Bahrain is positioning itself as the most liberal economy in the Middle East, shifting its focus from Formula One to finance and technology. The country's financial sector has overtaken oil and gas and is the largest contributor to Bahrain's GDP at 17.5%. Bahrain has a deep and long-lasting relationship with the UK, with British banking giants playing a dominant role in the country's financial industry. The country's sovereign wealth fund, Mumtalakat, is planning to invest in the UK, including in the North of England. Bahrain is also emphasizing its liberal values, such as allowing alcohol and same-sex relationships, to attract global firms and their international workforce. Bahrain's economy has grown significantly since the arrival of Formula One in 2004, with national income reaching over £35 billion in 2022 [b85a74d1].
Bahrain has ambitions for development but faces challenges due to its dependence on hydrocarbon revenue, debt levels, and its position in the Gulf Cooperation Council (GCC). Efforts to attract foreign direct investment are progressing, with FDI inflows reaching $2.76 billion in 2022. Bahrain's government issued bonds to meet debt repayments and retain institutional confidence. The country's budget deficit is expected to widen, and it faces significant debt repayments in the coming years. Bahrain's economy is heavily reliant on oil, and plans to expand oil and gas production are underway. The government aims to diversify the economy by nurturing non-oil sectors, such as tourism, financial services, manufacturing, transport, and logistics. Bahrain is also focusing on cloud technology and attracting international companies. Simplifying regulations, upskilling the workforce, and ensuring political stability are crucial for Bahrain's long-term viability and attracting investors. The country's strategic location in the Gulf region is both advantageous and challenging. Bahrain needs to reassure investors and navigate geopolitical tensions while pursuing its development goals [c9eede5f].
Meanwhile, The Bahamas is seeking to attract foreign investment to diversify its economy, which currently relies on tourism and financial services. The country will host Afreximbank's Annual Meetings in Nassau from June 12-14, 2024, as the institution looks to build ties with the Caribbean. The government aims to promote the manufacturing and digital technology sectors by offering tax and other incentives. The Bahamas, a member of the Commonwealth, became independent in 1973 and has a high-income state with a GDP per capita of $34,224. The country is recovering from the impact of Hurricane Dorian in 2019 and the Covid-19 pandemic, which caused a contraction in GDP. The government plans to revamp the tourism model to focus more on local culture and is introducing measures to support the offshore financial services industry. The Bahamas is seeking foreign investment in light manufacturing, technology, and renewable energy. The country has trade agreements with the US, the UK, and the EU, and is working to promote intra-regional trade as a member of CARICOM [d0afc1ee].