Bahrain

Still high on Bahrain’s agenda is to bridge the shortfall in affordable housing through a mix of increased funding and greater involvement by the private sector. The twin benefits are seen as boosting the construction industry and contributing to social instability.

While 2012 may have been marked by an ongoing political stalemate and effects from regional and local unrest, Bahrain managed to overcome negative pressures and produce solid growth for 2012.

On November 10, the Mein Schiff 2, an ocean liner owned and operated by Germany-based TUI Cruises, docked at Bahrain’s Khalifa Bin Salman Port (KBSP), marking the opening of the new cruise tourism season. Government officials and companies in the tourism sector are hoping for a much-improved year, following the difficulties experienced through the 2011/12 season.

The introduction of measures aimed at updating and expanding the rules on takaful (sharia-compliant) insurance in Bahrain is expected to aid the segment’s efforts to make inroads into the market share currently held by conventional insurers.

The Kingdom has edged one step closer to developing a viable alternative energy infrastructure with its implementation of a solar energy project in the Awali Township of Manama. The 5MW, utility-scale photovoltaic solar facility was arranged as a joint venture between the National Oil and Gas Authority (NOGA), the Bahrain Petroleum Company (BAPCO), Caspian Energy Holdings and Petra Solar.

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.