JEDDAH: Bahrain’s economy grew 3.5 percent in 2025, driven by a 4.1 percent expansion in non-oil sectors that offset a contraction in oil output, according to official data.
Non-oil activities accounted for 85.8 percent of gross domestic product at constant prices, underscoring the increasing role of diversified sectors in supporting growth, the Ministry of Finance and National Economy said in its Bahrain Economic Report 2025, citing preliminary data from the Information and eGovernment Authority.
Growth momentum strengthened in the fourth quarter, when GDP rose 4.6 percent, supported by a 7.4 percent surge in non-oil sectors despite a 12.3 percent contraction in oil activities.
This comes as economic performance across the Gulf remained expansionary, with Saudi Arabia’s GDP growing 4.5 percent over the same period, while the UAE recorded 5.6 percent growth, largely driven by non-oil sectors. Oman’s economy expanded 2.4 percent and Qatar’s 2.6 percent, both supported by steady gains in non-oil activity.
At current prices, Bahrain’s GDP increased by 3.7 percent, with non-oil sectors rising 5.3 percent and offsetting a 5.7 percent drop in the oil sector, underscoring broad-based expansion across the non-oil economy.
“Among non-oil activities, professional, scientific, and technical activities, as well as accommodation and food service activities, recorded the highest annual growth rates at 6.4 percent each,” the ministry’s report said.
It added that financial and insurance activities followed with a growth of 5.6 percent, while construction and transportation and storage grew by 5 percent and 4.7 percent, respectively.
“Real estate activities increased by 4.3 percent, while wholesale and retail trade grew by 4.2 percent,” the report said, adding that education recorded a growth of 4 percent, and manufacturing rose by 3.7 percent.
Foreign direct investment also strengthened, with inward flows rising 1.8 percent year on year in the fourth quarter of 2025, bringing total FDI stock to 17.7 billion Bahraini dinars ($46.9 billion).
The information and communication sector recorded an annual growth of 3.4 percent, with the number of mobile subscribers reaching 2.32 million by the end of 2025.
“Meanwhile, total broadband subscriptions reached 2.44 million, with penetration reaching 153.3 percent of the total population,” the report said.
Oil activities accounted for 14.2 percent of GDP in 2025 at constant prices, declining by 0.3 percent year on year to 2.23 billion Bahraini dinars.
“At current prices, oil activities contracted by 5.7 percent to 2.36 billion dinars, mainly due to lower global oil prices, as the average price of Brent crude oil dropped by 14.2 percent reaching $69.1 per barrel in 2025, compared to approximately $80.5 per barrel in 2024,” the report stated.
The report pointed out that total oil production from Abu Sa’afa and Bahrain fields in 2025 amounted to 64.2 million barrels, reflecting a year-on-year increase of 0.7 percent. “The daily average oil production from the offshore Abu Sa’afa field increased by 2.3 percent YoY, to reach 139,011 bpd. Meanwhile, the daily average production from the onshore Bahrain field declined by 3.6 percent YoY, averaging 37,007 bpd,” the report added.
Inflation remained subdued, with the consumer price index declining 0.1 percent over the year, while the producer price index fell 4.7 percent, driven by lower energy prices.
“Also, prices in manufacturing activities fell by 2.7 percent, influenced by a 7.8 percent decline in the prices of manufacturing coke and refined petroleum products,” the report said.
Government-backed development projects continued to support activity, with contracts worth more than $83 million awarded in 2025 under the GCC Development Program. Total awarded projects since the program’s launch reached about $6.5 billion.
