Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)

Housing loan installments will be postponed for six months starting in April, Bahrain’ government announced on Monday.

This decision is part of the measures taken by the government to reduce the effects of the coronavirus outbreak on the Kingdom’s economy and citizens.

Crown Prince Salman bin Hamad Al Khalifa, first deputy premier, took part in the cabinet session, which was chaired by Prime Minister Prince Khalifa bin Salman Al Khalifa and was held via videoconference.

In order to help stabilize the economy, the government announced in April a BHD4.3 billion ($11.4 billion) stimulus package to mitigate the economic impact of COVID-19 for both individuals and businesses.

It included key polices, such as paying salaries of all private sector employees for three months from April 2020 from the unemployment fund pursuant to constitutional procedures and Bahrain's Social Insurance Law.

It also pledged to pay the Electricity and Water Authority utility bills for individuals and businesses for three months from April.

The government exempted municipal fees for all individuals and businesses, industrial land rental fees for all businesses and tourism levies for all tourism-related industry for a period of three months from April 2020.

It decided to increases the size of the Liquidity Support Fund two-fold to BHD200 million ($530 million) and the Central Bank of Bahrain's loan facilities to BHD3.7 billion ($9.8 billion) to allow the deferment of debt installments and the extension of additional credit.

The Kingdom redirected all Tamkeen (the government agency responsible for the provisions of loans and assistance to businesses) programs to support adversely affected businesses and the restructuring of debts issued by Tamkeen.



Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s economy continued its upward trajectory in 2024, solidifying its status as one of the world’s most stable and fastest-growing markets. This momentum is being driven by the Kingdom’s unwavering commitment to economic diversification — a central pillar of Vision 2030 — which has significantly boosted non-oil sectors, expanded private sector participation, and increased the economy’s ability to generate jobs and attract investment.

Non-oil activities now contribute a record 51% to real GDP, marking a major milestone in the country’s transformation journey.

According to the Vision 2030 annual report, Saudi Arabia’s real non-oil GDP grew by 3.9% in 2024 compared to the previous year, fueled by ongoing investments across diverse sectors. Non-oil activities alone expanded by 4.3% year-on-year, reflecting the success of structural reforms and strategic national programs.

At the heart of Vision 2030 is the ambition to build a thriving economy. One of the key benchmarks is improving Saudi Arabia’s position in global GDP rankings. In 2016, the Kingdom ranked 20th worldwide. By 2030, it aims to break into the top 15, with a targeted GDP of SAR 6.5 trillion ($1.7 trillion).

In early 2024, Saudi Arabia adopted a new moving-chain methodology to measure GDP more accurately. Under this updated system, real GDP has grown consistently since 2016 at a compound annual rate of 1.75%, excluding the pandemic-induced downturn in 2020. Non-oil GDP, meanwhile, has shown even stronger performance, expanding at a 3.01% annual pace over the same period.

While the 2024 non-oil GDP target was narrowly missed, the outcome reached 98% of the goal — a strong showing amid global uncertainties. Leading contributors included wholesale and retail trade, hospitality, transportation, logistics, and information technology.

Non-oil exports also played a pivotal role in economic growth, achieving over 75% of their annual targets. Gains came primarily from increased exports of non-oil goods and a sharp rise in re-exports, underlining Saudi Arabia’s growing role in global trade flows.

The private sector’s role in the economy has expanded significantly, with its contribution to GDP reaching 47% — surpassing the 2024 target. Since 2016, this contribution has grown at a compound annual rate of 1.94%.

This progress reflects ongoing efforts to reduce reliance on oil, empower private enterprise, and enhance the Kingdom’s global competitiveness. Key initiatives include national strategies aimed at unlocking sectoral potential, the Public Investment Fund’s push to stimulate private capital, and the successful drive to attract global companies to relocate their regional headquarters to Saudi Arabia.

The government continues to foster a dynamic business environment, supporting small and medium enterprises (SMEs) through regulatory reforms and major development projects. These efforts span several sectors, including manufacturing, transport, logistics, and foreign investment.

Global Confidence, Positive Outlook

International confidence in the Saudi economy remains strong. In 2024, the world’s top three credit rating agencies affirmed the Kingdom’s sovereign creditworthiness. Moody’s assigned a rating of “Aa3” with a stable outlook; Fitch rated it “A+” with a stable outlook; and S&P awarded an “A/A-1” rating, also with a stable outlook.

Global institutions are also optimistic about the Kingdom’s growth prospects. The Organisation for Economic Co-operation and Development (OECD) forecasts Saudi economic growth at 3.8% in 2025 and 3.6% in 2026 — well above the global average.