Bahrain Economy

Reforms to improve trade and protect investor rights have bolstered Bahrain’s standing on the World Bank’s most recent ease of doing business index, with newly ratified legislation set to further boost its investment appeal.

The introduction of a goods and services tax, coupled with cost-cutting measures and a proposed multibillion-dollar loan, is expected to help Bahrain improve its fiscal position and reduce national debt.

Bahrain has benefitted from a series of reforms aimed at increasing foreign direct investment (FDI), recording a strong jump in inflows in 2017.

Bahrain has moved to improve its start-up ecosystem as part of plans to further diversify the economy, launching a new funding and training initiative specifically targeting entrepreneurs and small and medium-sized enterprises (SMEs).

Continued fiscal consolidation and reform, combined with steady growth, were the hallmarks of Bahrain’s year in 2017, with a similar outlook forecast for the coming 12 months.

An improved business environment in Bahrain could significantly enhance the economic contribution of smaller-scale enterprises, as local start-ups continue to ink deals with international companies, though weaknesses in key areas risk hindering entrepreneurial development.