Analysis Economy Ratings agency moves Bahrain outlook to negative A major ratings agency has downgraded its outlook on Bahrain to negative, warning that fiscal reforms may be insufficient to lower the kingdom’s debt-to-GDP ratio and that foreign currency reserves remain weak. Lower oil prices and reduced crude production due to maintenance work at Bahrain’s Abu Safah oil field, which it shares with Saudi Arabia, […] April 24, 2025
Banking & Finance Al Ansari says BFC buyout will lift revenues by a fifth Dubai-listed Al Ansari Financial Services expects a 13 percent rise in profits and a 20 percent increase in revenues following its acquisition of BFC Group Holdings, a competing money exchange business, the company CEO has said. “After completing the BFC deal, we have become the largest exchange company in the UAE and Bahrain and the […] April 15, 2025
Industry Investcorp Capital earns 40% profit on sale of US industrial assets Abu Dhabi-listed Investcorp Capital has sold its US industrial real estate portfolio, generating a high return on investment. The US National I portfolio, spanning six investments across six states and 2.3 million square feet, was sold for $360 million, a 40 percent gain over its initial purchase price of $262 million less than four years […] April 8, 2025
Analysis Artificial Intelligence AI ‘employees’ make their mark in the Gulf From customer service to the C-suite, AI “employees” are climbing the corporate ladder in the Gulf as the technology behind them improves. Regional wealth funds such as ADQ are now using AI “boardroom advisers” to help make decisions according to Middle East AI News, while startups are raising capital and launching so-called “AI employees”. These […] April 4, 2025
Editor's Insight Economy Bahrain at a crossroads: Economic challenges loom The nodding donkeys in Awali, where oil was first discovered in the centre of Bahrain in 1932, are museum pieces now. The government is pushing for the surrounding oil settlement, an unreconstructed mid-twentieth century company town complete with cricket pitch, pub and church, to be listed by Unesco as a world heritage site. To the north […] March 28, 2025
Tax Bahrain approves environmental tax on companies Bahrain is to become the first country in the Arabian Gulf to introduce an environmental tax on companies as the island state struggles to rein in a growing budget deficit and bring government finances under control. The government of the region’s smallest nation by population has approved in principle a levy on carbon dioxide emissions […] March 26, 2025
Real Estate Bahrain struggles to fill existing office space as supply grows Bahrain is facing difficulty in filling its available office space even as the kingdom prepares for more supply. Demand for the space is “weak”, with limited interest from existing businesses and new entrants, commercial real estate services and investment provider CBRE said in a report. The Gulf state, the smallest by population in the six-member […] March 25, 2025
Analysis Tax Bahrain considers raising taxes to reduce deficits Bahrain’s plan to end a long string of government budget deficits could prove burdensome to both businesses and people as it considers a raft of tax measures. The country is discussing a 12-point plan for its two-year budget, with measures including the introduction of a wider corporate tax, an increase in value added tax (VAT) […] March 6, 2025
Economy Fitch lowers Bahrain outlook on rising debt levels Fitch, one of three influential ratings agencies, has placed Bahrain on a negative outlook amid growing concerns over increasing debt, low levels of foreign currency and high budget deficits. Debt is projected to rise from 130 percent in 2024 to 136 percent of GDP in 2026 “with a continued upward trajectory over the medium term”, […] February 24, 2025
Banking & Finance HSBC to sell Bahrain retail banking operations Hong Kong-listed HSBC has agreed to sell its retail banking operations in Bahrain to Bank of Bahrain and Kuwait (BBK) as part of a global restructuring at the bank. The deal will see a transfer of retail loans, deposits and accounts of about 76,000 customers to Bahrain-bourse listed BBK, which is majority owned by the governments […] February 19, 2025
Manufacturing Bahrain space agency explores satellite manufacturing Bahrain’s National Space Science Agency (NSSA) has signed a memorandum of understanding with a Hong Kong-listed industrial satellite manufacturer to cooperate in satellite manufacturing. In addition, NSSA will work Uspace Technology Group in satellite telemetry, tracking and controlling, and data application activities, according to a statement to the Hong Kong Stock Exchange. Uspace plans to […] February 13, 2025
Retail Bahrain duty free operator’s 2024 earnings rise 17% Bahrain Duty Free Shop Complex, the operator of duty free shopping at the country’s international airport, said net profit increased 17 percent to BD5 million in 2024 compared to BD4.3 million a year ago. Total income increased to BD3.4 million, rising 44 percent year on year. Profits from investments reached BD6.1 million last year, up […] February 11, 2025
Economy Bahrain to increase oil revenue contributions to wealth fund Bahrain has approved plans to increase its contribution from its oil revenues to its Future Generations Reserve wealth fund. King Hamad of Bahrain approved a new modified savings format, amending the 2006 law that dates back to when the sovereign wealth fund was established. The fund was created to allocate and invest amounts deducted from oil […] February 3, 2025
Tax Bahrain’s expat tax move ‘likely to be replicated GCC-wide’ Bahrain is proposing to levy a tax on expatriate remittances, a move an industry expert believes is likely to be replicated in other neighbouring Gulf countries. Members of parliament in the kingdom this week supported a revised proposal which would mean expat remittances face a two percent tax. “It would not surprise me if other […] January 30, 2025
Real Estate Bahrain’s Arcapita to set up $1bn real estate investment trust Arcapita Group Holdings, a Bahrain-based global alternative investment company, is planning a real estate investment trust (REIT) of its property assets in the Middle East valued at $1 billion, a news report said. Banks have been approached to set up the REIT, Bloomberg reported, citing sources familiar with the matter. The report said the plan […] January 29, 2025
Finance Investcorp chairman weighs IPO or deal with strategic investor Investcorp is considering a tie-up with a strategic investor or an initial public offering in the next few years, its executive chairman has said. Mohammed Alardhi said the Bahrain-based alternative asset manager had streamlined its strategy and reshuffled its leadership and management teams. For its next period of growth, Investcorp may look to outside investment, […] January 21, 2025
Economy Bahrain debt hits $48bn but analyst downplays spending fears Bahrain’s public debt has risen to almost BHD18 billion ($48 billion), according to its ministry of finance, but a banking expert has downplayed concerns over its spending. Bahrain, the smallest country in the GCC bloc of six with a population of almost 1.5 million people, has dwindling reserves of oil and gas. It is partially […] January 20, 2025
Economy Lebanon and Sudan swell Arab countries’ public debt Public debt in Arab countries swelled by nearly $142 billion at the end of 2023, mainly because of a sharp rise in obligations by Lebanon and war-battered Sudan. Total debt increased despite a fall in Egypt’s public, mostly domestic, dues as a result of a large depreciation in the pound against the US dollar. The […] January 20, 2025
Finance Bahrain’s Investcorp agrees to buy Italy’s Epipoli Bahrain’s Investcorp has finalised a deal to acquire Epipoli, an Italian alternative payments company. The asset will be purchased from London-headquartered private equity Bregal Milestone and Epipoli founder and CEO Gaetano Giannetto. Giannetto will continue to hold a significant minority stake and lead the company. No terms of the transaction were disclosed. Epipoli owns the […] January 17, 2025
Manufacturing Alba and Ma’aden end merger discussions Aluminium Bahrain (Alba) and the Saudi Arabian Mining Company (Ma’aden) have ended talks over a merger of the two Gulf manufacturing giants. Discussions had been taking place since last year and it had been hoped that a deal could be completed in the first quarter of 2025, according to Alba’s chief executive, Ali Al Baqali. […] January 13, 2025
