Bahrain

Focus in 2013 remained on maintaining growth and the continuing process of further diversification of the economy – something Bahrain has a head-start on over many of its neighbours. However, ongoing security concerns have overshadowed performance in some sectors.

Faced with a rapidly expanding population, Bahrain is seeking investors to help strengthen its food production capabilities at home, while also acquiring land overseas for cultivation.

With the Kingdom’s first solar plant scheduled for commission by the end of 2013, and the tender for a second renewable power plant to be announced in the coming months, Bahrain is one of many hydrocarbons producers investing in alternative fuel sources.

With a flurry of new infrastructure projects, the government is selling Bahrain’s regional connectivity as a key attraction for foreign investors. While the island Kingdom may not compete for east-west traffic with global transit centres like Dubai, Doha and Istanbul, Bahrain is carving out a role as a gateway to the GCC markets.

Long a leader in the region’s insurance industry, Bahrain is now facing rising competition, although plans to make medical coverage mandatory for foreign residents could give a welcome boost.

New incentives for property buyers could stimulate activity in the residential sector of Bahrain’s real estate market, a segment that is beginning to see signs of limited recovery.