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Bahrain’s public education system marked its centenary in 2019, making it the longest-running institution of its kind in the GCC. Since its inception, a range of primary, secondary and higher education institutions have evolved in the country, delivering strong student outcomes. In addition, the government is working closely with universities and the private sector to increase research and development, and improve connections between academia and the business community. The major challenge ahead will be ensuring the sector is able to incorporate emerging technologies and methodologies, so that students at all levels of the education system have the skills and knowledge needed to support the country’s economic diversification strategy and competitiveness.

Home to one of the region’s most unique island geographies, UNESCO World Heritage sites and the popular annual Formula 1 Bahrain Grand Prix event, Bahrain already has much to offer visitors. The capital Manama has a long-established reputation for its high-end retail and hospitality offering, providing tourists from neighbouring states, notably Saudi Arabia, with a convenient getaway destination via the King Fahd Causeway. The kingdom has also continued to benefit from its long-established reputation as a more culturally liberal state in the region, which has proven to be a draw for its leading source market Saudi Arabia. However, as the neighbouring kingdom opens up and the region becomes more competitive, further developing the country’s niche markets and attracting arrivals from further afield will prove essential.

Outside of financial services, Bahrain’s manufacturing sector has grown to become the largest contributor to non-oil GDP. The sector has benefitted from rising foreign direct investment inflows, one of the world’s leading global aluminium industries and increasing diversification into value-added production across several segments. Manufacturers and exporters in Bahrain have long exploited significantly lower operating costs than elsewhere in the GCC, generous investor incentives, and well-connected logistics at a network of free zones offering easy access to regional and global markets. As the kingdom moves forward on implementing a large-scale infrastructure development agenda, local manufacturers are also positioned to benefit from rising domestic demand. This chapter contains interviews with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism and Ali Al Baqali, Acting CEO, Aluminium Bahrain.

Bahrain’s construction sector was one of the fastest-growing non-oil sectors. Its expansion was supported by a surge in investment into infrastructure for energy, manufacturing and real estate. Rates of growth and lending have risen steadily on the back of a major oil and gas modernisation programme and a number of big-ticket projects. Real estate in Bahrain has remained resilient in the face of successive macroeconomic challenges, maintaining a positive growth trajectory in recent years even as rental and occupancy rates declined across the residential, commercial and hospitality segments. While developers have struggled with oversupply and weakening demand – particularly for luxury residential space – lower property prices have created new opportunities for businesses in the kingdom, where office space remains significantly less expensive than Abu Dhabi and Dubai. This chapter contains interviews with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company; and Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority.

With investment rising despite subdued recent growth, Bahrain’s transport sector remains an important and dynamic non-oil growth driver. With passenger and cargo volumes rising across its roads, port and airport, Bahrain’s transport sector is set to benefit greatly from its sweeping infrastructure development agenda. Although many big-ticket projects, including a new airport, metro system and the King Hamad Causeway, are years away from completion, the kingdom has made significant recent progress in launching and resuming critical transport projects to address the issue of congestion. Rising investment across the sector and Bahrain’s efforts to leverage its geographic position will further support long-term expansion, putting sector on track to achieving its 2030 targets. This chapter contains interviews with Kamal bin Ahmed Mohammed, Minister of Transportation and Telecommunications; and Mohamed Yousif Al Binfalah, CEO, Bahrain Airport Company.

Domestic oil production has declined in recent years, and Bahrain has increased its efforts to accelerate diversification and realign its economy to non-oil growth. However, the oil and gas sector remains its largest economic contributor, benefitting from a growing petrochemicals manufacturing base, rising natural gas production, and a major potential offshore oil and gas discovery in the Khaleej Al Bahrain basin. Despite facing challenging external conditions and declining domestic oil production, Bahrain’s energy sector is positioned for significant mid-term expansion, supported by the Bahrain Petroleum Company Modernisation Programme and its knock-on benefits to downstream and manufacturing industries, ongoing offshore exploration and production activities that could allow authorities to reap considerable long-term economic benefits. This chapter contains an interview with Pete Bartlett, CEO, Bahrain Petroleum Company.