The UAE contributed 10 percent of Bahrain’s foreign direct investment (FDI) stocks, taking the third place, according to the latest figures.
According to a statement from the Bahrain Economic Development Board (Bahrain EDB), Bahrain secured a record $6.8 billion in FDI inflows in 2023, as reported in the latest World Investment Report (WIR 2024) by the United Nations Conference of Trade and Development (UNCTAD).
Top contributors to Bahrain’s FDI stocks
Remarkably, Bahrain’s FDI stocks relative to GDP stood at 99.7 percent as of the end of 2023, a figure significantly higher than the global average of 46.9 percent, marking one of the highest ratios in the world.
Based on data from Bahrain’s Information & eGovernment Authority, the top countries contributing to Bahrain’s FDI stocks as part of a diverse portfolio include Kuwait (36 percent), Saudi Arabia (23 percent) and the UAE (10 percent).
Remarkable increase in FDI inflows
The 2023 FDI inflows marked a huge increase of 148 percent from the previous record of $2.8 billion in 2022, contributing to the growth of cumulative inward FDI stocks, which climbed from $36.2 billion in 2022 to $43.1 billion in 2023.
Noor bint Ali Alkhulaif, Bahrain’s minister of Sustainable Development and chief executive of Bahrain EDB, stated that “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.”
Bahrain’s economic growth and diversification
Furthermore, Bahrain’s nominal GDP increased from around $11 billion in 2003 to over $43 billion in 2023, marking an average annual growth of 7 percent, surpassing the global average of 5 percent. In addition to securing healthy economic growth, Bahrain’s economy also diversified, with the financial services sector overtaking the oil sector as the highest contributor to real GDP, standing at 17.8 percent in 2023, a significant milestone.
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