MANAMA: The Kingdom of Bahrain has attracted $1.5billion foreign direct investments (FDIs) in 2018, attributed largely to the manufacturing sector, says the UNCTAD report.
The United Nations Conference on Trade and Development (UNCTAD) report attributed continued growth in FDIs to increased interest in manufacturing sector of Bahrain.
“The UN report is yet another affirmation of Bahrain’s growing attractiveness to investors from around the world,” His Excellency, Khalid Al-Rumaihi, Chief Executive of the EDB told the Press conference during the UNCTAD report launch ceremony held at the EDB Headquarters on Wednesday.
“We are
increasingly becoming an attractive investment destination in the Middle East,
thanks to our ability to offer a flexible, agile and highly competitive
economy, that is not only diversified, but also sustainable in the long-term.”
“As overseas investment into Bahrain continues to grow, we must remain focused on what is attracting investors to the Kingdom. Our ability to work collaboratively across the public and private sectors to build a business-friendly environment is the foundation to our economic success, and will continue to be the number one draw for entrepreneurs, startups and multinationals alike.”
The UNCTAD has published its annual World Investment Report (WIR), which found that foreign direct investment (FDI) into Bahrain rose to $1.5 billion in 2018. This year the Bahrain Economic Development Board (EDB) hosted the launch of the report, which charts global investment flows, analyses trade trends and examines government policies that seek to expand world trade.
The $1.5 billion – representing a 6 per cent rise from last year – is mainly due to growing interest in the manufacturing sector. In 2018 both Mondelez International (United States) and Ariston Thermo Group (Italy) set up manufacturing facilities in Bahrain International Investment Park, a Special Economic Zone (SEZ). The two companies were amongst 32 new or expanding businesses choosing Bahrain for their Manufacturing, Transport or Logistics hub that year. Bahrain is continuously developing the air, sea, and road networks to facilitate the entry of imports to Bahrain, as well as reducing complexity of procedures, and the speed of the customs process means businesses can clear their goods in less than 24 hours. The Kingdom’s rich heritage as a trading nation, superior infrastructure connectivity and de facto status as the gateway into MENA are all qualities highly prized by overseas investors.
SEZs are the theme of WIR 2019, and their successful application by Bahrain is reflective of the Kingdom’s use of innovative regulation more broadly. This includes the introduction of the region’s largest FinTech hub, Bahrain FinTech Bay; its first regulatory sandbox that allows startups and entrepreneurs to test new products and services; and a commitment to encourage new ways of working such as cryptocurrencies, for which the Central Bank of Bahrain issued comprehensive regulations earlier this year.
