The Bahrain Association of Banks (BAB) has highlighted to a delegation from the advisory mission of the International Monetary Fund (IMF) the strength of Bahrain's banking and financial sector.   

 

“The Bahraini economy has many unique qualities, including being one of the most diverse in the region, with a higher share of GDP from the service and manufacturing sectors, a low level of inflation, and an interest rate environment that encourages business operating conditions, in addition to skilled labour and the relatively cheap cost of investment,” BAB CEO Dr Waheed Al-Qassim apprised the IMF assistant director of the Middle East and Central Asia Department Asmaa El Ganainy. 

 

Moody's Investors Service has changed the outlook on Bahrain to stable from negative and has affirmed its B2 long-term issuer and senior unsecured ratings, BAB 

 

Improvement

This comes after it observed a clear improvement in Bahrain's sovereign financial and external balances expectations, and made it clear that this amendment, based primarily on an increase in oil prices, would contribute to improving the financial budget, reducing liquidity pressures and the accumulation of public debt, and stimulating economic growth, BAB said.

 

The meeting was attended by several members of BAB board, including Najla Al Shirawi,  Abdulwahid AlJanahi, Zeeba Askar and the Society's advisor, Dr Hassan Al-Aali. 

 

Several topics of mutual interest were discussed during the meeting, including insights on the latest economic trends at the local and global levels. 

 

Developing the financial sector

Dr Al-Qassim explained to the visiting delegation the role of the BAB in supporting the Central Bank of Bahrain's (CBB) strategy for developing the financial services sector in Bahrain, which focuses on developing the banking and financial sector as a whole and increasing its contribution to the GDP within the framework of CBB’s economic recovery plan.

 

Dr Al-Qassim explained that the Bahraini economy recorded an estimated growth of 2.2% during 2021 and that this steady recovery was led by the non-oil sector, which recorded a growth of 2.8% on an annual basis, including the financial services sector, in addition to the transport, communications and hospitality sectors. 

 

He emphasised that Bahrain's proactive and efficient management of the Corona pandemic reduced its negative repercussions on the economy and allowed it to recover fast.-- TradeArabia News Service