The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Bahrain: diversifying away from oil

Middle East: Arab banks lay regional plans

Saudi Arabia and Kuwait: closed-economy cousins

Oil lows hit UAE, Oman and Qatar


Bahrain is the smallest economy in the Gulf Cooperation Council and together with Oman is considered to be a developing nation. This entitles it to funds from the Arab Fund for Social and Economic Development, an Arab version of the World Bank, which it needs. GDP growth will likely stay flat to slightly negative in the next two years. Most forecasts show shrinkage of between 0.5% and 1%. However, Bahrain has been the most active GCC country in diversifying away from reliance on oil. This now contributes just 46% of government revenue - it was 60% as recently as 1997.

In the next two fiscal years Bahrain is holding budget expenditure to 1998 levels of around $1.73 billion. Total revenue is projected to be $1.35 billion, some 10% less than the 1998 budgeted levels. As a result, departmental overheads are being reduced and all governmental programmes and expenditures are being reviewed.

However, despite the austerity budget, the government has pledged to increase recurrent spending on health, education, and social services by 4% this year and 5% next year.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree