Bahrain has made remarkable progress through the successful rollout of key national projects across four strategic sectors – energy, industry, transport and logistics, and tourism.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa highlighted the country’s strides during a Press conference at Gudaibiya Palace that was also attended by eight other ministers.

Shaikh Salman said diversification continues and remains on track under the Fiscal Balance Programme launched in 2018.

He noted that four of the programme’s six core targets have already been achieved, including reducing government operational expenditure, improving spending efficiency, streamlining procedures, increasing non-oil revenues and introducing an optional retirement scheme for eligible public sector employees.

Further progress followed the updated programme in 2021, introduced in response to the economic impact of Covid-19 and lower oil prices.

Of the eight initiatives under the updated scheme, six have been completed, including higher contributions from government-owned companies, further reductions in operational spending, revenue development measures, improved capital project efficiency, raising Value Added Tax (VAT) to 10pc and tighter control of workforce-related expenditure.

As a result, recurrent expenditure was reduced by 12pc between 2014 and 2024, while non-oil revenues surged by 147pc, rising from BD489 million in 2018 to BD1.2bn in 2024.

“These are clear indicators that fiscal reforms are working,” Shaikh Salman said.

He stressed that diversification has been underpinned by a robust legislative framework, with more than 2,400 laws and decrees issued to modernise regulation and align it with economic and social developments.

In the energy sector, Shaikh Salman cited the modernisation of the Bapco refinery, one of the largest refining projects in the region, which has strengthened Bahrain’s competitiveness and enhanced its ability to meet regional and global demand for refined products.

He also highlighted the completion of the new oil pipeline linking Bahrain and Saudi Arabia, improving supply efficiency and safety, and the inauguration of the Bahrain LNG Terminal, a vital piece of infrastructure supporting cleaner energy needs and securing gas supplies for power generation and industry.

In addition, the second phase of the Al Dur 2 power and water station has been completed, reinforcing energy and water security.

Turning to industry, Shaikh Salman said the launch of Aluminium Bahrain’s sixth smelter line marked a major milestone, positioning Alba as one of the world’s largest aluminium smelters.

He also pointed to the expansion of downstream aluminium industries, the opening of Salman Industrial City, and the establishment of the US Free Trade Zone, all of which are designed to boost value-added manufacturing, attract foreign investment and strengthen bilateral trade with the US.

In the logistics sector, Shaikh Salman highlighted the comprehensive upgrade of Bahrain International Airport, the creation of the Express Air Cargo Village, the operation of Khalifa Bin Salman Port, and the development of the Bahrain Logistics Zone, which together reinforce the kingdom’s role as a regional hub for trade, transport and supply chains.

Shaikh Salman said the tourism sector has emerged as a key pillar of diversification, driven by landmark projects that have elevated Bahrain’s regional and international profile.

The opening of the Exhibition World Bahrain has positioned the kingdom as a hub for major conferences and exhibitions, significantly boosting business tourism.

He also cited continued investment in the Bahrain International Circuit, which remains a global venue for top-tier sporting events, strengthening sports tourism.

“Our objective is clear,” he said.

“We want to build a resilient, diversified economy that delivers tangible benefits to citizens today, while securing prosperity for future generations.”

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