Non Oil Sector Leads Bahrain’s 2025 Economic Growth

The Ministry of Finance and National Economy has released Bahrain’s Economic Report for 2025

Riza Castillo
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Manama, Bahrain | April 13, 2026

Bahrain’s non oil sector continued to drive economic growth in 2025, according to the latest Economic Report released by the Ministry of Finance and National Economy and published on its official website (www.mofne.gov.bh).

According to preliminary national accounts data from the Information and eGovernment Authority, Bahrain’s GDP at constant prices grew by 3.5 percent year on year in 2025, supported by a 4.1 percent increase in non oil activities, while oil related activity recorded a slight decline of 0.3 percent.

At current prices, GDP rose by 3.7 percent, with non-oil sectors expanding by 5.3 percent, offsetting a 5.7 percent contraction in the oil sector.

Growth accelerated toward the end of the year. In the fourth quarter of 2025, GDP at constant prices increased by 4.6 percent year-on-year, driven by a 7.4 percent rise in non-oil activities. During the same period, oil activity declined by 12.3 percent.

📈 Non-Oil Sector Strengthens Its Share

Non-oil activities continued to play a leading role in Bahrain’s economy, accounting for 85.8 percent of GDP at constant prices in 2025.

Several sectors recorded notable gains:

  • Professional, scientific, and technical activities: +6.4%
  • Accommodation and food services: +6.4%
  • Financial and insurance activities: +5.6%
  • Construction: +5.0%
  • Transportation and storage: +4.7%
  • Real estate: +4.3%
  • Wholesale and retail trade: +4.2%
  • Education: +4.0%
  • Manufacturing: +3.7%

The report also highlighted a 1.8 percent year-on-year increase in inward foreign direct investment in Q4 2025, bringing total FDI stock to BHD 17.7 billion.

🌍 Global Rankings Reflect Economic Progress

Bahrain continues to advance across global economic and digital competitiveness indicators.

The Kingdom ranked first globally in e-commerce legislation in the Network Readiness Index 2025, published by the Portulans Institute.

It also placed third globally in the Business Incentives pillar of the Innovators Business Environment Index 2026, released by StartupBlink.

In addition, Bahrain maintained its Group A classification in the GovTech Maturity Index 2025 issued by the World Bank Group, ranking 15th globally out of 197 countries.

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