The Information & eGovernment Authority (iGA) released the initial Foreign Investment Survey results for the second quarter of 2019, conducted in collaboration with the Central Bank of Bahrain and the Economic Development Board. The survey measures the volume of foreign investments made by key entities in various economic sectors in order to provide updated statistical data of the volume and flows of these investments; in an initiative that aims to assist decision-makers set appropriate policies, which in turn will attract more investments to contribute in advancing the growth wheel across the Kingdom.
Initial statistics indicated total inflows of foreign direct investment (FDI) of BD99 million during the second quarter of 2019, increasing the total volume as at the end of the second quarter by 1% in comparison with the previous quarter; with the total value of FDI reaching BD10.9 billion as at the end of the second quarter. The growth reflects the Kingdom’s ongoing efforts in attracting more foreign investments and an increase in the capital flows.
The financial and insurance activities and information and communication were the top two industries in terms of the volume of the FDI flow to Bahrain during the second quarter. The flow of financial and insurance activities FDI increased in the second quarter by 1.2% from BD7,869 million, as at the end of the first quarter of 2019, to BD7,963 million. On the other hand, the flow of information and communication FDI increased by 1% from BD338.9 million to BD342 million, over the same period.
FDI flows from Kuwait came on top, in absolute terms, with an additional BD45.2 million flowing into the Kingdom during the second quarter, increasing Kuwait’s FDI inflows by 1.3%, from BD3,525 million, as at the end of the first quarter of 2019, to BD3,570 million as at the end of the second quarter. India came in second place with total inflows of BD21.8 million during the second quarter, increasing their total investment from BD411.3 to BD433.2 during the same period, followed by the Kingdom of Saudi Arabia in third position with inflows of approximately BD20.5 million during the second quarter, an increase of 0.8% from BD2,469 million to BD2,490 million.
The survey was conducted to determine the Kingdom’s foreign investment sources according to the country of residence of investors; as well as to determine the attractive sectors for investments in the Kingdom, which gives an indication of the sectors that require further development. The survey comprises active entities in all economic activities and considers the volume of capital, ownership and employment.
It is worth noting that the Foreign Investment Survey is considered one of the most important economic surveys conducted by the Authority on a regular basis in an aim to learn about the balances and flows of the foreign investments in the Kingdom of Bahrain. The survey is conducted by the Authority – represented by the Economic Statistical Directorate – in compliance with international standards and in line with the unified GCC work plan supervised by the GCC Stat Center to collect foreign investment statistics.