Seeking to diversify its oil-based economy, the kingdom of Bahrain has attracted $290 million direct investment in manufacturing and Logistics in the first nine months of 2022, said the Bahrain’s Economic Development Board on Wednesday.
In the next 3 years, the investments bagged by the nation through 25 manufacturing and logistics companies setting up and expanding in the small island nation, are expected to create 1,200 jobs. The EDB informed that Manufacturing accounts for more than 13% of Bahrain’s GDP.
Ahmed Sultan, Executive Director – Business Development for Manufacturing and Logistics at Bahrain EDB,said “We are very pleased to see international manufacturing and logistics companies setup and expand in Bahrain, benefiting from the Kingdom’s strategic location, enabling them to tap into USD1.67 trillion GCC market. Manufacturing and logistics are among the priority sectors for us and under the Economic Recovery Plan to support future growth and employment within the Kingdom.”
Manufacturing and logistics made up more than 30% of all direct investment EDB attracted in the year to end-September, which was $921 million, up from $839 million for the whole of 2021 according to the EDB’s website. A figure for manufacturing investment last year was not available.
The EDB had set a target to attract $1 billion in direct investment this year. In total, the $921 million investments are expected to create 4,700 jobs in the next three years in sectors including financial services, ICT and tourism.
Bahrain is in advanced talks for investment deals with cloud computing companies from the United States, China and the United Arab Emirates to set up there, anEDB executive told Reuters in June.
Bahrain looks to achieve fiscal balance by 2024, a target delayed by two years due to the pandemic.
The medium-term fiscal plan is tied to a 2018 $10 billion aid package from Kuwait, Saudi Arabia and the UAE that helped it avert a credit crunch.
The economic recovery plan of the nation includes $30 billion in “strategic” projects, with an aim to grow non-oil GDP by 5% this year and create 20,000 “quality” jobs for Bahrain each year for the next two years.