Bahrain’s economy will continue its growth
Bahrain, like many of the countries in the middle east, has a growing economy. One that has relied on oil for much of its strength in the past, but is now trying to diversify its sources.
Bahrain has had consistent years of growth in its GDP over the past 25 years, with a substantial 5.4% growth recorded in the year 2013. However, like most other nations of the world and of the region, it has seen the impact of the pandemic reflected in its economic strength.
The country experienced a shrinking of over 5% of its GDP in the pandemic ridden year of 2020. This is even higher than the overall fall in GDP experienced by other economies in the region.
However, this is not a trend that is expected to continue, with a growth of 3.1% expected in the years 2021 and 2022. There are even more positive predictions being made, with the country itself expecting the economy to grow as much as 5% in 2021.
And this is not just an overly optimistic prediction either. The country has long operated with its Vision 2030 at the forefront of its economic planning, with initiatives and activities designed to strengthen the various non-oil industries in the country, thereby developing a more resilient economy.
Where will Bahrain’s economy see its growth come from?
Bahrain has undertaken many initiatives as part of its Vision 2030, which was uncovered as early as 2008. We discuss the vision 2030 and its specifics in more detail here.
In essence, the country aims to create a fairer, more sustainable and more competitive economy. And one that has multiple sources of strength and not just oil as was the case in the past.
And there are a few major industries that the country has undertaken specific efforts to encourage and grow. Tourism is a high priority industry for Bahrain, with it investing well over $10 Billion into projects improving tourism infrastructure in the country. There are also specific bodies that have been established in recent years to grow tourism in the country.
And it does have the potential to excel in attracting tourists from around the world. With its many beaches that come about as a result of it being an island nation and the many attractions that it presents to tourists from the region and beyond, it does have significant potential to become MENA’s premier tourism destination.
The growing tourism industry will likely form a much larger portion of Bahrain’s economy over the next decade.
Then there are the other industries that the country is actively encouraging, such as retail. And this is an industry that is expected to grow alongside tourism, with the country’s residents making up only 24% of its overall retail market. It is already a favourite destination for shoppers in the region, with its many malls and traditional markets. And this is only expected to grow over the coming decade.
Retail is an important industry for most of the world’s countries, as consumption rises with the rising population. And the population in Bahrain is one that is not expected to be stagnant.
And with the arrival of more people, comes the potential for a growing population. And in a small country with a decidedly limited amount of land that is available, the chances of gaining significant returns from real estate is unmistakably high.
Bahrain is a hub of talent from around the world and has turned itself to be a favourite of expatriates from around the world. As such, the country’s population is expected to climb to as high as 2.6 million by 2030, a rise of almost 53% compared to the current population.
With the increasing population, the prices and returns from real estate investments are likely to see significant growth, contributing to increased FDI into the country.
The country has also done a strong job at turning itself into a banking and financial hub for the middle east, with the total banking assets standing at around $192 Billion. This figure is over 12 times the annual GDP of the country and one that can reasonably be expected to grow.
The financial and fintech industry, together, will contribute to the development of the country’s economy over the next decade. This will be boosted by the growth in the technology industry in the country, one in which the country allows for full foreign ownership of businesses.
How companies in Bahrain can take advantage of Bahrain’s economic growth
In a growing economy, there are always opportunities to take advantage of for businesses and investors.
Identifying the industries where the most growth is expected to happen is the first step to grasping the opportunities. And that is exactly what this article has presented to you.
The next step is taking action to enter Bahrain if you haven’t already.
And the best way to do it? Joining forces with a local business that can service all your business needs in and around Bahrain. And it’s even better if the business has a reliable track record of making business happen for companies of various sizes and from various industries.
Take action now, and seize the many opportunities that are present here in Bahrain, waiting for the right investor or business to take. CONNECT WITH US TODAY, and learn more about how we can help your business in Bahrain.