Bahrain

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Early indicators suggest that investor sentiment in Bahrain has been largely unaffected by a recent credit rating downgrade from Standard & Poor’s (S&P).

New investments in the hospitality sector and efforts to raise Bahrain’s international profile should drive tourism growth in 2016, broadening the kingdom’s appeal as a destination for travellers from the region and further afield.

Ramped-up investment programmes and solid private sector expansion helped sustain Bahrain’s economic growth in 2015, albeit at a slower pace than in previous years.

Against a backdrop of weaker hydrocarbons prices, Bahrain is stepping up counter-cyclical downstream investments aimed at boosting energy and economic security. 

Large-scale investment in Bahrain’s infrastructure is under way to increase passenger-handling capacity at the country’s international airport, alongside efforts to expand ancillary services. 

Thanks to robust non-oil sector growth and ongoing regional investment in infrastructure development, Bahrain’s banks are proving more resilient than expected during this period of lower oil prices.

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