Thursday 18 July 2024

Noor bint Ali Alkhulaif

Bahrain attracts record $6.8bn FDI inflows in 2023

MANAMA, 28 days ago

Bahrain has secured a record $6.8 billion foreign direct investment (FDI) inflows in 2023, according to the latest World Investment Report (WIR 2024) by the United Nations Conference of Trade and Development (UNCTAD). 
The figure tops the previous record set in 2022, marking a huge increase of 148% from $2.8 billion. This contributed to the growth of cumulative inward FDI stocks, which climbed from $36.2 billion in 2022 to $43.1 billion in 2023. 
Marking one of the highest ratios in the world, Bahrain’s FDI stocks relative to GDP stood at 99.7% as of the end of 2023, a figure significantly higher than the global average of 46.9%. According to Bahrain’s Information & eGovernment Authority, the top countries contributing to Bahrain’s FDI stocks as part of a diverse portfolio include Kuwait (36%), Saudi Arabia (23%) and the UAE (10%).
Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board (Bahrain EDB), said: “The milestone FDI inflows attracted in 2023 reflects the strength of Bahrain’s value proposition and continued standing as a trusted destination of choice for regional and global investors seeking best value operating costs in a strategic location that serves as an ideal gateway to the region and beyond.”
The island nation continues to cement its reputation as an attractive hub for investments, where the government continues to prioritise the ongoing development of forward-looking regulatory frameworks alongside the implementation of strategic economic plans to encourage economic growth and diversification, said an EDB statement.
Bahrain’s nominal GDP increased from around $11 billion in 2003 to over $43 billion in 2023, marking an average annual growth of 7%, surpassing the global average of 5%. 
In addition to securing healthy economic growth, Bahrain’s economy also diversified, the financial services sector overtook the oil sector as the highest contributor to real GDP, standing at 17.8% in 2023, marking a milestone achievement.
Alkhulaif added: “Backed by an agile government, highly skilled bi-lingual talent pool, and financially liberal environment, Bahrain has proven itself as a leading investment destination enabling leading companies to benefit from a business-friendly environment. At Bahrain EDB, we continue to tactically work towards attracting increased investments from priority markets, supported by Team Bahrain, in the interest of sustaining economic growth and diversification” 
Attracting a total of $2.4 billion in investments from nine major projects and set to generate 3,000 job opportunities, the Golden License has been a pivotal initiative launched in Bahrain in April 2023, which has successfully encouraged increased regional and international investments. 
Spanning across various sectors, the latest projects awarded a Golden License in 2024 include Bahrain Titanium, the first facility of its kind in the region set to be established by Interlink Metals & Chemicals, the construction of the first greenfield head office of National Bank of Kuwait (NBK) outside of Kuwait, the development of a data centre facility and international submarine cable by Beyon, and the development Bahrain Marina. - TradeArabia News Service 


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