Banking ‘constitutes 17pc of Kingdom’s GDP’

Bahrain’s banking sector’s contribution to the GDP is at 17 percent and is expected to play a crucial role in the growth of the GDP this year, it was revealed. Banks are playing an important role in the growth of Bahrain’s economy, said Adnan Ahmed Yousef, Chairman of the Board of Directors of the Bahrain Association of Banks (BAB).

He was speaking during The Open Dialogue Forum held yesterday. The event was organized by the Bahrain Association of Banks. He said that the bank financing portfolio grew by BD500 million during the first half of this year to BD 9.2 billion, while the contribution of the sector reached almost 17 percent in GDP and employs 14,093 employees, of whom 66pc are Bahrainis. “Let me stress at the outset that the successes achieved by the Association and the banking sector in Bahrain have taken place against the backdrop of a supportive local economic environment.

According to the EDB, Bahrain’s non-oil sector is expected to grow by 4.3pc in 2018, with GDP growth estimated at 3.4pc. “The outlook follows a strong performance in 2017 as Bahrain’s fastest-growing economy in the GCC region grew by 3.8pc with a growth rate of 4.8pc in the non-oil sector. The expected growth is mainly supported by strong growth in the lending sector by banks in Bahrain in 2018,” he said.