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Bahrain Welcomes Regional, Global Investments

Locals wear face masks as a precaution against the coronavirus, in Manama. (Reuters file photo)
Locals wear face masks as a precaution against the coronavirus, in Manama. (Reuters file photo)
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Bahrain Welcomes Regional, Global Investments

Locals wear face masks as a precaution against the coronavirus, in Manama. (Reuters file photo)
Locals wear face masks as a precaution against the coronavirus, in Manama. (Reuters file photo)

Bahrain’s Minister of Industry, Commerce and Tourism Zayed bin Rashid al-Zayani welcomed all global and regional investments in his country.

Zayani met Sunday with the CEO and Managing Director of El-Sewedy Electric, Ahmed el-Suwaidi, in the presence of Egypt's ambassador to Bahrain Yasser Shaaban, and a number of company officials.

Zayani said that the government welcomes all businessmen and regional and global investments aimed at establishing various projects in Bahrain that would improve the national economy and enhance the role and image of the Kingdom as a trade and investment hub.

He pointed out that his country possesses a suitable investment environment, especially in light of the great facilities provided by the government to all national and foreign investors.

During the meeting, Zayani reviewed the bilateral relations between Bahrain and Egypt and the means to enhance cooperation in the economic, industrial and tourism fields. They also discussed all issues of common concern.

Bahrain’s economy contracted by 8.9 percent year on year in the second quarter as the state suffered from restrictions to contain the coronavirus.

Hotel and restaurant activity declined by 61.3 percent compared to the same period a year earlier.

“This is mainly due to the widespread restrictions imposed on tourists, hotels and restaurants and other related economic activities in the country due to the COVID-19 pandemic,” the government said in a statement.

Bahrain’s oil sector is expected to grow 3.2 percent, while the non-oil sector declined 11.5 percent.

S&P Global Ratings said Bahrain’s real GDP could contract by 5 percent this year, due to the pandemic and the impact of lower oil prices on consumption and investment activities.

However, the agency did not expect its oil and gas sector to decline because Bahrain is a small producer and is not subject to OPEC production cuts.

Bahrain was bailed out in 2018 with a $10 billion aid package from Gulf neighbors to avoid a credit crunch.

The International Monetary Fund (IMF) expects Bahrain’s fiscal deficit to jump to 15.7 percent of the gdp this year from 10.6 percent in 2019.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.