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Bahrain Records Improvement in Economic Sector Indicators

Bahrain’s capital Manama (Asharq Al-Awsat)
Bahrain’s capital Manama (Asharq Al-Awsat)
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Bahrain Records Improvement in Economic Sector Indicators

Bahrain’s capital Manama (Asharq Al-Awsat)
Bahrain’s capital Manama (Asharq Al-Awsat)

Bahrain’s Ministry of Finance and National Economy has announced continued improvement in the financial and economic indicators of various economic sectors during Q1 2022, exceeding the pre-pandemic 2019 benchmarks.

This improvement comes in line with the Kingdom’s launching of its economic recovery plan, which includes initiatives and strategies targeting several promising sectors to serve citizens.

In the tourism and hospitality sector, the average occupancy rate in four and five-stars hotels was 55%, while the number of mall visitors increased by 26.9% compared with the same quarter in 2021.

Another sign of the turnaround is the 35.4% increase in new commercial licenses in 2022 and so did the value of sales using Bahrain ATM cards, which increased by 4.2%.

Remarkable growth was achieved in February in the financial services sector as Fawri+ transactions grew by 55.1% and Fawri transactions increased by 22.1%.

In terms of international trade, the total value of exports amounted to 64.7%, and the total fuel sales increased by 12.2%.

Similarly, total non-bank deposits grew by 12.7% and the Bahrain Bourse index witnessed a 33.3% increase.

In the real estate sector, transactions registered with the Survey and Land Registration Bureau increased by 19.6%, while the number of building permits increased by 15.8%.

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SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
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SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)

Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical companies, reported a net loss of 1.21 billion riyals ($322.6 million) for the first quarter of 2025, reflecting continued pressure on the global petrochemical sector.

Despite this, the company is maintaining disciplined capital investment management, with capital expenditure expected to range between $3.5 billion and $4 billion in 2025.

The loss was primarily attributed to a 1.05 billion riyal decline in gross profit, driven by rising feedstock prices, along with non-recurring costs of 1.07 billion riyals linked to a strategic restructuring initiative aimed at streamlining annual costs by approximately 345 million riyals and improving long-term operational efficiency.

SABIC CEO Abdulrahman Al-Fageeh, speaking at a press conference following the release of the company’s results, highlighted ongoing challenges in the global economy, including a slowdown in global GDP growth.

 

 

“The first quarter business environment was marked by uncertainty, with global economic growth at just 2.97%, along with a slowdown in the manufacturing PMI, which intensified challenges for the sector,” he said.

Despite the losses, Al-Fageeh noted SABIC's remarkable resilience, supported by what he described as “stable demand” for petrochemicals. He emphasized the company’s continued focus on operational excellence and its transformation efforts throughout the year.

SABIC projects its capital expenditure to range between $3.5 billion and $4 billion in 2025, reaffirming its commitment to creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision.

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, commented to Asharq Al-Awsat that initial forecasts from various research firms prior to the results announcement were mixed. While some expected a significant year-on-year drop in net profit, others predicted revenue growth.

“Looking at the reported results, we see that revenue aligned with expectations, indicating slight year-on-year growth, while the reported net loss was smaller than some estimates, which had anticipated larger losses,” Al-Farraj said.

“However, the results still fall short of profits from the same period last year. It is important to consider the impact of one-time restructuring costs when making comparisons,” he explained.