*Though global FDI contracted by 35 percent, Bahrain’s inward FDI stocks increased 3.3 percent to reach $31.7 billion in 2020
*World Investment Report 2021 Bahrain government plans to continue its reforms to attract direct investments
Bahrain’s foreign direct investment (FDI) inflows increased by $1.007 billion in 2020, according to the latest World Investment Report (WIR 2021) from the UN Conference of Trade and Development (UNCTAD).
The annual report charts global investment flows, analyses trade trends, and examines government policies that seek to expand world trade.
The report, according to TradeArabia, highlighted that global FDI contracted by 35% to $1 trillion in 2020, with an expectation for flows to bottom out and increase by 10-15% in 2021.
Despite global trends, Bahrain experienced a 3.3% increase in inward FDI stocks, reaching $31.7 billion in 2020.
According to TradeArabia, also highlighted was Bahrain’s stock to GDP ratio, where Bahrain’s inward FDI stocks relative to GDP reached 92%, the highest-ranking in the GCC and surpassing the global average of 49%.
The report recognized the government of Bahrain’s plans to continue implementing wide-ranging reforms to attract direct investments and link it to its national development and economic diversification plans.
A wide range of sectors drove investment, demonstrating Bahrain’s strides in diversifying the non-oil sector. Some of the sectors mentioned in the report include manufacturing, education, healthcare, and information technology industries, the TradeArabia report said.
Khalid Humaidan, Chief Executive of Bahrain Economic Development Board, said, “We are looking forward to continuing working with our partners to attract investment into the Kingdom and support existing companies expand, further diversifying our economy and creating jobs in the local market.”
The EDB is the government’s Investment Promotion Agency, mandated to attract investments into Bahrain and continue to drive economic diversification and create jobs in the local market.