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With its long history as a trading centre, its wildlife and its ancient forts and mosques, Bahrain has strong appeal to draw in visitors from near and far. Made up of more than 30 islands, the archipelago is easy access for people living in the Gulf region – making it a prime destination for short stays – and visitors are able to check in to one of the increasing number of four- and five-star hotels operating in the kingdom. With the arrival of major international players and an increase in retail properties, which have established themselves as important aspects of the kingdom’s tourist landscape, not to mention cheaper and more easily obtained visitor visas, there is a lot for those involved in the tourism sector to feel positive about. This chapter contains an interview Sheikh Khaled bin Humood Al Khalifa, CEO, Bahrain Tourism and Exhibitions Authority.

From heavy industries largely owned by government entities to regional headquarters for multinational companies, Bahrain has a vibrant manufacturing sector that is growing steadily and playing an increasingly important role in the economy. The global downturn in both crude oil and commodities prices squeezed profit margins despite record production by Bahrain’s petrochemicals plants and aluminium smelter. However, the country is continuing to invest in the most ambitious industrial expansion plans for over a decade to capitalise on future global demand for its output. The single-biggest investment in the industrial sector is the $3bn project to build a sixth potline for Aluminium Bahrain (Alba), which will be the company’s largest expansion since potline five came on-stream in 2005. However, this individual development is part of a cluster of inter-related investments in Bahrain’s upstream and downstream industries that are designed to fire up the economy, attract additional investment and ensure long-term prosperity for the country’s citizens. This chapter contains interviews with Zayed R Al Zayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Alba.

With a raft of measures aimed at improving infrastructure, industry, housing and connectivity, the government of Bahrain has a $32bn investment strategy to accelerate economic diversification in the kingdom, providing abundant opportunities for the country’s construction sector. Even against a backdrop of falling oil prices that has seen the cancellation or deceleration of infrastructure investment in some neighbouring economies, Bahrain’s construction businesses have continued to outperform most other sectors. Some neighbouring GCC countries have stood by their 2011 commitment to finance $10bn in mega-projects in Bahrain over 10 years through the Gulf Development Fund (GDF), which has allowed construction to press ahead on some schemes despite a projected budget deficit of $4bn posted by the kingdom for both 2015 and 2016. According to Bahrain’s Economic Development Board, the aggregate value of GDF projects under way by August 2016 reached $4bn. This included a $1.1bn airport expansion project. This chapter contains interviews with Faisal Faqeeh, Chairman, Bin Faqeeh Real Estate Investment Company; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.

With construction under way on the $1.1bn expansion of its international airport and a further $700m investment being made on road and bridge building, Bahrain is working hard to improve its connections to the rest of the world while shortening journey times for its residents. Public transit is also a priority. Within six months of its new buses starting service in February 2015, some 33,000 passengers were using them daily, and the government is planning to commission a detailed feasibility study on a light rail network. Plans for a new rail and road causeway to Saudi Arabia have been discussed for some time, but this mega-project may have to wait a few years for its turn as Bahrain completes an ambitious programme for infrastructure. This chapter contains an interview with Sheikh Ahmed bin Hamad Al Khalifa, President, Customs Affairs.

Although its revenues from oil and gas have fallen, the government of Bahrain is ploughing new investment into the kingdom’s energy sector in the hopes that the broader economy will reap the benefits in the years to come. This counter-cyclical spending is designed to allow a significant increase in refinery capacity and a more secure supply of fuel for the country’s aluminium smelters, petrochemical factories, power stations and desalination plants. At the same time, the government has taken historic steps to reduce subsidies on fuel, food and utilities that have reduced its expenditure but increased the cost of living for its citizens. Bahrain, which has been a net importer of crude oil for many years, is reshaping the unspoken social contract between monarchs and citizens that characterises the economies of its oil-exporting GCC neighbours. The country’s natural resources may help fuel industries that employ many Bahrainis, but the trickle-down effect of oil wealth will no longer manifest itself in highly subsidised petrol, groceries or utility bills. This chapter contains an interview with Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil.

The wide array of local and international insurance companies that operate out of Manama have flourished in a regulatory environment that has allowed them to serve the small domestic market while simultaneously extending their operations regionally. A history of sound prudential oversight has protected them from the series of economic shocks that have created a challenging economic environment since 2011, during which time they have continued to post year-on-year expansions in written premiums. While low oil prices mean that adverse conditions are likely to persist in 2017, the promise of new mandatory lines maintains the possibility of renewed growth in the sector.