Bahrain unveils new economic growth & fiscal balance plans

Bahrain has introduced a new economic growth strategy that aims to attract $30 billion in investments to help the country recover from the coronavirus pandemic and balance its budget by 2024.

According to a statement from the Ministry of Finance and National Economy, the kingdom plans to create more than 20,000 employment annually by 2024 and attract $2.5 billion in foreign direct investment by 2023.

“This comprehensive economic and fiscal plan is an investment in our nation’s people, our businesses, and the future of Bahrain. The swift healthcare and economic action were taken by the government throughout COVID 19 secured the foundations of recovery, as evidenced by the real YoY growth of 5.7 percent in the second quarter of this year. The Kingdom is emerging from the pandemic with reasons to be highly optimistic and the plan announced today aims to turbocharge the recovery. The plan is also a concrete statement of our intent to secure a balanced budget by 2024 and provide long-term fiscal sustainability, with eight new spending and revenue initiatives complementing our broader economic competitiveness enhancements.”

Under the latest plan, six new sector strategies will be implemented across oil and gas, tourism, logistics, financial services, manufacturing, telecommunications, IT, and digital economy. “The move is expected to help the non-oil sector grow 5 percent annually by 2022,” the government said.

Further, the Regulatory Reform Package includes simplifying the process of business licenses approval procedures, the launch of a new Government Land Bank, an online portal to showcase investment opportunities, launching an online portal to digitize and simplify urban planning-related services, and the launch of a new residency permit program to attract talent and investors.

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