Bahrain’s Economy to Grow 2.7%
Saturday, 02 08 2020, Category: Economy, Country: Bahrain
Bahrain’s economy is expected to record a 2.7 percent growth in 2020 driven by an increase in the non-oil sector which is also expected to grow 3.1 percent, the Ministry of Finance and National Economy has announced.
The number of visitors to Bahrain will rise from 7 to 15 million by 2022.
Acting director of studies and research at the Bahrain Center for Strategic, International, and Energy Studies (Derasat) Omar al-Ubaydli expected 2020 to see gradual increase in oil prices.
Ubaydli noted that a rise in oil prices will reflect positively on all sectors. He also expected the tourism sector to continue to improve due to the effectiveness of the Kingdom’s strategic tourism plan, which contributed to attracting tourists from all over the world, and reduce the previous dependence on Gulf tourists.
President of the Bahrain Economists Society Ali al-Moulani expected the financial services sector to improve in 2020, attributing it to Bahrain’s regulatory environment designed to attract financial technology services.
Moulani explained that the financial sector attracted entrepreneurs and commercial banks, and encouraged investment banks to launch technology-based banks, taking advantage of Bahrain's technology-friendly environment.
He stated that mergers and acquisitions between financial institutions will continue in Bahrain, contributing to the growth of the financial sector in 2020 and increasing the effectiveness and productivity of the merged banks.
Infrastructure projects are also expected to actively support economic growth in Bahrain. A number of projects worth over $6 billion out of a total of $32 billion had been completed.
Service projects in industry, energy, healthcare, and education sectors are expected to be established with a value of $7.5 billion. Industrial facilities in aluminum, oil, and gas sectors will be worth $10 billion, and private investment in real estate, tourism, and industry are worth $15 billion.
The kingdom is preparing to open a $1.1 billion expansion project for Bahrain International Airport, which will contribute to increasing the airport's capacity to 14 million passengers annually.
Source: Asharq Al-Awsat