Bahrain’s economy expanded by 3.3 per cent in the first three months of the year, according to the Ministry of Finance and National Economy in its Economic Quarterly Report for Q1 of 2024.

The report shows continued momentum in the non-oil economy, driven by strong growth in key sectors, in line with Bahrain’s broader economic plan.

According to preliminary data from the Information and eGovernment Authority (IGA), the Kingdom of Bahrain’s economy grew by 3.3 per cent year-on-year (YoY) in real terms in Q1 of 2024, underpinned by growth in both the non-oil sector 3.3 per cent YoY and oil sector 3.4 per cent YoY.

Bahrain economic growth

In nominal terms, Bahrain’s GDP grew by 3.4 per cent YoY, with the non-oil sector increasing by 2.8 per cent YoY and the oil sector by 7.4 per cent YoY.

The report highlighted the role of non-oil sectors in driving economic growth, with Bahrain’s non-oil sector accounting for 85.9 per cent of real GDP in Q1 2024.

The Accommodation and Food Service Activities led the growth at 10.7 per cent YoY, driven by a 31.7 per cent YoY rise in inbound tourists and a 1 percentage point increase in hotel occupancy rates for 4- and 5-star hotels averaging 50.8 per cent in Q1 2024.

The Financial and Insurance Activities sector recorded the second-highest growth among non-oil sectors, rising by 7.4 per cent YoY.

This was reflected in the positive performance of many indicators, including the 14.3 per cent YoY increase in the total value of the Electronic Fund Transfer System (Fawri+, Fawri, and Fawateer) and a 10.9 per cent rise in the assets within the aggregate balance sheet of the banking system.

The Information and Communications sector increased by 6.6 per cent YoY, driven by a 13.8 per cent growth in mobile subscribers and a 3.1 per cent increase in broadband subscribers.

Moreover, the Wholesale and Retail Trade sector grew by 5.7 per cent YoY, as the value of Point of Sale and e-commerce transactions rose by 9 per cent YoY, and new company commercial registrations were up by 4.5 per cent.

The Transportation and Storage sector grew by 5.3 per cent YoY, driven by an 11 per cent increase in passengers traveling through Bahrain International Airport and a 10 per cent rise in aircraft movements.

The Manufacturing sector grew by 3.9 per cent YoY, with production at Bapco Refining and Aluminium Bahrain (Alba) increasing by 25.3 per cent and 1.9 per cent respectively.

The Real Estate Activities sector saw a 0.9 per cent YoY growth, with real estate trading values rising by 22.8 per cent and transaction volumes by 12.8 per cent.

The report also highlighted the Kingdom’s performance in global competitiveness reports and indices. Bahrain’s global competitiveness improved, moving up nine places since 2022 and four places since 2023, to rank 21st in the World Competitiveness Ranking 2024 published by the Institute of Management Development (IMD).

Moreover, Bahrain’s ranking in the ICT Development Index (IDI) 2024, published by the International Telecommunications Union (ITU), improved by two spots to fifth out of 170 countries.

The Khalifa Bin Salman Port was also classified as the most efficient small port globally, ranking 43rd out of 405 ports in the Container Port Performance Index 2023 published by The World Bank Group and S&P Market Intelligence.