Reduced global oil prices are still impacting economic growth in Bahrain, even as the Gulf state continues to diversify its economy. However, an influx of money from the country’s neighbours, in the form of long-term, interest-free loans – not to mention a fiscal reform policy put in place by the government in 2018 – has helped Bahrain and its banking sector continue to show forward momentum.
“Two-thousand and nineteen was a bit of a year of consolidation. It wasn’t outstanding, but I would say it was cautiously positive,” says Jean-Christophe Durand, CEO of National Bank of Bahrain (NBB). “I think a very important factor has been the implementation of the fiscal reforms, which has given clarity. Confidence of investors has been boosted. Also, the fact that all the large projects we’ve been talking about for the past two or three years are under way is a positive element.”
