Latest news with #GoldenLicence
Zawya
07-04-2025
- Business
- Zawya
Bahrain's real estate sector ‘exhibits resilience in 2024'
Bahrain's real estate sector demonstrated resilience in 2024, navigating a slight contraction in transaction activity while maintaining overall stability, according to a new report by ASK Real Estate. The report highlights that transaction volumes in 2024 decreased by 4.82 per cent compared to the previous year, with 24,863 transactions recorded. However, the total transaction value experienced only a marginal reduction of 1.64pc, amounting to BD1.06 billion. This indicates a market trend leaning towards higher-value properties, suggesting continued interest in premium assets despite the dip in transaction numbers. Land, residential, commercial, and industrial property rates remained stable throughout 2024. This stability is seen as a positive sign, reassuring investors and developers of the market's steadiness. The hospitality sector continued its positive trend, with hotel occupancy rates rising from 52.88pc in 2023 to 54.85pc in 2024, a 1.97pc increase. The Average Daily Rate (ADR) also improved by 3.76pc, reaching BD63.80, and Revenue Per Available Room (RevPAR) increased significantly by 8.36pc, to BD37.07. These figures reflect Bahrain's growing attractiveness as a tourism destination. Karim Yazji, chief executive of ASK Real Estate, emphasised that the market's resilience reflects strong investor confidence. 'The real estate sector's consistency and reliability highlight the abundance of investment opportunities available. The government has played a pivotal role in driving sectoral growth by enhancing transparency and providing accessible, data-driven insights to stakeholders.' Mr Yazji added, 'The encouraging indicators outlined in the report reinforce the sector's contribution to national economic development, while strengthening Bahrain's position as a premier investment destination in the region. Between 2021 and 2024, we've seen exceptional growth grounded in sound fundamentals.' The report provides a broader economic context, noting that global economic growth remained moderate in 2024, around 3.2pc, and was hampered by factors like persistent inflation and tighter monetary policy in the first half of the year. In contrast, GCC economies demonstrated robust growth in 2024, driven by high oil prices and diversification efforts. Bahrain's economic highlights in 2024 include advancing to 21st globally in the IMD World Competitiveness Ranking, attracting $2.4 billion in investments through the Golden Licence initiative, and significant investments by the Abu Dhabi Fund for Development. The report delves into specific sectors, noting the stabilisation and adjustments in retail, office rentals, industrial spaces, and residential properties. Off-plan sales remain attractive, particularly to foreign and GCC national buyers. It also emphasises the growing importance of sustainability in the kingdom's real estate sector, outlining the benefits and opportunities for adopting green building practices. Looking ahead to 2025, the GCC economies, including Bahrain, are poised for continued growth, driven by diversification efforts and adjustments in oil production. avinash@
Zawya
19-03-2025
- Business
- Zawya
Bahrain economy projected to hit 2.8% GDP growth in 2025
Bahrain's economy is projected to gather pace, reaching 2.8 per cent GDP growth in 2025, even with global economic headwinds, according to the latest Institute of Chartered Accountants in England and Wales (ICAEW) Economic Insight report, prepared by Oxford Economics. This positive outlook aligns with the broader GCC resilience, which is forecast to experience 4pc growth, up from an estimated 1.8pc in 2024. According to ICAEW economic adviser and Oxford Economics Middle East chief economist and managing director Scott Livermore, the GCC's projected 4pc growth in 2025 highlights the region's ability to withstand external pressures while advancing its diversification efforts. On Bahrain, the report highlights the kingdom's successful diversification efforts, with the non-oil sector contributing 86pc to overall GDP in 2024, demonstrating the country's progress in moving away from oil dependency. Notably, non-oil GDP growth is anticipated to reach 3.1pc in 2025, driven by strong performances in sectors like accommodation and food services, financial activities, and insurance. The island nation's strategic initiatives, such as the Gateway Gulf event, which secured $12 billion in deals across key sectors, underscore its commitment to diversification. Ongoing projects, including a $427 million waterfront development and the $221m Exhibition World Bahrain convention centre, operating since November 2022, are set to bolster tourism, a vital growth engine. To attract foreign direct investment (FDI), Bahrain is establishing new industrial free zones in Muharraq, near Bahrain International Airport, targeting the foodstuffs, pharmaceuticals, and garments industries. Initiatives like the Golden Licence, introduced in 2023, have already proven effective in attracting FDI into financial services, manufacturing, and technology. While oil GDP contracted by 2.4pc in 2024, the report forecasts a 0.9pc growth in 2025, driven by the $6 billion Bapco Modernisation Programme, which aims to increase refining capacity to 400,000 barrels per day by end-2025. Bapco Energies' successful $500m funding for the Bahrain Field Expansion and Development Programme further reinforces this positive outlook. However, the report also notes that lower oil prices, forecasted to average $70.5 per barrel in 2025, may constrain the sector's fiscal impact, given the kingdom's higher breakeven price. The GCC region's non-energy sectors are projected to grow by 4.4pc this year, up from an estimated 3.9pc in 2024, with regional PMI data firmly in expansionary territory. Following recent Opec+ policy shifts, oil production will gradually increase from April, boosting oil-sector growth to 3.2pc. 'Despite softer oil prices, the gradual easing of Opec+ production cuts will support energy sector growth after two years of contraction,' explained Mr Livermore. Inflation in Bahrain is projected to rise to 2.8pc in 2025, potentially impacting consumer spending. The fiscal balance is expected to remain in deficit, with debt levels exceeding 100pc of GDP. However, initiatives like the 15pc domestic top-up tax for multinational enterprises and a multi-year fiscal consolidation plan aim to enhance economic sustainability. The report also acknowledges the potential impact of US trade policies, particularly under President Trump. While the US-Bahrain Free Trade Agreement could strengthen economic ties, potential tariff shifts could introduce uncertainties, even as the GCC remains largely sheltered from direct tariff impacts. The kingdom's workforce is set to expand, driven by rising migration trends and updated UN population projections. This growth will be crucial for enhancing productivity and furthering diversification efforts across core sectors. Commenting on the regional outlook, ICAEW head of Middle East Hanadi Khalife said: 'The business landscape across the GCC continues to demonstrate resilience and adaptability in the face of global economic uncertainty. We're seeing strong investment in key sectors like tourism and infrastructure, which are creating new opportunities for growth.' avinash@
