The Kingdom of Bahrain witnessed a positive economic year in 2023, supported by the performance of the non-oil sector and growth in the tourism, financial projects and trade sectors.
The Ministry of Finance and National Economy of the Kingdom of Bahrain issued its economic report for the year 2023, which highlights the Kingdom’s strong economic performance over the past year.
GDP grew by 2.4% in constant prices in 2023, supported by higher non-oil sector growth of 3.4%. This growth is a positive indicator of the Bahraini economy’s ability to adapt to global challenges and achieve stability and diversification.
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The non-oil sectors played a major role in supporting economic growth, as their contribution to the gross domestic product reached 83.9% at constant prices, the highest percentage in Bahrain’s history.
The hotel and restaurant sector topped the list of non-oil sectors in terms of growth, as the number of visitors arriving for tourism purposes increased by 24.7%, and tourist nights increased by 46.0% to reach 19.0 million nights.
Other sectors witnessed notable growth, including the financial projects sector (5.7%), the trade sector (5.3%), and the real estate activities and business services sector (4.1%).
The balance of foreign direct investments reached 16.2 billion Bahraini dinars during the year 2023, with a growth rate of 18.9% compared to the year 2022. This growth reflects investors’ confidence in the Bahraini economy and its attractiveness for foreign investments.
Global competitiveness reports and indicators showed an outstanding performance for the Kingdom of Bahrain. The countries of the Middle East and North Africa region topped the indicators of freedom of trade, freedom of investment, and financial freedom, and achieved eighth place in the sub-index “Essentials of Doing Business” within the Agility Logistics Index.
