Bahrain: Economy surges 4.9% in 2022, the highest rate since 2013
To strengthen its economy, Manama unveiled a major economic reform plan in 2021
Bahrain's economy grew by 4.9 percent in 2022, the highest rate since 2013. The Gulf nation's growth was driven by a 6.2 percent jump in real non-oil gross domestic product, Bahrain's state news agency reported.
This was the highest rate since 2012 and above the 5 percent annual target set by the economic reform plan. The contribution of the non-oil sector to real GDP reached a record 83.1 percent in 2022. However, the oil economy fell by 1.4 percent last year due to a drop in production.
To strengthen its economy, Bahrain unveiled a major economic reform plan in 2021 that aimed to invest around $30 billion in strategic projects to boost post-pandemic growth, employment for citizens and attract foreign direct investment.
In line with the multi-year plan, the government adopted cost-cutting measures and aims to create more than 20,000 jobs for citizens every year until 2024, and train a further 10,000 through its Tamkeen program. The move is designed to help the country balance its budget by 2024.
Commander of Iran’s navy, Shahram Irani, announced in early June that Tehran plans to form a naval alliance with Bahrain, Qatar, Iraq, Pakistan, India, and the United Arab Emirates (UAE). The Iranians only recently restored relations with several Gulf Arab states, including Bahrain, after its rapprochement with Saudi Arabia under a China-mediated deal in March.
Bahrain and Israel agreed to full diplomatic relations as part of the Abraham Accords, which also saw normalized ties with the UAE. However, the Israeli ambassador to Manama said that the growing ties will "take time" amid concerns over the lack of economic investments between the two countries, in an interview with i24NEWS.