Bahraini Minister Highlights Critical Role of Financial Institutions in Driving Economic Growth

Sheikh Salman bin Khalifa Al Khalifa, the Bahraini Minister of Finance and National Economy, emphasized the vital role of the financial and banking sector in creating investment opportunities and supporting development to boost economic growth in the country. The minister stressed the importance of enhancing international cooperation and unifying efforts to find solutions that contribute to Bahrain's economic progress.

During a meeting with Abdulmohsen Rashed Al Rashed, the Chairman of GFH Financial Group, and Hisham Al Rayes, the Group CEO, Sheikh Salman highlighted the government's focus on supporting promising sectors and providing them with the necessary resources. "The banking and finance sector plays a critical role in creating investment opportunities and driving economic growth," the minister said, emphasizing the kingdom's efforts to support the sector in line with the comprehensive development process led by King Hamad bin Isa Al Khalifa and followed up by Crown Prince Salman bin Hamad Al Khalifa.

Why this matters: The financial and banking sector is a key driver of economic growth and development in Bahrain. The government's support for this sector, along with efforts to enhance international cooperation, is critical for creating investment opportunities and promoting economic progress in the country.

The Ministry of Finance and National Economy plays a central role in driving the development process in Bahrain by formulating and implementing the country's financial and economic policies, as well as overseeing and directing government investments in line with the kingdom's financial strategies.

In a related development, the Labour Fund, Tamkeen, announced its support for the establishment of PwC Middle East's Regional Service Delivery Centre in Bahrain. This initiative aims to offer up to 250 employment opportunities for Bahraini nationals, enhancing local economic contributions. The centre will provide advisory and operational services across sectors, strengthening Bahrain's position as a hub for local and international institutions to support the Kingdom and neighboring countries.

Bahrain's Gross Domestic Product (GDP) registered an annual increase of 2.4% in 2023 to hit 13.66 billion dinars (36.24 billion). Financial projects are among the largest non-oil sectors contributing to the real GDP with 17.8%, followed by the manufacturing industry with 13.6%. The sectors with the highest non-oil growth were the hotels and restaurants sector with 8%, government services with 6%, and financial projects with 5.7% at constant prices.

Sheikh Salman bin Khalifa Al Khalifa's emphasis on the critical role of the financial and banking sector in driving economic growth underscores the government's commitment to supporting this vital industry. With initiatives like the establishment of PwC Middle East's Regional Service Delivery Centre and the positive growth in Bahrain's GDP, the country is well-positioned to continue its economic progress and create more opportunities for its citizens.

Key Takeaways

• Bahraini finance minister emphasizes banking sector's role in economic growth.
• Govt. supports promising sectors, enhances international cooperation for progress.
• Tamkeen to support PwC's regional service center, creating 250 jobs for Bahrainis.
• Bahrain's GDP grew 2.4% in 2023, with finance and manufacturing as top non-oil sectors.
• Govt. committed to supporting financial sector to drive economic development.