Bahrain: Non-oil activities grow by 2.2% in the first quarter of 2026
Manama, Aug 26 (KUNA) -- The Bahraini Ministry of Finance and National Economy said on Wednesday that non-oil activities in the Kingdom of Bahrain recorded growth of 2.2 percent at constant prices during the first quarter of 2026, amid a strong performance of the national economy in January and February of last year.
The ministry stated in its quarterly economic report for the first quarter of 2026 that economic performance was affected in March by Iran’s despicable attacks on the Kingdom. It added that gross domestic product (GDP) at constant prices declined by 3.8 percent on an annual basis, impacted by a 37.2 percent drop in oil activities due to restrictions on maritime navigation through the Strait of Hormuz, which affected export capacity, alongside scheduled maintenance works.
The report indicated that GDP at current prices fell by 2.7 percent, driven by a 31.1 percent decline in oil activities, contrasted with a 1.9 percent annual growth in non-oil activities.
It noted that non-oil activities accounted for 90.1 percent of GDP at constant prices during the first quarter of 2026, with nine out of 13 non-oil activities recording positive growth.
Financial and insurance activities, which are the largest contributors to GDP, achieved the highest annual growth rate among non-oil activities at 8.6 percent, contributing 19.7 percent to GDP. This was followed by manufacturing, which contributed 14.6 percent, then public administration at 9 percent, and construction at 7 percent.
The ministry added that the contribution of other non-oil activities ranged between approximately 2 percent and 5 percent, reflecting the Kingdom’s economic diversification.
The report noted that the balance of foreign direct investment grew by 2.6 percent on an annual basis by the end of the first quarter of 2026.
The ministry highlighted that the Kingdom of Bahrain continued to make significant progress in several international economic and development indicators, reflecting the success of its efforts in economic diversification and ongoing development of the business environment. The Kingdom ranked first globally in 67 indicators, placed within the top five globally in 120 indicators, and within the top 10 globally in 206 indicators.
Regarding competitiveness, the Kingdom achieved the first global ranking in public-private partnerships according to the 2026 Global Competitiveness Report issued by the International Institute for Management Development (IMD).
Bahrain also ranked first globally in Islamic finance governance, according to the 2025/2026 Global Islamic Economy Report issued by Dinan Standard. It secured the first global ranking in attracting investments, according to the 2026 Chandler Index of Good Governments issued by the Chandler Group for Governance.
The Kingdom of Bahrain advanced three positions in the 2026 Information and Communication Technology Development Index issued by the International Telecommunication Union (ITU), to rank sixth globally out of 159 countries.
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