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Bahrain Draws Record FDI Inflow in 2023

General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
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Bahrain Draws Record FDI Inflow in 2023

General view of capital Manama, Bahrain, October 30, 2022. (Reuters)
General view of capital Manama, Bahrain, October 30, 2022. (Reuters)

Bahrain saw a surge in foreign direct investment (FDI) to a record $6.8 billion in 2023, up 148% from the previous year's figures, according to the latest World Investment Report (WIR 2024) by the United Nations Conference of Trade and Development (UNCTAD).

This boost contributed to Bahrain’s FDI reaching $43.1 billion, up from $36.2 billion in 2022.

Marking one of the highest ratios in the world, Bahrain’s FDI stocks relative to GDP stood at 99.7% as of the end of 2023, a figure significantly higher than the global average of 46.9%.

According to Bahrain’s Information & eGovernment Authority, the top countries contributing to Bahrain’s FDI stocks as part of a diverse portfolio include Kuwait (36%), Saudi Arabia (23%) and the UAE (10%).

Noor bint Ali Alkhulaif, Minister of Sustainable Development and Chief Executive of Bahrain Economic Development Board (Bahrain EDB), said: “The milestone FDI inflows attracted in 2023 reflects the strength of Bahrain’s value proposition and continued standing as a trusted destination of choice for regional and global investors seeking best value operating costs in a strategic location that serves as an ideal gateway to the region and beyond.”

Bahrain continues to cement its reputation as an attractive hub for investments, where the government continues to prioritize the ongoing development of forward-looking regulatory frameworks alongside the implementation of strategic economic plans to encourage economic growth and diversification, said an EDB statement.

Bahrain’s nominal GDP increased from around $11 billion in 2003 to over $43 billion in 2023, marking an average annual growth of 7%, surpassing the global average of 5%.

In addition to securing healthy economic growth, Bahrain’s economy also diversified, the financial services sector overtook the oil sector as the highest contributor to real GDP, standing at 17.8% in 2023, marking a milestone achievement.

Alkhulaif added: “Backed by an agile government, highly skilled bi-lingual talent pool, and financially liberal environment, Bahrain has proven itself as a leading investment destination enabling leading companies to benefit from a business-friendly environment.”

“At Bahrain EDB, we continue to tactically work towards attracting increased investments from priority markets, supported by Team Bahrain, in the interest of sustaining economic growth and diversification.”

Attracting a total of $2.4 billion in investments from nine major projects and set to generate 3,000 job opportunities, the Golden License has been a pivotal initiative launched in Bahrain in April 2023, which has successfully encouraged increased regional and international investments.

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Aramco Signs Over $25 Billion of Deals for Main Gas Network, Jafurah Gas Field

This picture shows Aramco tower (C) at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (AFP via Getty Images)
This picture shows Aramco tower (C) at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (AFP via Getty Images)
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Aramco Signs Over $25 Billion of Deals for Main Gas Network, Jafurah Gas Field

This picture shows Aramco tower (C) at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (AFP via Getty Images)
This picture shows Aramco tower (C) at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (AFP via Getty Images)

Saudi Arabia's state oil company Aramco has signed contracts worth more than $25 billion for the second phase of the expansion of its Jafurah gas field and the third phase of expanding its main gas network, its CEO Amin Nasser said on Sunday.

Jafurah is the kingdom's largest unconventional non-oil associated gas field and is potentially the biggest shale gas development outside the United States, with reserves reaching 229 trillion cubic feet of gas and 75 billion barrels of condensates.

"By generating an anticipated 2 billion standard cubic feet per day of sales gas by 2030, this bold initiative will strengthen Saudi Arabia's position as one of the top national gas producers in the world", said Nasser, speaking of the Jafurah field at a contracts award ceremony in Dhahran.

The main gas network expansion will add 4,000 more kilometers of pipelines, boosting capacity by around 3.2 billion standard cubic feet per day and connecting several additional cities from across the country to the network, he said.

The awarded contracts are worth more than $25 billion, and will target sales gas production growth of more than 60% by 2030, compared to 2021 levels.

The contract awards "demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries. The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand," Nasser noted.

"This complements the diversification of our portfolio, creates new employment opportunities, and supports the Kingdom’s transition towards a lower-emission power grid, in which gas and renewables gradually displace liquids-based power generation. To get where we are today, a lot of hard work, innovation and a strong ‘can do’ spirit has been demonstrated by teams across our vast network of suppliers and service providers, who have joined Aramco on this journey to build and expand our world-class energy infrastructure,” he added.

According to Aramco, the Company has awarded 16 contracts, worth a combined total of around $12.4 billion, for phase two development at Jafurah. The work will involve construction of gas compression facilities and associated pipelines, expansion of the Jafurah Gas Plant including construction of gas processing trains, and utilities, sulfur and export facilities. It will also involve construction of the Company’s new Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail — including NGL fractionation trains, and utilities, storage and export facilities — to process NGL received from Jafurah.

Another 15 lump sum turnkey contracts, worth a combined total of around $8.8 billion, have been awarded to commence the phase three expansion of the Master Gas System, which delivers natural gas to customers across the Kingdom of Saudi Arabia. The expansion, being conducted in collaboration with the Ministry of Energy, will increase the size of the network and raise its total capacity by an additional 3.15 billion standard cubic feet per day (bscfd) by 2028, through the installation of around 4,000km of pipelines and 17 new gas compression trains.

An additional 23 gas rig contracts worth $2.4bn have also been awarded, along with two directional drilling contracts worth $612 million. Meanwhile, 13 well tie-in contracts at Jafurah, worth a total of $1.63bn, have been awarded between December 2022 and May 2024.