When the oil-rich countries in the Arabian Gulf were beginning to reap the benefits of crude oil exports in 1970s and 1980s, Bahrain launched and aggressively carried the economic diversification efforts. Resultingly, the contribution of the non-oil sector toward Bahrain’s GDP has been rising over the decades reaching 85 percent in 2024 and 2025, writes Atique Naqvi, a senior journalist based in Toronto.

In the post-digital world, Bahrain’s center of activity, the city of Manama, has stiff yet healthy competition from the GCC financial centers such as Dubai, Riyadh and Doha. However, one must acknowledge that when it comes to reforms and financial services Bahrain has been the pioneer in the region, the author adds.