Bahrain: Non-oil activities grew by 2.2% in the first quarter

The Bahraini Ministry of Finance and National Economy stated 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 noted 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 year-on-year, driven by a 37.2 percent drop in oil sector activities due to restrictions on maritime navigation through the Strait of Hormuz, which impacted export capacity, alongside scheduled maintenance work.

The report indicated that GDP at current prices fell by 2.7 percent, resulting from a 31.1 percent decline in oil sector activities, offset by a 1.9 percent year-on-year growth in non-oil activities. The Ministry pointed out 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 registering positive growth. It further noted that contributions from other non-oil activities ranged between approximately 2 percent and 5 percent, reflecting the Kingdom’s economic diversification. The report also highlighted that the balance of foreign direct investment grew by 2.6 percent year-on-year by the end of the first quarter of 2026.