Bahrain Sets New Record with $6.8 Billion FDI Inflows in 2023

Bahrain, 21 June, 2024 : Bahrain attracted a record $6.8 billion in foreign direct investment (FDI) inflows in 2023, as reported in the latest World Investment Report 2024 by UNCTAD. This figure represents a significant 148% increase from $2.8 billion in 2022, contributing to a rise in cumulative inward FDI stocks from $36.2 billion to $43.1 billion during the same period.

The FDI stocks relative to Bahrain’s GDP reached 99.7% by the end of 2023, well above the global average of 46.9%. Key contributors to Bahrain’s FDI stocks include Kuwait (36%), Saudi Arabia (23%), and the UAE (10%), reflecting a diverse and robust investment portfolio.

Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board, Noor bint Ali Alkhulaif, highlighted Bahrain's attractiveness as a strategic investment hub. She emphasized Bahrain's competitive operating costs, strategic location, and robust regulatory frameworks that continue to attract regional and global investors.

Bahrain’s nominal GDP has grown steadily, reaching over $43 billion in 2023 with an average annual growth rate of 7%, surpassing the global average of 5%. The financial services sector, now the largest contributor to Bahrain’s GDP at 17.8% in 2023, has played a pivotal role in the country's economic diversification.

Alkhulaif underscored Bahrain's commitment to sustaining economic growth and diversification through initiatives like the Golden License, which has already attracted $2.4 billion in investments and is set to create 3,000 job opportunities. Recent projects awarded under the Golden License include Bahrain Titanium by Interlink Metals & Chemicals, the first NBK head office outside Kuwait, and the development of data center facilities by Beyon.

Bahrain continues to leverage its agile government, bilingual talent pool, and liberal financial environment to solidify its position as a leading destination for investment in the region.

Source : www.zawya.com