Bahrain Economy

NATIONAL CHARACTER: While Bahrainis are interested in and open to foreign cultures, they are also very proud of their own identity, history and culture, and they are willing to share their local customs and traditions with those who are keen to learn.

Small businesses play an important and growing role in Bahrain’s economy. According to the Labour Market Regulatory Authority, more than 90% of licensed companies had less than 10 employees in 2016 and approximately 98% of them employed less than 50 people each. The activity of this prominent part of the economy has become easier to track in...

The kingdom of Bahrain, renowned for its open markets and one of the most vibrant financial industries in the region, has faced economic headwinds in recent years. Lower oil prices have affected the many corporates that have chosen Manama as a base for their regional operations, and a stubborn fiscal deficit has resulted in a record-high level...

Bahrain’s efforts to narrow its fiscal deficit is taking place across a number of fronts. On the revenue side of the equation the awaited introduction of value-added tax is expected to have the single-biggest impact over the next two years. In terms of cutting costs, the ongoing reduction of energy subsidies is garnering considerable attention...

Bahrain has been a regional magnet for foreign direct investment (FDI) for decades. The accumulation of foreign capital over many years means that, relative to the size of the economy, it figures more prominently on the national balance sheet than in any other GCC state: according to the June 2017 “Economic Quarterly” report by the Economic...

For the nations of the GCC, the drop in oil prices highlighted something many already knew: there is a pressing need for economic diversification and to further engage with global partners across different markets. To this end, countries in the region have made efforts to expand their international role and reach in recent years, with trade...