The Report: Bahrain 2023

The strategic location of the island country of Bahrain, combined with its business-friendly ecosystem and diversified economy, has seen it emerge in recent decades as an attractive destination for foreign investment. The kingdom’s economic resilience during the disruption that came with the Covid-19 pandemic, aided by stable governance and a commitment to economic reform, has positioned the country as a competitive player in the GCC and broader Middle East.

The country’s guiding plan, Bahrain Economic Vision 2030, aims to enhance private sector growth and promote government investment in infrastructure, affordable housing, human resource development and digital transformation. The kingdom maintains a developed industrial sector and hosts the world’s largest single-site aluminium smelter outside of China, Aluminium Bahrain, with downstream firms creating products for export. This chapter contains an interview with Shaikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister.

Bahrain consolidated its recovery from the Covid-19 pandemic by achieving 2.2% GDP growth in 2021 before accelerating to 4.9% in 2022. To leverage the advantage of elevated oil prices, the country introduced an Economic Recovery Plan in late 2021 in an effort to stimulate sustainable and broad-based growth. This plan aims to improve public finances, catalyse investment in major infrastructure projects, and enhance economic competitiveness through the development of human capital and high-potential industries.