Bahrain says dependence on oil revenues slashed in 2015

Economic Development Board report reveals oil share of real GDP falls to less than 20% as non-oil growth hits 3.9%
Bahrain says dependence on oil revenues slashed in 2015
By Staff writer
Sat 23 Apr 2016 10:15 AM

Bahrain's non-oil growth reached 3.9 percent in 2015, according to the latest update by the Economic Development Board (EDB), while overall GDP growth for the year was 2.9 percent.

Despite the broader regional economic challenges, growth remained positive across all the non-oil sectors, with construction (6.4 percent) and hotels and restaurants (7.3 percent) leading the way, the EDB said in a statement.

It said that the private sector remains a vital factor in the kingdom's continuing economic growth profile, contributing nearly 3 percent to the overall growth figure for the year.

The oil sector share of real GDP fell to only 19.7 percent, demonstrating the success of Bahrain's economic diversification efforts, the statement added.

Financial services (16 percent) and manufacturing (15 percent) continued to account for sizeable elements of the economy with government services (13 percent), construction (7 percent), transport and communications (7 percent), social and personal services (6 percent) and real estate and business activities (6 percent) all prominent.

The report said the total value of the non-oil goods exported stood at approximately $17.5 billion in 2015.

The EDB said significant infrastructure investments have continued to progress, with the total value of projects tendered reaching $3.8 billion by the end of March 2016.

Khalid Al Rumaihi, chief executive of the EDB, said: "Despite the continued global challenges, a range of different indicators continue to demonstrate the resilience and potential of Bahrain's economy.

"The non-oil sector accounts for more than eighty per cent of the economy and the private sector contribution to growth continues to expand, showing the success of our long-term diversification efforts. The positive outlook is underpinned by Bahrain's supportive business environment for investors, including a favourable tax regime, competitive operating costs and an experienced and educated workforce."

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