Finance, Economy, and Trade Sector

The prosperous era of His Majesty King Hamad bin Isa Al Khalifa, over the past 25 years has marked a significant historical milestone in Bahrain's history. During this time, numerous national achievements have been realised, reflecting the royal will to create a brighter and more prosperous future for the nation and its citizens, particularly in the economic field. The Kingdom has made substantial strides in driving growth, diversifying the economy, and transitioning to reliance on non-oil sectors, while developing trade cities and attracting several global banks and financial institutions, establishing itself as one of the most important financial centers in the region.

Among the key milestones in driving growth and economic diversification was the establishment of the Economic Development Board in 2001, along with updates to the Commercial Companies Law, the issuance of the Electronic Transactions Law, and the establishment of the Labour Market Regulatory Authority. Subsequently, in 2004, the Bahrain Investors Centre was established, and a Free Trade Agreement was signed with the United States. In 2005, the Bahrain International Investment Park was inaugurated, followed by the establishment of Bahrain Mumtalakat Holding Company in 2006 and the Labour Fund "Tamkeen." Efforts in this sector continued, culminating in the establishment of the Bahrain Institute for Pearls and Gemstones "Danat" in 2019.

Building on Bahrain's Economic Vision 2030, which includes primary goals related to stimulating economic growth, efforts have continued to formulate and adopt policies and plans that support the development of priority sectors and transform the national economy into a globally competitive production economy. This has contributed to a notable increase in Bahrain's Gross Domestic Product (GDP) at current prices, growing from 2.9 billion Bahraini Dinars in 1999 to 16.2 billion Bahraini Dinars in 2023, with the size of the economy multiplying by 4.6 times over the past two decades.

Moreover, the Kingdom has consistently focused on developing and implementing initiatives that enhance the role of non-oil sectors in diversifying the economy, leading to an increase in the contribution of non-oil sectors to the economy from 56% in 2000 to 84% in 2023. The Kingdom is home to 367 licensed financial institutions and 88,623 active commercial registrations, reflecting a 358% increase, which positively impacts the development and sustainability of the financial services sector in the Kingdom.