USD3.9bn to more than USD4.1bn. The cumulative amount of money disbursed almost doubled from USD751mn in 4Q16 to USD1.4bn a year later. 

Alongside a strong performance in the first nine months of 2017, Bahrain has also put in place a number of initiatives designed to position the Kingdom to benefit from future growth opportunities in emerging sectors. 
In 2017, Bahrain implemented key pillars of the regulatory framework for FinTech, including the launch of a regulatory sandbox which has already accepted its first six entrants. Bahrain is also set to launch the first dedicated FinTech hub and corporate incubator in the Middle East and Africa region in February. Bahrain FinTech Bay will collaborate closely with the Central Bank of Bahrain, notably its new, dedicated FinTech and Innovation Unit, and the Bahrain EDB.

The Kingdom is also making substantial investments in its ICT infrastructure and ecosystem in a bid to make digitisation and creative tech-based entrepreneurship key drivers of economic activity. The second half of 2017 saw a number of events designed to drive the agenda forward. These included the Amazon Web Services (AWS) Summit, the Technology Week Tent, and the MIT Innovation Conference.

We have 632 guests and no members online

Gulf3maal البحرين: صرف أجور العمال المتأخرة خلال أيام https://t.co/pp8jOMsACD
Gulf3maal رئيس الوزراء يتلقى برقية شكر من رئيس الاتحاد الحر لنقابات عمال البحرين... https://t.co/OqWQG9iH5m
Gulf3maal البحرين: تلاشي ظاهرة «المشاريع المتعثرة» https://t.co/RMafv4YVzu
Gulf3maal WFTU Declaration on the World Day Against Child Labour, 12th june... https://t.co/RZDcEz8uGq
Gulf3maal Colombian garbage man builds library from discarded books... https://t.co/1SApOK05hp
Gulf3maal نمو في حجم التجارة الماليزية بنسبة 5% في 2017 https://t.co/p5H0BLP4O7
Gulf3maal الامارات: تدريب موظفي مستشفى المفرق على لغة الإشارة... https://t.co/9xEHCNAP0F
Gulf3maal البحرين: هند بنت سلمان تفوز بعضوية مجلس إدارة منظمة العمل الدولية... https://t.co/TldB8iqj7f
Gulf3maal البحرين: الشيخة مي تستعرض التحضيرات ليوم المرأة مع «الأعلى للمرأة» و«المهندسين»... https://t.co/cDgjTFyLVc
Gulf3maal البحرين: ولي العهد: مواصلة تعزيز قوة الاقتصاد عبر تطوير الإجراءات والتشريعات... https://t.co/CoqUtBC6Sj
c3.jpg
JORDAN000.jpg

Email us at:

This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter