Bahrain's Foreign Investment Inflows Advanced By Economic Reforms


Bahrain is seeing an increase in foreign direct investments, which is being fueled by the country's business-friendly environment, advantageous location, and efforts to diversify its economy. According to a report issued by the international research and consultancy firm Oxford Business Group, Bahrain's policies and initiatives to better diversify the economy and increase inflows have already begun to bear fruit.  

The study is in line with the most recent UN report, which found that FDI inflows into the nation increased by $1.95 billion, or 5.82 percent, to $35.43 billion in 2022 from $33.48 billion in 2021. Bahrain, which projected a GDP growth rate of 4.9 percent in 2022 compared to 2.2 percent in 2021, is also reportedly exhibiting significant signs of recovery from the epidemic, according to the OBG research.  

“Bahrain benefits from several competitive advantages, including a strategic location that makes it a natural a gateway into regional markets and a favorable business environment,” said OBG’s Managing Director for the Middle East Jana Treeck.  

Bahrain Economic Vision 2030, the country's master plan, aims to promote government investments in infrastructure, affordable housing, human resource development, and digital transformation while also fostering the rise of the private sector. In order to draw investments into high-potential industries including tourism, information and communication technology, logistics, and financial technology, Bahrain is also implementing a number of policy reforms. 

Treeck said: “Looking ahead, we expect long-term strategies aimed at propelling growth in tourism, ICT and other sectors ripe for development to pay dividends, sealing Bahrain’s status as an attractive destination for foreign investment and positioning it as a competitive regional player.”  

OBG Editor-in-Chief Oliver Cornock remarked that Bahrain's non-oil growth appears to be outperforming that of the oil industry, which is a definite sign that the nation has been successful in pursuing economic diversification.

Current Issue