Bahrain

Looking to build on recent successes, Bahrain’s insurance sector is reaching out to potential clients through greater use of tools such as bancassurance. The sector is also hoping plans for increased infrastructure spending will boost the call for coverage for the construction and industrial sectors.

Enhancing surface transport connectivity to neighbouring countries, the region and the rest of the world is a central priority for Bahrain. In addition to the development of internal transportation, the government has identified the importance of new road and rail links to Saudi Arabia and Qatar to strengthen the country’s trade position and support its economic diversification.

The banking sector could be facing a challenging year, with the swelling debt crisis in Europe threatening to overflow into the local economy. While most of the Kingdom’s lenders remain well capitalised and resistant to external shocks, overall growth could be muted.

Bahrain is rolling out a series of new health care facilities, with both the state and the private sector looking to improve existing medical services and expand treatment options. On February 6, Bahrain opened it latest health facility, the 312-bed King Hamad University Hospital (KHUH).

Benefitting as it does from a respected regulatory environment and rising demand, Bahrain’s insurance industry already performs well among its peers. An increase in infrastructure spending, however, and a renewed government focus on the sector stand to boost its growth even further.

Demand for energy is growing, suggesting the economy is gaining momentum and prompting the Kingdom to boost local production while putting in place plans to secure imported supplies to meet any shortfall. Analysts forecast the Bahraini economy will pick up in 2012 and beyond, with ratings agency Standard & Poor’s predicting in January that GDP will expand by 3.5% this year.