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The public education system of Bahrain is poised to mark its centenary in 2019, but the main focus in the country’s schools and universities is further in the future. New institutions are being built and opened in both the public and private sectors to serve young people from nursery age through to postgraduate study. According to international indices, Bahrain’s schools are outperforming many in the region, and results are improving, but there is still some way to go if they are to match the best in the world. This chapter contains an interview with Riyad Y Hamzah, President, University of Bahrain; and Ahmed Al Shaikh, Director, Bahrain Institute of Banking and Finance.

As a leading performer in Bahrain’s economy in 2017, the tourism and leisure sector has begun measuring its success and impact in billions of dollars. The kingdom expects to see annual tourism receipts of over $1bn by 2020, by which time over $1bn will have been spent on upgrading its international airport and a further $10bn on a raft of new luxury hotel developments. By the end of 2018 the national carrier Gulf Air is set to take delivery of the first of a new $4bn-fleet of Boeing 787-9 Dreamliners. Further into the 2020s up to $5bn looks set to be spent on a second causeway to Saudi Arabia to carry cars as well as trains running on the new GCC rail network. This chapter contains an interview with Sheikh Khaled bin Humood Al Khalifa, CEO, Bahrain Tourism and Exhibitions Authority.

Since the 1970s Bahrain has made a concerted effort to diversify its economy, with efforts visible in the vibrant manufacturing segment and from the growth of the kingdom’s heavy industries. Despite the drop in state revenues due to lower global oil prices in recent years, Bahrain continues to invest in its industrial sector, notably with the $3bn expansion of Aluminium Bahrain, which will see production grow to 1.5m tonnes per year – a rise of over 500,000 tonnes. Meanwhile, Bahrain continues to capitalise on its oil and gas resources, with significant investment in the downstream petrochemicals segment. This is highlighted by the $5bn being spent on the modernisation taking place at Bahrain Petroleum Company and the $515m gas plant expansion by Bahrain National Gas Expansion Company. This chapter contains an interview with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Aluminium Bahrain.

While 2017 saw the construction sector’s rapid growth slow somewhat, Bahrain has an impressive pipeline of projects lined up for the next few years. A strong focus on transportation and industrial infrastructure, as well as the construction of tens of thousands of affordable housing units, is expected to be among the key drivers of growth for the sector in the near future, with much of this coming from government-backed projects tied to Bahrain’s Economic Vision. Strong real estate growth continues with a number of residential, commercial and hospitality developments coming on-line in 2017 and 2018. However, rental prices have not been immune to the ongoing regional challenges, notably lower oil prices, with rents dropping in 2017 for residential real estate, and remaining subdued for the office sector. Despite this, the overall volume of real estate transactions has grown, with strong demand from locals and residents from countries in the region. This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.

Targeting improvements in domestic infrastructure as well as expanding the links between the kingdom, the rest of the Gulf region and further afield, Bahrain is investing heavily in its transport networks. Among the major ongoing developments is the Airport Modernisation Programme, launched in 2015 to cater for rising air traffic, with the aim of turning Bahrain International Airport into one of the key regional hubs for tourism and services. Plans to construct a second causeway linking Bahrain and Saudi Arabia are also on the agenda, while the ambitious Gulf Railway, a network that would run through all six Gulf nations, has been pushed back and is now likely to move forward in 2021. Proposals to create a light rail system in Bahrain are also in the works, albeit slowly, while roads and bridges are under construction. This chapter contains an interview with Mohamed Yousif Al Binfalah, CEO, Bahrain Airport Company.

While Bahrain has pushed successfully to become one of the most diversified economies in the Gulf region, petroleum products still make up a significant share of the country’s total exports: 50% of all exports in 2016, according to data from the UN International Trade Statistics Database and the World Bank. In addition, the drive to establish a flourishing industrial base, coupled with favourable oil and gas subsidies over the years, has put pressure on the kingdom’s ability to meet domestic energy needs with its own supplies of natural gas. The construction of a liquefied natural gas (LNG) terminal, which will start receiving LNG in 2019, as well as reductions in energy subsidies, are likely to help address this shortfall. However, in the long term more will need to be done to raise domestic production or import more oil and gas into the country. This chapter contains an interview with Abdul Hussain bin Ali Mirza, Minister of Electricity and Water; and Peter Bartlett, CEO, Bahrain Petroleum Company.