BizBahrain Magazine Nov-Dec 2017

Focus Feature | Economy Review 2017
Sectoral Composition of Growth
Source: Information & e-Government Authority
2015 2016 2017
YoY growth, % Annual Annual Q1 Q2 H1
Crude Pet. & Nat.
Gas
-0.1 -0.1 -3.3 -0.5 -1.9
Manufacturing 3.2 1.3 0.4 -1.9 -0.8
Construction 5.9 5.7 4.6 -0.1 2.2
Trade 2.1 3.0 3.6 5.6 4.6
Hotels &
Restaurants
3.0 2.0 12.3 13.4 23.9
Transp. & Comm’s 6.8 3.2 8.2 5.9 7.0
Social & Pers. Serv. 3.5 9.1 10.1 9.8 9.9
Real Est. & Bus. Act. 1.7 2.8 4.5 5.3 4.9
Finance 4.5 5.2 8.3 7.6 7.9
Government 2.2 2.5 2.6 3.6 3.1
Other 7.9 3.6 6.6 5.6 6.1
GDP 2.9 3.2 3.5 3.3 3.4
countries improving the most in three
or more areas, one of which was “trading
across borders,” a critical factor for
manufacturing companies exporting
their goods to the regional market. This
is in large part due to the consistent work
to improve infrastructure and streamline
procedures at the King Fahd Causeway.
Bahrain’s manufacturing,
transportation and logistics sector is
currently one of the largest contributors
to the country’s GDP, and accounted
for 20.3% of 2016 GDP, and the sector
continues to grow at a significant
rate. Further investments, such as the
ongoing modernization and expansion
of Bahrain International Airport, the
building of a second causeway to
Saudi Arabia and additional regulatory
reforms are expected to further increase
regional and global connectivity, while
making the economy more efficient and
productive, and more competitive at a
global level.
NEW ARRIVALS
AWS, part of Amazon, providing
cloud data storage to more than a million
customers in 190 countries, announced
plans to create cloud infrastructure in
Bahrain to serve the Middle East that
will be operational by early 2019. The
new AWS Middle East (Bahrain) Region
will incorporate three Availability Zones,
a means to ensure greater speed and
reliability than through a single data
centre. Gulf businesses will now find it
easier to take on the world. Via AWS’s
cloud infrastructure, they will be able to
run serious workloads (data processing,
storage and sharing) in ways that weren’t
previously possible.
His Royal Highness Prince Salman
bin Hamad Al Khalifa, Crown Prince of
Bahrain, First Deputy Prime Minister,
and Chairman of the Bahrain Economic
Development Board, commented on the
occasion, “Today’s announcement is a
significant moment for Bahrain and the
region. For the Kingdom, the expansion
of regional cloud capacity builds upon
a business environment that is already
driving innovation and entrepreneurship,
using technology to accelerate economic
diversification in Bahrain. Through
improved efficiencies, access to new
career opportunities, and helping to
enhance the delivery of government
services, this marks further realization of
the principles of sustainability, fairness,
and competitiveness that form the core
of Bahrain’s 2030 Vision.”
Economic forums such as the
Italian-Arab Business Forum to which
Bahrain sent a delegation for the
first time, have proved to be effective
platforms to promote Bahrain’s
proposition internationally and invite
the international community to invest
in Bahrain, while also discussing further
policies the country can take in order to
boost foreign investments.
“Bahrain was a pioneer in
recognizing the importance of economic
diversification in the region. The oil
sector now comprises less than 20% of
total GDP, evidence that Bahrain today
enjoys a business-friendly environment
to investors across a multitude of
economic sectors,” said Khalid Al
Rumaihi, CEO of Bahrain Economic
Development Board.
In a world characterized by rapid
and often disruptive change the creation
of a strong, technology-led start-up
ecosystem has helped prepare for the
economy of the future, capitalizing on
key competitive advantages, like the
qualified human capital available in the
kingdom.
November-December 2017
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