On October 31st 2021, the government of Bahrain announced an action plan to secure the economy’s long-term competitiveness and help the post-COVID 19 recovery. This represents one of the kingdoms largest economic reform programs. The five-pillar plan supports the goals of the Economic Vision 2030 and the intention to achieve net zero by 2060.
With a budget of 30 billion US Dollars for strategic projects, direct foreign investments and further GDP growth should be achieved. The five pillars of the plan include upskilling the Bahraini workforce to create valuable people for employment - Other pillars are to simplify business regulations and urban planning, promote business opportunities, and foster fiscal reform to reduce costs and adjust prices for businesses and investors.
Further the plan focuses on six industrial sectors with priority. The main segments are oil & gas, tourism, logistics, manufacturing, financial services, and digital economy plus ICT. All these efforts are aimed at reducing the dependencies from oil & gas. In addition, the strategic investment will help to build 5 new cities, infrastructure and ICT, tourism attractions, and industry zones.
As of now, some of the goals have been already achieved. With Sijilat, the commercial registration portal, business registrations and access to policies and regulations have been eased significantly. And by the 3rd quarter of 2022, direct foreign investments have totaled to 921 million US Dollars.
|Overall goal|| |
|Means Available|| |
|5-pillars of national economic growth and fiscal balance plan|| |
|6 Sectors of Priority|| |
|SubSectors of Tourism|| |
|Subsectors of Logistics|| |
|Subsectors of Manufacturing|| |
|Subsectors of Finance|| |
|Data Centers and Cloud|| |
|Economic Diversification||Reduce dependencies from Oil & gas (42% in 2002, 18.4% in 2021)|
|Major Development Projects worth 30b USD|| |
|Sijilat - Commercial Registration Portal|| |
|Fastlane high-impact legislation to grow the economy|| |
|Specific direct foreign investments in 2022 (921m USD in total)|| |