Bahrain’s FDI inflows surge by record $1.95bn in 2022

Setting a new record, Bahrain’s Foreign Direct Investment (FDI) inflows increased by $1.95 billion in 2022 while global FDI fell by 12 per cent, according to the latest World Investment Report (WIR 2023) by the United Nations Conference of Trade and Development (UNCTAD).

Bahrain’s inward FDI stock has increased by 5.82 per cent from $33.484bn at the end of 2021 to $35.436bn as of end-2022, the report shows.

FDI stock is the total accumulated level of direct investment at the end of a given period (usually quarter or year).

If the inward FDI stock of a country increases over time, it means that there is more foreign investment flowing into that country. This can be a sign of economic growth and development.

FDI stock can also be used to measure the impact of FDI on a country’s economy. For example, if the inward FDI stock of a country is high, it is likely that the country will benefit from increased employment, technology transfer, and economic growth.

Commenting on the achievement, Khalid Humaidan, chief executive of Bahrain Economic Development Board (EDB), said: “This milestone achievement of almost $2bn in FDI inflows reflects the robust level of investor confidence in Bahrain’s value proposition, encouraging local and international investments that are backed by a highly skilled workforce and best value operating costs serving as a gateway to the region.”

Mr Humaidan added: “This record increase in FDI inflows is supported by Team Bahrain’s swift agility in successfully driving in solid investments and securing value-adding projects across priority sectors. I am confident in our ability to maintain a strong pipeline of investments in 2023 and beyond.”

The Bahrain EDB is the national investment promotion agency.

Bahrain has made laudable progress in diversifying its economy, growing opportunities for local and international businesses and maintaining steady investor confidence, as well as consistently increasing the kingdom’s FDI inflows.

While economic diversification efforts have long been underway in Bahrain, the Economic Recovery Plan (ERP) formed in 2021 embraced a focused development plan with an overarching aim of enhancing Bahrain’s competitiveness on an international level by reprioritising the economy and underscoring strategies across high value sectors.

To ensure the kingdom remains an attractive destination for investment, the government has recently launched the ‘Golden Licence’ and continues to maintain an ongoing commitment to streamline commercial procedures on a regulatory front, further boosting the country’s business-friendly environment.




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