Bahrain’s economy expands  2.5%, fuelled by non-oil sector

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Bahrain’s economy grew by 2.5 percent year on year in real terms in the third quarter of 2023, driven by 4.5 percent annual growth in the non-oil sector, preliminary data released by the Information and eGovernment Authority shows.

The kingdom’s non-oil sector accounted for 83.6 percent of real GDP in Q3 2023, the state-owned Bahrain News Agency reported.

The hotels and restaurants sector recorded the highest growth in the third quarter at 9.4 percent year on year, driven by occupancy rates in 4 and 5-star hotels reaching 49 percent and total tourism overnights surging 17.9 percent to 4.8 million nights.

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The financial corporations sector rose 8.4 percent year on year. The sector’s contribution to total real GDP was the highest among all non-oil sectors for the fourth consecutive quarter, contributing 18.1 percent to total real GDP.

The trade sector rose 5.9 percent year on year, while mall footfall increased by 5.6 percent and the value of point of sale and e-commerce transactions increased by 5.1 percent.

The real estate and business activities sector grew 2.8 percent yearly. Real estate activities rose 5.4 percent annually, as the value of real estate trading jumped 7.1 percent year on year to BHD272 million ($722.28 million).

The report said that total foreign direct investment flows exceeded BHD1.2 billion in the third quarter of 2023.