Saudi FDI into Bahrain hits $9.8bn; finance gets lion's share
RIYADH, October 26, 2022
The foreign direct investment (FDI) stock coming from Saudi investments stands at $9.8 billion, making up around 29% of the total inward FDI stock in Bahrain, which has reached $33.5 billion in 2021, said a senior official of Bahrain Economic Development Board (Bahrain EDB) at a key event in Riyadh.
These investments come from a number of sectors including financial services, ICT, manufacturing, and logistics and of these the financial services sector walked away with the lion's share (68%), followed by the industrial sector (19%), stated Ali Al Mudaifa, the Chief Business Development Officer at the Bahrain EDB.
Al Mudaifa was speaking on the Bahrain-Saudi relations at the ongoing Future Investment Initiative (FII) event in the Saudi capital.
These investments, attracted by Bahrain EDB and its partners, came as a result of the strong economic relations between Bahrain and Saudi Arabia, as well as the support from the leadership in both countries, he noted.
Al Mudaifa pointed out that Bahrain EDB had witnessed strong interest from Saudi investors in Bahrain's business friendly environment, which encompasses its best-value operating costs, skilled workforce, forward-looking regulations, and advanced infrastructure that connects both kingdoms.
The Bahrain EDB official was upbeat on the future Saudi investments inflow.
"We believe there will be more FDI inflow from Saudi in the near future in light of the increased economic cooperation between both countries, in addition to the launch of the Bahraini Economic Recovery Plan, which targets investment of more than $30 billion in strategic infrastructure projects and other priority sectors," said Al Mudaifa.
Overall, Bahrain EDB attracted $921 million in direct investment from 66 companies during the first nine months of 2022, he stated.
These investments are expected to generate more than 4,700 jobs over the next three years in key sectors, including financial services, ICT, logistics, manufacturing, and tourism, he added.-TradeArabia News Service
