MANAMA: The Kingdom of Bahrain which recorded a real GDP growth of just short of 3% for the year 2015, is continue to be resilient in 2016 as a whole, according to a top official at the Economic Development Board (EDB).
Mr. Khalid Al Rumaihi, Chief Executive of the EDB while talking to the media during a Ramadan Annual Ghabgha at the Four Seasons Hotel said that the resilience which has been hallmark in the past many years is attributable to the economic diversification the Kingdom had gone through in the past one decade.
Referring to the efforts of the Kingdom to enhance the base of the economy by moving away from hydrocarbon revenues Mr Al Rumaihi said that Bahrain was the first country in the region to open up all vital areas for the private sector.
In 2015, the growth was particularly strong in construction, private education and health care, and the tourism sector.
“Bahrain is probably one of the most diversified economies in the Gulf region, as we are talking about 80% economic activity in the non-oil sector which speaks volumes of the diversified economic base,” Mr. Al Rumaihi said.
“The GDP growth of close 3% we saw last year was driven by non-oil sector and we expect to see the resilience of the economy this year as well and expecting growth of 2.5% to 3% in 2016. I am quite positive to see the sustained pattern of growth in the country especially when we are looking at the very healthy projects in the pipeline for 2016 and beyond.
“We are talking about roughly $32billion projects in the pipeline and the contractors and other companies of supply chains are quite positive about the impact on business of the planned infrastructure development. In the retail sector there is a weakness on consumer side but this is expected to be picked up later this year. We have not seen yet the impact of the proposed $7.5billion Gulf Fund and $1billion Bahrain Airport Modernisation project. We will start to see the schools, roads and other developments as the money goes into contracting side will reinvigorate the whole economic cycle. So, the economic outlook remains positive,” Mr. Al Rumaihi, added.
