Of the many questions our clients and investors discuss with our expert team, a popular question relates to the Kingdom of Bahrain’s economy. Such is Bahrain’s excellent location in the Middle East, our clients across the region always look to gather expert advice on this subject.
Understanding the economic forecast of any country can be complex, but here’s some analysis to help provide some insight into this topic.
According to the International Monetary Fund (IMF), Bahrain’s economy is expected to grow by 1.8% in 2019 and remains at the same pace as 2018 (as quoted by the IMF in March 2019).
To help relieve pressure on the Kingdom of Bahrain, back in October 2018, 3 key allies in the region (KSA, UAE and Kuwait) promised five years of aid worth approximately $10billion.
In addition, the Kingdom of Bahrain has released a fiscal balance programme tied to the financial aid to help adjust finances, which – like most oil rich countries – were affected by lower oil prices in recent years.
A source directly from the IMF was quoted as saying that the $10billion in aid “marks a major step in Bahrain’s reform agenda and has alleviated near-term financing constraints.”
In February the Kingdom of Bahrain’s Central Bank Governor expected annual growth for 2019 to be in the region of 2% to 2.5%.
To help boost income in the country, direct taxation and corporate income tax initiatives have been implemented.
The Economic Development Board (EDB) continues to play a leading role in bringing economic prosperity to the Kingdom of Bahrain thanks to a number of global agreements.
More recently, thanks to the EDB:
In tandem with the Government, the EDB continues to diversify global investments whilst securing existing ties with some of the largest corporations in the world.
At Bin Faqeeh, our expert team of advisors and employees aim to provide as much insight as possible across real estate and investment matters. For questions and information, contact 38000002 or complete our contact form today!