RIYADH: Bahrain’s economy expanded by 2.1 percent year on year in the third quarter of 2024, driven by strong performance in its non-oil sectors, official data showed. 

According to data from the Ministry of Finance and National Economy, non-oil sectors grew 3.9 percent during the period, accounting for 86.4 percent of real gross domestic product.

Key contributors included the information and communication sector, which surged 11.9 percent year on year, supported by increased mobile and broadband subscriptions. 

Bahrain’s third-quarter growth mirrors positive trends across the Gulf Cooperation Council, with Saudi Arabia’s GDP rising 2.8 percent and Qatar’s advancing 2 percent, driven by ongoing economic diversification. 

Despite these gains, Bahrain’s economy faced challenges in the oil sector, where activities contracted by 8.1 percent year on year, contributing to a 0.9 percent decline in nominal GDP. 

However, non-oil sectors fared well, with the country’s financial and insurance activities performing strongly, growing by 5.8 percent, while electronic funds transfers increased by 13.7 percent year-on-year. 

Manufacturing expanded by 4.2 percent, aided by higher production at the Bapco Refinery, while wholesale and retail trade grew by 2.1 percent, bolstered by a significant rise in e-commerce transactions. 

In contrast, the oil sector faced headwinds due to maintenance activities at the Abu Sa’afa field and declining global oil prices. This resulted in a year-on-year contraction of oil activities by 8.1 percent in real terms, while average daily oil production from the Abu Sa’afa field fell by 11.5 percent year on year. 

Trade and investment activities also presented mixed results. The current account surplus narrowed by 54.5 percent year on year to 148.6 million Bahraini dinars ($394.2 million), largely due to a 19.2 percent decline in the value of oil exports. 

Non-oil exports, however, saw modest growth of 1.1 percent, with base metals and mineral products leading the category. Foreign direct investment stock increased by 3.5 percent year on year, reaching 16.5 billion dinars. The financial and insurance sector remained the dominant contributor, accounting for 67.3 percent of the total foreign direct investments. 

Development projects in various sectors continued to advance during the quarter. The Bapco Modernization Program, completed in December, increased refinery capacity by 42 percent, representing the largest capital investment in Bapco’s history. 

In the tourism sector, four new five-star hotels and the “Hawar Resort by Mantis” were inaugurated, enhancing Bahrain’s hospitality offerings. 

The healthcare sector saw the construction of a new rehabilitation center in Al Jasra, while the Aluminum Downstream Industries Zone was launched as part of Bahrain’s Industrial Strategy. 

Monetary and financial indicators reflected positive trends. The broad money supply expanded by 6.1 percent year on year, supported by a 15.6 percent increase in government deposits. 

Total loans provided by retail banks grew by 4.9 percent year on year, with personal loans comprising nearly half of the total. The labor market recorded a 1.7 percent increase in the number of Bahrainis employed in the public and private sectors, reaching 153,842. 

Recruitment under the Economic Recovery Plan met 98 percent of its annual target for 2024, while over 13,679 Bahrainis received training. 

Bahrain’s capital markets also performed well, with the Bahrain All Share Index closing the third quarter at 2,012.77 points, a year-on-year increase of 3.8 percent. The Bahrain Islamic Index recorded even stronger growth, rising by 10.1 percent. Market capitalization increased by 2.4 percent, reaching 7.8 billion dinars. 

In global competitiveness rankings, Bahrain retained its position as the freest economy in the Arab world, ranking 34th globally in the Economic Freedom of the World report. 

The nation also climbed eight places to rank 30th in the IMD World Digital Competitiveness Ranking, reflecting significant progress in adopting and leveraging digital technologies. 

BEIJING/SINGAPORE: Oil prices eased on Tuesday, extending losses into a second consecutive session after last week’s rally, although concerns about tighter Russian and Iranian supply amid widening Western sanctions checked losses, according to Reuters. 

Brent futures edged down 8 cents, or 0.1 percent, to $76.22 a barrel by 07:52 a.m. Saudi time, while US West Texas Intermediate crude fell 15 cents, or 0.19 percent, to $73.42. 

Both benchmarks slid on Monday, after rising for five days in a row last week to settle at their highest levels since October on Friday amid expectations of more fiscal stimulus to revitalize China’s faltering economy. 

“This week’s weakness is likely due to a technical correction, as traders react to softer economic data globally that undermines the optimism seen earlier,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish economic news from the US and Germany. 

Also dragging on oil prices is the rising supply from non-OPEC countries that, coupled with weak demand from China, is expected to keep the oil market well supplied this year. 

Market participants are waiting for more data this week, such as the US December nonfarm payrolls report on Friday, for clues on US interest rate policy and oil demand outlook. 

“The move higher in crude oil prices appears to be running out of momentum,” ING analysts wrote in a note. 

“While there has been some tightening in the physical market, fundamentals through 2025 are still set to be comfortable, which should cap the upside.” 

Worries over tightening Russian and Iranian supply amid sanctions, however, kept a floor under oil prices. 

The uncertainty has translated into better demand for Middle Eastern oil, reflected in a hike in Saudi Arabia’s February oil prices to Asia, the first such increase in three months. 

Money managers raised their net long US crude futures and options positions in the week to Dec. 31, the US Commodity Futures Trading Commission said on Monday.