Economy

Increasing revenues and reducing spending have been established as the core objectives of Bahrain’s economic policy, with subsidy reduction across the board likely to be a common theme in 2016. After energy, the financial sector continues to be the second-largest contributor to GDP, accounting for 16.5% of the total in 2014. This is followed by manufacturing which comprised 14.4% of GDP. Meanwhile the drive for greater private sector participation in the economy, particularly from small and medium-sized enterprises (SMEs), continues apace, and currently 97% of all companies in the kingdom fall into the micro or SME category, between them accounting for almost 30% of GDP. In recent years various government and non-government schemes have been launched offering SMEs financing, training, advisory services and infrastructural support.

This chapter contains interviews with Khalid Al Rumaihi, Chief Executive, Bahrain Economic Development Board (EDB); Shaikh Mohammed bin Essa Al Khalifa, Chairman, Tamkeen; and Mahmood Al Kooheji, CEO, Mumtalakat.