Openness Faces New Tests

For decades, Bahrain has relied on economic openness to attract foreign investment, transfer technology and create jobs. By the end of March 2026, the stock of foreign direct investment had reached 17.6 billion dinars, up 2.6% year on year. However, investment is concentrated in financial and insurance activities, which account for 65.2%, while three Gulf countries account for 67.5% of its source. This highlights the need to diversify both sectors and sources, amid regional tensions and disruptions to shipping and supply chains that have made investment security and business continuity essential considerations. The article calls for targeting areas such as artificial intelligence, financial technology, clean energy and advanced industries. It also urges measuring success by investments actually realised, jobs created, exports and technology transfer, while strengthening contingency plans and ensuring regulatory stability to attract investors and safeguard their confidence.

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