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At the beginning of 2026, the economy of the Kingdom of Bahrain experienced strong growth during January and February. However, it declined in March due to Iranian attacks that affected maritime navigation and oil exports, leading to a 3.8% decrease in real GDP year-on-year, primarily driven by a 37.2% drop in oil activities. Conversely, non-oil activities continued to grow by 2.2%, accounting for 90.1% of GDP, with growth recorded in sectors such as finance and insurance, manufacturing, public administration, and construction. Additionally, foreign direct investment increased by 2.6%, reaching 17.6 billion Bahraini dinars. Bahrain also advanced in global competitiveness and development indicators, including leading worldwide in public-private partnerships, Islamic finance governance, attracting investments, and advancements in information and communications technology.
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