Bahrain Celebrates Record-Breaking $6.8 Billion FDI Inflows in 2023

Bahrain Celebrates Record-Breaking $6.8 Billion FDI Inflows in 2023

By Staff Writer, 21 June 2024

Bahrain has achieved a historic milestone with $6.8 billion in foreign direct investment (FDI) inflows in 2023, as reported in the latest World Investment Report (WIR 2024) by the United Nations Conference on Trade and Development (UNCTAD).

This record-breaking figure represents a 148% increase from the $2.8 billion recorded in 2022, significantly boosting the cumulative inward FDI stocks from $36.2 billion in 2022 to $43.1 billion in 2023.

Bahrain's FDI stocks relative to GDP reached 99.7% by the end of 2023, far surpassing the global average of 46.9%. Major contributors to Bahrain's FDI portfolio include Kuwait (36%), Saudi Arabia (23%), and the UAE (10%), according to Bahrain’s Information & eGovernment Authority.

Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of the Bahrain Economic Development Board (EDB), emphasized the significance of these inflows. “The milestone FDI inflows attracted in 2023 reflect the strength of Bahrain’s value proposition and continued standing as a trusted destination of choice for regional and global investors seeking best value operating costs in a strategic location that serves as an ideal gateway to the region and beyond,” she stated.

The Bahraini government remains committed to fostering a conducive investment environment through the development of forward-looking regulatory frameworks and strategic economic plans. This approach aims to stimulate economic growth and diversification, as highlighted in an EDB statement.

Bahrain’s nominal GDP has risen from approximately $11 billion in 2003 to over $43 billion in 2023, marking an average annual growth rate of 7%, surpassing the global average of 5%. The country's economy has not only grown but also diversified, with the financial services sector now the leading contributor to real GDP at 17.8% in 2023, overtaking the oil sector.

This remarkable economic progress underscores Bahrain's emergence as a leading investment hub, attracting global investors and driving sustainable growth and development.

Source: Trade Arabia

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