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Bahrain’s Economy to Grow 2.7%

General view of Bahrain World Trade Center in Manama, Bahrain (File Photo: Reuters)
General view of Bahrain World Trade Center in Manama, Bahrain (File Photo: Reuters)
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Bahrain’s Economy to Grow 2.7%

General view of Bahrain World Trade Center in Manama, Bahrain (File Photo: Reuters)
General view of Bahrain World Trade Center in Manama, Bahrain (File Photo: Reuters)

Bahrain’s economy is expected to record a 2.7 percent growth in 2020 driven by an increase in the non-oil sector which is also expected to grow 3.1 percent, the Ministry of Finance and National Economy has announced.

The number of visitors to Bahrain will rise from 7 to 15 million by 2022.

Acting director of studies and research at the Bahrain Center for Strategic, International, and Energy Studies (Derasat) Omar al-Ubaydli expected 2020 to see gradual increase in oil prices.

Ubaydli noted that a rise in oil prices will reflect positively on all sectors. He also expected the tourism sector to continue to improve due to the effectiveness of the Kingdom’s strategic tourism plan, which contributed to attracting tourists from all over the world, and reduce the previous dependence on Gulf tourists.

President of the Bahrain Economists Society Ali al-Moulani expected the financial services sector to improve in 2020, attributing it to Bahrain’s regulatory environment designed to attract financial technology services.

Moulani explained that the financial sector attracted entrepreneurs and commercial banks, and encouraged investment banks to launch technology-based banks, taking advantage of Bahrain's technology-friendly environment.

He stated that mergers and acquisitions between financial institutions will continue in Bahrain, contributing to the growth of the financial sector in 2020 and  increasing the effectiveness and productivity of the merged banks.

Infrastructure projects are also expected to actively support economic growth in Bahrain. A number of projects worth over $6 billion out of a total of $32 billion had been completed.

Service projects in industry, energy, healthcare, and education sectors are expected to be established with a value of $7.5 billion. Industrial facilities in aluminum, oil, and gas sectors will be worth $10 billion, and private investment in real estate, tourism, and industry are worth $15 billion.

The kingdom is preparing to open a $1.1 billion expansion project for Bahrain International Airport, which will contribute to increasing the airport's capacity to 14 million passengers annually.

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Business

UN: Iran War Could Plunge 32 million into Poverty

People shop at the fruit and vegetable market the day after negotiations between Iran and the US in Pakistan failed to produce a deal, in the capital Tehran on April 13, 2026. (Photo by ATTA KENARE / AFP)
People shop at the fruit and vegetable market the day after negotiations between Iran and the US in Pakistan failed to produce a deal, in the capital Tehran on April 13, 2026. (Photo by ATTA KENARE / AFP)
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UN: Iran War Could Plunge 32 million into Poverty

People shop at the fruit and vegetable market the day after negotiations between Iran and the US in Pakistan failed to produce a deal, in the capital Tehran on April 13, 2026. (Photo by ATTA KENARE / AFP)
People shop at the fruit and vegetable market the day after negotiations between Iran and the US in Pakistan failed to produce a deal, in the capital Tehran on April 13, 2026. (Photo by ATTA KENARE / AFP)

More than 32 million people worldwide could be plunged into poverty by the economic fallout from the Iran war, with developing countries expected to be hit hardest, the United Nations Development Program (UNDP) warned.

In a report issued amid doubts over a fragile ceasefire, the UNDP said the world is facing a “triple shock” involving energy, food and weaker economic growth.

The agency said the conflict is reversing gains in international development, with the impact expected to be felt unevenly across regions.

Alexander De Croo, UNDP administrator and former prime minister of Belgium, said: “A conflict like this is development in reverse. Even if the war stops, and a ceasefire is very welcome, the impact is already there.”

“You will see an enduring impact, especially in poorer countries, where people are being pushed back into poverty. This is the most painful aspect. The people being pushed into poverty are very often the same people who were in poverty, escaped it, and are now being pushed back.”

Energy prices surged sharply during the six weeks of the Iran war after Iran’s closure of the Strait of Hormuz choked global oil and gas supplies. With knock-on effects on fertilizer supplies and global shipping, experts warn of a “time bomb” threatening food security in the developing world.

The head of the International Monetary Fund said the war’s “devastating effects” have caused lasting damage to the global economy, even if the conflict ends.

Publishing its report alongside meetings of world leaders in Washington for the IMF Spring Meetings, the UNDP said a global response is required to support countries hardest hit by the economic fallout.

It said targeted and temporary cash transfers are needed to protect the most vulnerable households in developing countries, at a cost of about $6 billion to mitigate the shocks for those living below the poverty line.

De Croo said international agencies and development banks could provide financial support. “There is a positive economic return from short-term cash transfers to avoid people being pushed back into poverty,” he said. Alternative measures could include temporary subsidies or vouchers for electricity or cooking gas.

Setting out three scenarios for the war, the UNDP found that in the worst case – involving six weeks of major disruption to oil and gas production and eight months of sustained higher costs – up to 32.5 million people globally would fall into poverty.

The report used the upper-middle-income poverty line defined by the World Bank, set at less than $8.30 per person per day.

The UNDP said that while richer countries are in a stronger position to cushion the economic fallout, countries in the global south face weaker conditions and already severe financial constraints.

This comes as western governments, including the US, Germany, France and the UK, cut aid spending amid rising borrowing and debt levels in advanced economies and calls to increase defense spending.

Data from the Organization for Economic Co-operation and Development published last week showed that countries in its Development Assistance Committee cut aid spending to $174.3 billion in 2025, nearly a quarter lower than in 2024.

Business

EU Member States Must Coordinate on Energy Prices amid Iran conflict, Von Der Leyen Says

Gas prices are displayed at a Chevron station in Los Angeles, California, on March 31, 2026,(Photo by Frederic J. BROWN / AFP)
Gas prices are displayed at a Chevron station in Los Angeles, California, on March 31, 2026,(Photo by Frederic J. BROWN / AFP)
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EU Member States Must Coordinate on Energy Prices amid Iran conflict, Von Der Leyen Says

Gas prices are displayed at a Chevron station in Los Angeles, California, on March 31, 2026,(Photo by Frederic J. BROWN / AFP)
Gas prices are displayed at a Chevron station in Los Angeles, California, on March 31, 2026,(Photo by Frederic J. BROWN / AFP)

The European Union's member states must coordinate on energy prices amid a 22 billion euro ($25.70 billion) increase in fossil fuel bills since the start of the Iran war, EU Commission President Ursula von der Leyen said on Monday.

"We're also looking into ... coordination of member states' gas storage filling to avoid that many member states go to the market at the same time," von der Leyen told reporters in Brussels.

"And we will coordinate oil stock releases, to achieve the largest possible effect, and we will ensure that member states' emergency measures will not impact the single market."

The EU Commission is planning to publish proposals for energy price measures on April 22, to be discussed by EU leaders at their informal summit next week, according to Reuters.

Separately the EU's executive arm will present an electrification strategy before the summer, von der Leyen said as she stressed the need for structural measures to lower energy prices as well.

"We are paying a very high price for our global dependency on fossil fuels, and the grim reality for our continent is fossil fuel energy will remain the most expensive option in the years to come," von der Leyen said.

"Our strategy to decarbonize has not only been confirmed in the last years, but is growing in importance day by day," she added.

 

 

 

 

Business

Iraqi Oil Exports Plummet 81.3% in March Due to Hormuz Closure

The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty
The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty
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Iraqi Oil Exports Plummet 81.3% in March Due to Hormuz Closure

The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty
The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty

Iraq’s oil exports plunged in March to 18.6 million barrels, down from 99.87 million in February – a drop of 81.3 percent - due to the closure of the Strait of Hormuz, according to official figures released Monday.

The state-run Organization for Marketing of Oil said revenues also have fallen to just $1.95 billion, down from over $6.81 billion.

The figures showed that exports from the Kurdistan Region through Türkiye’s Ceyhan port also dropped to 1.27 million barrels, down from 5.55 million barrels in February.

Meanwhile, operations resumed on Monday at a major gas facility in Iraq's Kurdish region, the Emirati company running the complex said, after more than a month of disruption due to the US-Iran war.

Dana Gas announced "the resumption of production of the Khor Mor gas facility in the Kurdistan Region of Iraq, following a period of intermittent operations," according to a statement published by the Abu Dhabi stock exchange.

On February 28 the UAE company suspended natural gas supplies from the complex as war broke out, authorities in Iraq's autonomous Kurdistan region had said.

Kurdistan's electricity and natural resources ministries said the decision was made "due to the extraordinary circumstances and ongoing events in the region, and to protect employees at the Khor Mor field."

The Khor Mor complex, which supplies most of Kurdistan's power stations, has been hit several times in recent years in attacks blamed on pro-Iran armed groups in Iraq.