Bahrain achieved a record-breaking $6.8B in foreign direct investment (FDI) inflows in 2023, as reported in the latest World Investment Report (WIR 2024) by UNCTAD.
This marks a substantial 148% increase from the $2.8B received in 2022, reinforcing Bahrain’s status as a highly sought-after destination for both regional and global investors.
The growth in FDI bolstered cumulative inward FDI stocks, rising from $36.2B in 2022 to $43.1B in 2023.
By the end of 2023, Bahrain’s FDI stocks relative to GDP stood at 99.7%, significantly surpassing the global average of 46.9%.
According to Bahrain’s Information & eGovernment Authority, the main contributors to FDI stocks were Kuwait (36%), Saudi Arabia (23%), and the UAE (10%).
Noor bint Ali Alkhulaif, Minister of Sustainable Development and CEO of Bahrain EDB, highlighted: “The significant FDI inflows in 2023 underscore Bahrain’s appeal as a trusted destination for investors seeking strategic advantages and efficient operations.”
Bahrain has solidified its reputation as an attractive investment hub, supported by progressive regulatory frameworks and strategic economic plans aimed at fostering growth and diversification.
From around $11B in 2003, Bahrain’s nominal GDP grew to over $43B by 2023, achieving an average annual growth rate of 7%, outpacing the global average of 5%.
In 2023, the financial services sector became the largest contributor to real GDP at 17.8%, surpassing the oil sector.
Minister Alkhulaif emphasized: “Bahrain’s government agility, skilled bilingual workforce, and financially open environment have positioned it as a leading investment destination.”
The Golden License initiative, launched in April 2023, has been pivotal in attracting investments, securing $2.4B from nine major projects and creating 3,000 job opportunities.
Noteworthy projects awarded a Golden License in 2024 include Bahrain Titanium by Interlink Metals & Chemicals, National Bank of Kuwait’s first international head office, a data center and submarine cable by Beyon, and Bahrain Marina development.
