Foreign investment soars 3.3pc despite Covid

MANAMA: Foreign direct investment into Bahrain continued to grow last year, despite the global impact of the Covid-19 pandemic.

Provisional results of the 2020 Foreign Direct Investment (FDI) Survey showed a 3.3 per cent increase in FDI volume to BD11.9 billion, the Information and eGovernment Authority (iGA) announced.

The survey, conducted in collaboration with the Central Bank of Bahrain and the Economic Development Board, measures the volume and inflows of foreign investments made by key entities in different economic sectors.

This data is vital in helping decision makers set suitable policies to attract further investments and contribute to the kingdom’s development.

The survey showed that the kingdom’s annual FDI inflow during 2020 was approximately BD378.5 million, dominated mostly by professional, scientific, and technical activities (BD370.1m), construction (BD148.4m), and the wholesale and retail sectors (BD139.4m).

Foreign investment from Luxembourg constituted 65.6pc, or BD248.2m of the total, followed by the Cayman Islands with BD93.3m, and India with BD68.6m.

In terms of FDI stocks, the financial and insurance activities dominate with about BD7,811.8m as of end-2020, a decrease of 3.3pc compared with end-Q3 2020, followed by manufacturing sector stocks which amounted to BD1,630m, an increase of 0.5pc compared with end-Q3 2020.

Kuwait remains the biggest contributor in terms of stocks with 28.1pc of total.

The survey identified sources of foreign investment according to investors’ country of residence, in addition to highlighting sectors that attract investment.

It covers companies involved in economic activities, classifying them according to capital, ownership, and the number of employees.

One of the iGA’s most important publications, the FDI Survey helps identify foreign investment indices and flows.

avinash@gdn.com.bh

Source: https://www.gdnonline.com/Details/941875/FDI-soars-33pc-despite-Covid