Bahrain Adapts to Robust Non-Oil Growth: A Moment To Rejoice for All Professionals!

Bahrain finds its place in the midst of global changes—and the outlook is good.

Known as “Middle Eastern Lite,” Bahrain has, for many decades, been a country flooded with professionals from a zillion different social backgrounds and fields of expertise. Be it the proliferating banking sector or the vigorous real estate market here, there’s no doubt that Bahrain is now unfolding with new economic developments on every front.

One area that often comes to mind is the efficient petroleum sector in this country. The same could be said for any country in the Gulf. Bahrain, too, has been comfortably sitting on the wagon to riches, well-supported by its petroleum sector, for a very long time.

Sources suggest that the GDP here is set to grow by 4.5% during the upcoming fiscal year.

However, of late, the market has been in a state of upheaval over the oil-price uncertainty with which this Arab nation is now dealing. The ill-effects on the Bahraini economy are mind-boggling, but the fact is, this country has something else to offer.

GDP Growth with Fiscal Balance Retained

Sources suggest that the GDP here is set to grow by 4.5% during the upcoming fiscal year. With activities in the non-oil sector projected to remain robust, the petroleum sector is most likely to remain subdued during the projects and economic operations scheduled to happen this year in various parts of the country.

It could be the case that the budget deficit in 2015 will grow two-fold, compared with the numbers of 2014. With constant efforts in fields like banking, real estate, manufacturing, and education, however, there is a definite chance of the numbers returning to a single-digit figure by 2016 or 2017.

While the regime is tightening things up by stiffening spending and curbing all outlays to identify additional savings, even with wavering oil prices, the country’s economy is efficiently moving forward along the lines of a sustainable growth model.

There’s no doubt that Bahrain is now unfolding with new economic developments on every front.

Growth in Non-Oil Sectors

Surpassing expected projections for developmental characteristics in various fields, the non-oil sector in Bahrain grew at a rate of 5% during the first quarter of 2015. Not only has this created a number of career avenues within the budding corporations hiring talent from across the globe, it has also sent an open invitation to global investors to chip in the required capital for various Bahraini projects.

This reflects clearly in the continual growth in infrastructure activity, which remains in full swing along with the private education and healthcare sectors that seem to be flourishing within Bahrain.

To clear the air of any confusion, the factors lining up for the near future clearly indicate a high degree of continuity in the non-oil sphere. Going by the key growth drivers and the commitment shown by regional governments, investors are all set to fund projects in various domains, hence pushing the non-oil economy a notch ahead.

Building further upon the numbers, the social and personal services sector in this country has shown an 8.3% Y-o-Y growth, surpassing the booming hospitality sector and making it hopeful for economists to witness a national shift in reliability toward other sectors, as well. Apart from this, a 7.3% Y-o-Y rise has also been observed in the real estate sector in terms of product-absorption and revenue generation. This has not driven a substantial rise in transportation and communication activities, but has acted as a support system for other fields to learn from.

When all is said and done, it’s quite clear that Bahrain is emerging in the global context, with promising outcomes for talented entrepreneurs. It’s just a matter of making a run for it. The country has a lot in store for you.

by Anshuman Kukreti

Bahrain-based digital platform and publication for startups in the Middle East. Exclusive events, in-depth workshops, insightful content, and informative news. In strategic partnership with Tamkeen Bahrain, Zain Bahrain, National Bank of Bahrain, Zoho, Tenmou, and StartUp Bahrain.

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