Bahrain’s economy expected to grow 4% despite challenges

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Monday 20 Jul 2015 - 12:53 Makkah mean time-4-10-1436 (File image) Manama, (IINA) - Bahrain’s economy is expected to grow by at least four percent this year despite global financial challenges and declining oil prices, said a top banking executive. Non-oil sectors would play a crucial role in boosting the economy and spurring growth, Al Baraka Banking Group Chief Executive Adnan Yousef who was quoted as saying by the Gulf Daily News. He stressed the importance of strategic and vital projects, which were carried out last year, including infrastructure, energy and essential services schemes, according to Albawaba news. He highlighted the construction sector, which grew by two digits to exceed 12 percent. Bahrain’s economy, he said, stands to benefit tangibly from the $10 billion Gulf Cooperation Council (GCC) Marshal Plan, describing the government’s $22 billion spending program for the next five years as another major boost. The banking expert expressed confidence in the solid fundamentals and pillars on which the Bahraini economy is based. “Such fundamentals have helped the economy to be more flexible and capable of coping with the fluctuations in oil markets. “Other non-oil sectors are also expected to grow, including hotels, tourism and social services,” he said. Citing updated figures, he said that sectors of trade, retail commerce and manufacturing expanded by 4.6 percent, 4.4 percent and 4.1 percent respectively. “Bahrain is home to 403 financial institutions which employ 14,000 people, of whom more than two thirds are Bahrainis,” he said. According to latest figures, the banking and financial sectors contribute 16.7 percent to Bahrain’s gross domestic product. Bahrain’s overall assets hit $190 billion in February which reflects its solid standing as a major trade, investment and tourism hub in the region. Bahrain is also home to 24 Islamic banks with combined overall assets of $25 billion, besides the assets of Sharia-compliant takaful financial companies, he said. Bahrain has also topped all Arab countries this year on the Heritage Index of Economic Freedom. It has also ranked second in the Arab region and seventh internationally on the World Bank Ease of Doing Business Index. SM/IINA