Business confidence index in Bahrain surges 2.8%
Nine out of 10 (89 percent) investors expect stability in Bahrain’s investment climate for the second quarter (Q2) of this year, according to a government survey on the Business Confidence Environment in the Kingdom.
According to findings from the Information and eGovernment Authority in Bahrain, the Business Confidence Index (BCI) stood at 98.13 points in Q2 of 2022 compared with 95.46 points in Q1 of 2022, an increase of 2.67 points or 2.8 percent.
The current index has shown a rise of 13.01 points compared with the same period of 2021.
The quarterly survey measures business confidence by company size, industry, and investment type.
A positive outlook overall was recorded in the business performance, profits, and competition sub-indices in Q2-2022.
The results revealed that 89 percent of companies have a stable to an optimistic outlook, which is an increase of 1.25 percent compared with the previous quarter.
Nearly half (48.1 percent) of companies expect a stable business performance, while 40.9 percent anticipate improvement.
The survey revealed that a total of 80.8 percent of companies experienced stable to favorable business performance during Q1 of 2022, wherein 59.1 percent of companies revealed stability in their performance, while 21.7 percent expressed overall satisfaction.
In contrast, 19.2 percent of companies showed dissatisfaction with their business performance.
The availability of this information helps foster an investor-friendly and competitive business environment, allowing decision-makers to take appropriate actions based on confidence levels relative to company size, industry, and investment type.
Business confidence indices are calculated using the results of quarterly surveys carried out by iGA on a sample of the business community.
These range from micro to large enterprises, including those classified as foreign and local investments.
The aim of the survey is to provide an indicator of the confidence levels of active establishments registered at the Industry and Commerce Ministry as well as those licensed by the Central Bank of Bahrain (CBB).
Last May, the International Monetary Fund (IMF) said that Bahrain’s economy would grow by 3.4 percent this year, up from 2.2 percent recorded at the end of 2021.