Foreign direct investments in Bahrain rose by 9.7 per cent in 2022 to $1.951 billion despite a global drop by 12.1pc in foreign investments, said Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa.

However, he stressed that the effect of the pandemic as well as geopolitical and international inflation will continue to have a long-term effect as global economic growth will drop from 3pc last year to 2.9pc this year with it standing at 3.5pc in 2022.

“We have worked out 27 programmes through our Economic Recovery Plan announced in October 2021 and we are continuing to work on them despite international challenges and changes that Bahrain is not insulated from.”

Shaikh Salman was responding to a question by Parliament second deputy speaker Ahmed Qarata on ways to tackle inflation, during Parliament’s weekly session yesterday

In another response to a question by Strategic Thinking Bloc president Ahmed Al Salloom, the minister said of the 27 projects earmarked under the Economic Recovery Plan, 22 have been completed.

The MP also called for a review of the fees of services provided by the government to companies to ensure that small traders do not leave the market.

He urged the government to give the issue attention as some fees imposed on small and micro companies have proved burdensome.

“It is unfair to have the same fees for micro-sized companies and large companies,” he said.

“Therefore, there is an urgent need to review the fees to ensure they are more fair and in line with the economic situation.

“For example, the government initiative enhancing the efficiency and fairness of direct government support to those who deserve is one of the most important initiatives in the hands of the joint committee between the two authorities to redirect social welfare and subsidies’ support.

“But at the same time, we notice that there is a state of dissatisfaction in the Bahraini street due to the slow work of the committee and there is a need to accelerate its work.”

Mr Al Salloom also renewed calls proposed to introduce a living improvement allowance for private sector employees, similar to the allowance that government employees receive.

“In general, the Economic Recovery Plan is seeing great success, but more than two-and-a-half years after the end of the Covid-19 pandemic we need to review strategies and programmes and launch new plans that are in line with global economic changes.”

The MP pointed out that some of the strategies under the Economic Recovery Plan, such as tourism, do not have performance indicators.

“This strategy is very important and it has clear and specific goals such as increasing the average tourist nights, increasing the average visitor spending per night and increasing the number of visitors coming to the kingdom,” he said.

 

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