Non-Oil Boost Despite Oil Slump
Bahrain’s real Gross Domestic Product (GDP) experienced a year-on-year growth of 2.1 per cent in the third quarter of 2024, reaching BD3,734 million at constant prices and BD4,342 million at current prices, according to preliminary data released by the Information & eGovernment Authority. This was announced by the Finance and National Economy Ministry in its publication of Bahrain’s Economic Quarterly Report for Q3 2024, which is now available on its official website, www.mofne.gov.bh.
This economic growth was primarily fuelled by a 3.9pc increase in non-oil activities, while the oil sector saw an 8.1pc contraction. In nominal terms, the GDP declined by 0.9pc due to a significant 14.1pc drop in oil sector output, despite the 1.5pc rise in non-oil activities.

The report highlighted that non-oil activities contributed significantly to economic growth, accounting for 86.4pc of real GDP in Q3 2024. Leading the growth in the non-oil sector, the information and telecommunications technology sector achieved the highest growth rate of 11.9pc year-on-year. This was followed by business activities at 8.1pc, public administration at 5.9pc, financial and insurance activities at 5.8pc, and manufacturing at 4.2pc. Additionally, the wholesale and retail trade sector grew by 2.1pc, while the construction sector recorded slight growth of 0.4pc.
Foreign direct investment into Bahrain also saw a positive trend, with the total value rising by 3.5pc year-on-year in Q3 2024, bringing the cumulative stock to BD16.5 billion.

Bahrain’s strong performance in global competitiveness indices was also noted in the report. The kingdom maintained its position as the freest economy in the Arab world, as ranked in the Economic Freedom of the World Report 2024 by the Fraser Institute. Bahrain also retained its first-place position in the GCC in the 2024 Basel AML Index for combating money laundering and terrorism financing. Additionally, Bahrain advanced eight spots to rank 30th globally in the 2024 IMD World Digital Competitiveness Ranking.
This comprehensive report underscores Bahrain’s sustained economic growth through diversification and innovation, highlighting the resilience and dynamism of its non-oil sectors. The Finance and National Economy Ministry continues to focus on policies that support sustainable economic development and enhance the overall economic landscape of the kingdom.