In 2008, the Kingdom of Bahrain preceded all the Gulf countries to launch their future vision 2030 in order to restore their economic glory, which was ignited in the 1970s and 1980s. However, the geopolitical tensions surrounding the small kingdom prevented this after the loss of oil prices two-thirds of its value to form a scene that signals economic risks Underscoring the strength of the Gulf Cooperation Council (GCC) ...
1. The Kingdom's gross domestic product (GDP) in 2017 was about 31.13 billion dollars, with an annual per capita estimated at 22.4 thousand dollars, with the kingdom enjoying an estimated oil reserve of 0.12 billion barrels and huge natural gas reserves of 92,000 billion cubic feet. .
2 - The volume of the foreign trade of the Kingdom of Bahrain in 2017 amounted to about 27.5 billion dollars, and its exports amounted to about 12.5 billion dollars and their returns about 14.7 billion dollars ...
3 - The Bahraini dinar exchange rate is about 0.376 dinars per dollar, which is the level threatened by the decline after the loss of about 75% of the reserves of the Central Bank of Bahrain since the deterioration of oil prices in 2014 to total reserves by the end of 2017 about 1.4 billion dollars ...
4. Since the launch of the Kingdom of Bahrain for its future vision in 2008, there has been a significant increase in the level of debt from $ 1.6 billion to nearly $ 24 billion by the end of 2017. Both government debt is 82% and the total financial deficit is close to 18% of GDP Total ... with significant pressure to lower bank deposits ...
5 - The above cast a shadow over the expectations of credit ratings for Bahrain's long-term sovereign debt from BB to B + ... The IMF also expected to record a significant deficit in 2018 of about 11.9% of GDP ... Waiting for Bahrain level $ 100 per barrel to balance its annual budget ...
Despite this vapid scene, the government efforts of the Kingdom of Bahrain continue to emerge from the economic crisis through the prospect of several solutions, the most important of which are:
1. The Government of Bahrain has requested financial assistance from the GCC countries, especially from the three tranches of Saudi Arabia, the UAE and Kuwait, to restore the composition of a cash reserve facing the growth of the debt level and maintain the stability of the national currency until the recovery of the expected energy prices ...
2 - the imposition of taxes on the gradual price of gasoline, tobacco and gas drinks ... and the readiness to impose value-added tax in the second half of 2018 ... and face the weak demand for real estate with new features and facilities guaranteed by the Real Estate Regulatory Authority to obtain new licenses by the end August
3 - Intensifying the efforts of the Economic Development Board in seeking to form the nucleus of the sovereign fund of the country and the launch of more competitive freedoms where deregulation and restrictions on exchange and transfer of profits and transfer of funds and encourage the private sector, which includes about 60% of the citizens of the Kingdom ... In addition to To ease customs barriers and to establish a new financial legislative system that addresses corruption and economic leakage and stimulates direct investment especially for international financial technology institutions, which started with Amazon, the largest data center in the Middle East, currently hosted by Bahrain.
4 - The Economic Development Board also worked to activate the Bahrain Stock Exchange, which suffers from a shortage of listings through the issuance of the market maker's guide and the launch of a liquidity fund of about $ 100 million ... The launch of the Bahrain Investment Market for small companies with a capital of 250 thousand dinars, With a growth of about 70% from 2016 to reach 211 million dinars annually.
5 - The tourism sector in Bahrain represents about 15% of the revenues of the Bahraini economy and the State hopes to raise the ratio to about 25% by diversifying tourist destinations in the face of a new competitive challenge and is the opening of the entertainment facility in the Kingdom of Saudi Arabia ...
Finally, the growth of the negative indicators of the Bahraini economy foreshadows a repeat of the Greek model in the Gulf unless the GCC support countries put in place a rescue plan which includes the following:
1 - Help to slow the economic decline of Bahrain by providing packages of financial assistance proactively and supporting the banking activity, which has a good history and flexible relationships and distinct infrastructure ...
2- The active contribution in combating corruption and economic leakage under the umbrella of the Gulf Cooperation Council ...
3 - To work more on the exchange of benefits by optimizing the utilization of resources and taking advantage of the benefits of economic freedoms enjoyed by Bahrain and allow more active and more active private sector ...
4 - The launch of a vision of a future Gulf unified and integrated for the year 2030 over the next ten years strengthened in the direction of the unique economic visions of all GCC countries ...
