Skip to content Skip to Search
Skip navigation

Bahrain attracts a record $6.8bn in foreign investment

By Megha Merani
People walk through the souk in Manama, Bahrain; FDI has been encouraged by the golden licence programme for investors Jakub Porzycki/NurPhoto via Reuters Connect
People walk through the souk in Manama, Bahrain; FDI has been aided by the golden licence programme for investors
  • Bahrain FDI investment up 148%
  • Kuwait is top contributor
  • Global high of 99.7% FDI to GDP

Bahrain has set a new record by attracting $6.8 billion in foreign direct investment (FDI) in 2023.

This is a 148 percent increase from the previous year’s $2.8 billion, according to the latest World Investment Report by the UN Conference on Trade and Development.

Kuwait emerged as the top contributor, accounting for 36 percent of the total FDI, followed by Saudi Arabia with 23 percent and the UAE with 10 percent, the official data shows. 

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

This surge increased Bahrain’s cumulative inward FDI stocks from $36.2 billion in 2022 to $43.1 billion in 2023, reflecting one of the highest global ratios of FDI to GDP at 99.7 percent — far exceeding the worldwide average of 46.9 percent.

Noor bint Ali Alkhulaif, minister of sustainable development and chief executive of Bahrain EDB, said in a statement to Bahrain News Agency that the milestone FDI inflows attracted in 2023 “reflects the strength of Bahrain’s value proposition… for investors seeking best value operating costs in a strategic location that serves as an ideal gateway to the region and beyond”.

FDI stocks, a key economic indicator, represent the total direct investments maintained by foreign entities within a country by year end. 

These stocks, valued in USD and expressed as a share of GDP, provide insights into the scale of foreign investment relative to the size of the economy.

Blazer, Clothing, Coat Noor bint Ali Alkhulaif said the growth 'reflects the strength of Bahrain’s value proposition'Bahrain News Agency
Noor bint Ali Alkhulaif said the growth ‘reflects the strength of Bahrain’s value proposition’

Bahrain has demonstrated robust economic growth despite being the smallest economy in the GCC with a projected GDP of $47 billion for this year. 

Since 2003, its nominal GDP has grown from around $11 billion to more than $43 billion in 2023, achieving an average annual growth of 7 percent. 

The financial services sector has notably surpassed oil as the highest contributor to real GDP, accounting for 17.8 percent in 2023.

Bahrain’s proactive economic diversification efforts include the golden licence programme, which has been central to attracting substantial regional and international investments. 

In 2023, the programme facilitated $2.4 billion in investments from nine major projects, expected to create 3,000 jobs. 

Recent beneficiaries of the golden licence include Bahrain Titanium by Interlink Metals & Chemicals, the construction of the National Bank of Kuwait’s first greenfield office outside Kuwait, a new data centre and submarine cable by Beyon and the Bahrain Marina development.

Introduced in April 2023, the golden licence offers significant incentives such as priority land allocation, streamlined business licensing and enhanced support from local development banks and labour funds. 

Available to both local and international firms, this initiative also includes potential regulatory reviews to ease investment processes.

Latest articles

Sainsbury's has the second-largest share of the UK grocery market, at 15 percent, behind Tesco at 28 percent

Qatar to reduce stake in UK supermarket Sainsbury’s

Qatar’s sovereign wealth fund is selling part of its 15 percent stake in the British supermarket Sainsbury’s as the fund pushes ahead with expansion in the United States and Asia, particularly China and India. Qatar Investment Authority (QIA), the biggest shareholder in Sainsbury’s, is selling £306 million ($399 million) worth of shares in the retailer, […]

Shoppers in Kuwait's Avenues Mall – the IMF says the country needs to encourage private sector employment

Kuwait needs to push reforms for economic growth, says IMF

Kuwait must accelerate the introduction of fiscal and structural reforms that are needed to increase private sector-led growth and diversify its economy away from hydrocarbons, the International Monetary Fund said on Friday. Kuwait’s economy will contract by 3.2 percent this year because of an Opec+ oil production cut, but will grow by 2.8 percent in 2025 […]

Thani Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, (UAE) speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said 'Malaysia offers substantial opportunity for our exporters, industrialists and business leaders' UAE Malaysia Cepa

UAE and Malaysia sign Cepa to increase bilateral trade

The UAE and Malaysia have signed a free trade deal, bringing the number of deals the Gulf state has agreed with foreign governments to 12. The comprehensive economic partnership agreement (Cepa) will seek to eliminate or reduce tariffs, lower trade barriers, increase private sector collaboration and create new investment opportunities, the two countries said in a […]

Modern buildings in the city center of Riyadh, Saudi Arabia

Riyadh leads Saudi Arabia’s hot property market

Strong population and employment growth in Riyadh is driving a surge in real estate transactions as new properties cannot come on the market fast enough. A dramatic rise in the number of deals in the 12 months to the end of June was also visible in Jeddah and Dammam, according to a report this week […]