Bahrain

The number of international arrivals to Bahrain surged in mid-August, as visitors headed to the Gulf country to celebrate the post-Ramadan Eid holidays. The tourism sector appears to be more generally looking up after a challenging 2011, with its direct contribution to GDP projected to grow by 3.7% per year until 2022, according to the World Travel & Tourism Council. Recent investor activity is largely in line with these expectations, with a number of new hotels set to open in the coming years.

The construction sector will be operating in a new environment starting next year when building regulations mandating the use of eco-friendly best practices are due to be implemented. However, the shift toward greater sustainability may prove challenging for some.

A possible merger between the Kingdom’s two airlines, combined with increasing hotel occupancy rates and a rise in traffic at the Bahrain International Airport, are proving promising for the aviation industry’s expansion.

The Kingdom’s economy is making steady progress towards regaining lost momentum following the global financial crisis and civil unrest in 2011. However, the recovery will need to be managed carefully if past losses are to be fully recouped.

The creation of a new multi-billion-dollar industrial city in Bahrain could soon be given the green light as the government steps up its efforts to build on its manufacturing base.