BNR – In 2022, the economy of Bahrain increased by 4.9%, the fastest rate since 2013.
According to Bahrain’s state news agency, the gain was driven by a 6.2% increase in real non-oil GDP. This was the highest rate since 2012 and exceeded the economic reform plan’s yearly objective of 5%.
In 2022, the non-oil sector’s contribution to real GDP hit an all-time high of 83.1%. However, due to a decline in output, the oil economy fell by 1.4% last year.
Economic Restructuring in Bahrain
In 2021, Bahrain launched a significant economic restructuring plan that planned to invest $30 billion in strategy-oriented projects.
The strategy aims to develop the country’s economy, stimulate post-pandemic growth, create jobs for residents, and attract foreign direct investment. The government implemented saving measures as per the multi-year plan.
Also, it aims to create more than 20,000 job opportunities for residents each year through 2024, as well as train an additional 10,000 through its Tamkeen programme. The measure aims to assist the government in balancing its budget by 2024.
Naval Alliance and Diplomatic Ties
Shahram Irani, commander of the Iranian navy, declared in early June that Tehran intends to build a naval alliance with Bahrain, Qatar, Iraq, Pakistan, India, and the United Arab Emirates (UAE).
Iran just recently re-established ties with many Gulf Arab governments, including Bahrain, following its March rapprochement with Saudi Arabia through a China-mediated deal.
As part of the Abraham Accords, Bahrain and Israel committed to full diplomatic ties, which saw normalised ties with the UAE. However, the Israeli ambassador in Manama stated that the expanding connections will “take time” due to worries about the two nations’ lack of economic engagement.