May 20, 2025
Bahrain’s economy saw solid growth in the fourth quarter of 2024, driven by a robust expansion in its non-oil sector, though trade within the GCC experienced a slight dip, according to a new report.
The report by the Bahrain Chamber reveals that the kingdom’s real Gross Domestic Product (GDP) expanded by 3.4 per cent year-on-year in Q4 2024. This growth was largely fuelled by a 4.6pc surge in the non-oil sector. In contrast, the oil sector contracted by 3.5pc.
Among the non-oil sectors, Information and Communication led the way with a remarkable 12.4pc growth. Transportation and logistics also saw significant expansion, growing by 11pc, while the manufacturing sector grew by 7pc. Financial and insurance activities remained the largest contributor to Bahrain’s real GDP, accounting for 17.3pc.
Despite the strong domestic performance, trade between Bahrain and its GCC neighbours saw a slight decrease. The total volume of trade between Bahrain and other GCC countries fell by 2pc to $2 billion in Q4 2024, compared to $2.03bn in Q4 2023.
However, trade between Bahrain and Qatar bucked this trend, soaring by 255pc. In Q4 2024, trade with Qatar reached $116.05 million, a significant jump from $32.73m in the same period of the previous year.
Saudi Arabia remains Bahrain’s largest trading partner within the GCC, with trade increasing by 2pc to $984m. The UAE was the second-largest, although trade between the two countries decreased by 10pc to $710m. Trade with Kuwait and Oman also declined, falling by 18pc and 24pc, respectively.
China continues to be a major player in Bahrain’s trade. It is Bahrain’s top import partner, with imports valued at $571.2m, with smartphones being the top imported commodity. Saudi Arabia is the top export partner, with exports valued at $739.4m, with iron ores and concentrates leading exports.
Bahrain also saw increases in domestic financial transactions. Fawri+ transactions, an instant fund transfer service, increased by 12pc, and Point of Sale (POS) transactions rose by 14pc in Q4 2024 compared to the same period in 2023.