A New Strategic Economic Plan for Bahrain

A New Strategic Economic Plan for Bahrain

While the oil industry is rapidly declining, many oil monarchies that are still heavily depending on oil have accelerated their diversification strategies. This is the case for all Gulf countries, including the Kingdom of Bahrain. Last week, the island state launched a large-scale strategic economic plan to invest no less than 30 billion USD in 20 innovative projects, including five new offshore cities, according to a report by Arab News.

As part of this ambitious strategic plan, several infrastructure projects will emerge. Bahrain has notably planned the construction of a new causeway to connect the island to Saudi Arabia as well as the completion of a metro project, a first for the country.

Beyond the importance of economic diversification, this strategic plan will allow Bahrain to return to economic growth after several years of economic downturn and help boost the creation of new jobs.

However, the oil industry remains important for the kingdom, which has announced that it will increase its refinery capacities from 267,000 to 380,000 barrels a day through the Bapco Modernization Program, considered one of the largest industrial projects in Bahrain's history, which will enable the kingdom to improve its energy efficiency as well as its ability to meet international environmental standards.