Bahrain’s economy expands on non-oil sector growth

Bahrain’s economy expanded by 3.3 percent year on year in the first quarter of 2024, thanks to growth in non-oil sectors, especially accommodation and food service.

The non-oil sector grew by 3.3 percent, accounting for 86 percent of overall GDP in the first three months of 2024, state-run Bahrain News Agency reported, citing finance ministry’s economic performance report.

The oil sector rose by 3.4 percent. Details on oil production and revenue were not given.

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Bahrain is the Gulf region’s oldest oil producer. Its onshore Bahrain Field dates back to 1932 and is still in production. Today, most of the kingdom’s oil comes from the offshore Abu Safah field, which Bahrain shares with Saudi Arabia. 

The overall GDP reached BD3.6 billion ($9.6 billion) in the first quarter, compared to BD3.5 billion in the same quarter of 2023, the finance ministry said.

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Accommodation and food service activities led the growth at 11 percent year on year, driven by a 32 percent annual rise in inbound tourists and a 1 percentage point increase in hotel occupancy rates of 4- and 5-star hotels to an average of 51 percent.

The financial and insurance activities sector recorded the second-highest growth among non-oil sectors, rising by 7.4 percent year on year thanks to an increase in the total value of the electronic fund transfer system and aggregate balance sheet of the banking system.

The ministry expects the economy to grow by 3 percent this year, primarily supported by non-oil sectors.