Kingdom of Bahrain plans to create more than 20,000 jobs annually for citizens by 2024 and attract $2.5bn in foreign direct investment by 2023.
Bahrain unveiled a new economic growth plan targeting $30 billion of investments as it looks to shore up its economy in the wake of the coronavirus pandemic and balance its budget by 2024.
The small Arabian Gulf nation aims to create more than 20,000 jobs annually for citizens by 2024 and attract $2.5bn in foreign direct investment by 2023.
Shaikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, said: “This comprehensive economic and fiscal plan is an investment in our nation’s people, our businesses, and the future of Bahrain.
“The swift healthcare and economic action taken by the government throughout Covid 19 secured the foundations of recovery, as evidenced by the real YoY growth of 5.7 percent in the second quarter of this year. The kingdom is emerging from the pandemic with reasons to be highly optimistic and the plan announced today aims to turbocharge the recovery.
“The plan is also a concrete statement of our intent to secure a balanced budget by 2024 and provide long-term fiscal sustainability, with eight new spending and revenue initiatives complementing our broader economic competitiveness enhancements.”
Bahrain has struggled to keep its finances in check in recent years. The pandemic exacerbated its economic deterioration even after a $10 billion package pledged by rich neighbours in 2018. In an effort to boost revenue, it plans to double its value-added tax to 10 percent, the highest rate after Saudi Arabia.
The International Monetary Fund (IMF) sees Bahrain’s budget shortfall equalling 8 percent of economic output this year, less than half of last year’s 18 percent deficit. If the government achieves its goal of a balanced budget by 2024, it would be the country’s first full-year surplus since 2008, according to IMF data.
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