Bahrain’s economy grows in Q1 as non-oil sector rises 3.5%
Updated 18 July 2023
ARAB NEWS
RIYADH: Bahrain posted a real gross domestic product growth rate of 2 percent in the first quarter of 2023, fueled by a rise of 3.5 percent in the non-oil sector, showed the country’s recent economic report.
According to the Bahraini Ministry of Finance and National Economy, the average quarterly increase of the annual non-oil GDP has reached about 5.7 percent since implementing its Economic Recovery Plan in October 2021.
The initiative aims to stimulate growth, attract investments and create job opportunities for the through five priorities and 27 programs.
According to the latest figures, the non-oil economic sectors experienced positive annual growth, with the transportation and communications sphere posting the highest growth rate of 11.2 percent, revealed the ministry’s quarterly report.
This rise was backed by the expansion of several sector indicators, including the 42.3 percent increase in arrivals through Bahrain International Airport and the 32.1 percent rise in total aircraft movement.
In addition, real estate and business activities, financial corporations, hotels and restaurants and trade all grew between 4.2 percent and 5.3 percent.
The report also noted that Bahrain’s manufacturing contracted by 1.1 percent, whereas construction shrunk by 1.3 percent in the first three months of 2023.
On the other hand, the oil sector witnessed a 5.9 percent drop due to the cutback in production brought about by seasonal maintenance, showed the report.
Between January and March, the quarterly average price of Brent crude fell by 20.6 percent to $81.07. Oil amounted to almost 15 percent of the country’s GDP.
The report, however, expects real GDP to increase by 2.9 percent in 2023 as the non-oil sector grew by 3.5 percent and the oil sector remained stable.
It added that the country will witness a growth rate of 3.2 percent.
In its annual economic report released in March, the ministry reported a growth rate of 4.9 percent in 2022, the highest economic growth pace since 2013.
The document also highlighted that Bahrain was steadily progressing in its economic diversification journey, as its non-oil real GDP witnessed 6.2 percent growth in 2022, the highest since 2012.
Bahrain’s non-oil GDP growth in 2022 also surpassed the 5 percent annual target set by its economic recovery plan.
“The positive results posted today are the cumulation of many years of hard work and careful planning by the Government of Bahrain to lay the foundations for a sustainable, diverse and prosperous economy,” said Bahrain’s Minister of Finance and National Economy Salman bin Khalifa Al-Khalifa at the time.
Islamabad is trying to offload 51-100 percent stakes in PIA under $7 billion IMF program to overhaul state-owned firms
2024 auction drew only one offer of $36 million, which was far below government’s $305-million floor price, and was rejected
Arab News Pakistan
Islamabad
Expressions of interest are due today, Thursday, for an up to 100 percent stake in Pakistan International Airlines (PIA), the country’s loss-making national flag carrier, as the government moves forward with long-delayed privatization plan aimed at easing pressure on its strained public finances.
The sale of PIA will be the first major privatization for around two decades. Turning around loss-making state-owned enterprises is a condition of an ongoing $7 billion bailout by the International Monetary Fund.
The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase.
In an advertisement issued by the government last month, it had said the deadline for the submission of expressions of interest and Statements of Qualification for the “Divestment of Pakistan International Airlines Corporation Limited through privatization” had been extended to 4pm hours on Thursday, June 19, 2025.
No changes had been made to the remaining terms and conditions, the privatization commission had said.
In April 2025, the commission invited expressions of interest from domestic and international investors to acquire a majority stake, ranging from 51 percent to 100 percent, in PIA, initially setting a submission deadline of Tuesday, June 3, 2025.
According to the public notice, each EOI must be accompanied by a non-refundable processing fee of $5,000 or Rs1.4 million, with consortia required to pay the fee through any one member. Eligible bidders include legal entities such as companies, firms, and corporate bodies, either individually or as part of a consortium.
Reuters reported on Wednesday that among those planning bids are Pakistani conglomerate the Yunus Brothers Group, owners of the Lucky Cement and energy companies, and a consortium led by Arif Habib Limited that includes Fatima Fertilizer, Lake City, and The City School.
Fauji Fertilizer Company, which is part-owned by the military, has also said it will be making an expression of interest.
“The board … has approved submission of an expression of interest and pre-qualification documents to the Privatization Commission … and undertaking a comprehensive due-diligence exercise,” FFC said in a notice to the Pakistan Stock Exchange this week.
FFC is Pakistan’s biggest fertilizer maker and has diversified interests in energy, food and finance. Any deal on PIA would expand the military group’s footprint into aviation, though final terms will hinge on the government’s privatization process and regulatory approvals.
A group of PIA employees has also come forward to bid.
“The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We’re doing this to save jobs and turn around the company,” Hidayatullah Khan, president of the airline’s Senior Staff Association, told Reuters this week.
This is Pakistan’s second attempt to sell PIA.
A 2024 auction drew only one offer – Rs10 billion ($36 million) for 60 percent of the airline from real-estate developer Blue World City – far below the government’s Rs85 billion ($305 million) floor price, and was rejected.
Pakistan had offloaded nearly 80 percent of the airline’s legacy debt and shifted it to government books ahead of the privatization attempt. The rest of the debt was also cleaned out of the airline’s accounts after the failed sale attempt to make it more attractive to potential buyers, according to the country’s privatization ministry.
In April, PIA posted an operating profit of Rs9.3 billion ($33.1 million) for 2024, its first in 21 years.
The airline has for years survived on government bailouts as its operational earnings were eaten up by debt servicing costs.
Officials say offloading the debt burden and recent reforms like shedding staff, exiting unprofitable routes and other cost-cutting measures led to the profitable year.
Ahead of the attempt to sell the airline last year, PIA had faced threats of being shut down, with planes impounded at international airports over its failure to pay bills and flights canceled due to a shortage of funds to pay for fuel or spare parts.
KARACHI: Pakistan raised more than Rs1.2 trillion ($4.2 billion) in a government bond auction on Wednesday, including the launch of its first-ever 15-year zero coupon bond, in a move the finance ministry said marked a shift toward longer-term and more diversified debt instruments.
The new zero coupon bond, which does not pay periodic interest but offers a lump sum at maturity, garnered strong investor demand and raised over Rs47 billion ($164.5 million).
The instrument is part of the government’s broader debt management strategy aimed at reducing short-term refinancing risk, encouraging Islamic finance and expanding the country’s long-term investment landscape.
“This is a major step forward in making Pakistan’s financial system stronger and more resilient,” the country’s finance minister, Muhammad Aurangzeb, said in a statement.
“We are introducing new, smart ways of borrowing that reduce risk and give investors more options,” he added. “Our aim is to manage public debt responsibly, promote Islamic finance and attract more long-term investment to support the country’s economic growth.”
The ministry noted the auction saw declining yields across other government securities, reflecting market optimism over moderating inflation and expectations of lower interest rates.
It said the average maturity of domestic debt had also risen from 2.7 years to 3.75 years, easing near-term repayment pressure.
The ministry noted the investor base was also broadening, with more participation from pension funds and insurance companies in addition to commercial banks.
It maintained the diversification helps distribute financial risk and deepen Pakistan’s local capital markets.
Officials also informed additional savings instruments for ordinary citizens, particularly Shariah-compliant bonds, are in development to foster retail investment and financial inclusion.
Despite ongoing global economic uncertainty, the ministry said the auction results reflect renewed investor confidence in Pakistan’s economic direction and reform efforts.
Closing Bell: Saudi main index slips 1.15% to close at 10,591
MSCI Tadawul Index decreased by 11.84 points to close at 1,366.6
Parallel market Nomu lost 254.4 points to end at 26,203.84 points
Updated 18 June 2025
Nadin Hassan
RIYADH: Saudi Arabia’s Tadawul All Share Index declined on Wednesday by 122.69 points, or 1.15 percent, to end at 10,591.13.
Total trading turnover of the benchmark index was SR6.22 billion ($1.66 billion), with 18 stocks advancing and 231 declining.
The MSCI Tadawul Index also decreased by 11.84 points, or 0.86 percent, to close at 1,366.6
The Kingdom’s parallel market, Nomu, reported drops, losing 254.4 points, or 0.96 percent, to close at 26,203.84 points. This comes as 30 stocks advanced while as many as 55 retreated.
Among the top gainers, BAAN Holding Group Co. rose 1.6 percent to SR36.85, while Advanced Petrochemical Co. added 1.26 percent to end at SR28.1.
Dallah Healthcare Co. and Naseej International Trading Co. gained 1.05 percent and 0.94 percent, respectively, closing at SR115.4 and SR74.90.
Saudi Tadawul Group Holding Co. also rose 0.87 percent to close at SR162.
Among the worst performers, National Co. for Learning and Education led losses with a decline of 7.53 percent to close at SR140.
Saudi Marketing Co. followed, shedding 7.04 percent to settle at SR15.32, while Ataa Educational Co. fell 5.85 percent to SR61.20.
Arabian Pipes Co. ended the session down 5.46 percent at SR5.54, and Saudi Reinsurance Co. edged 5.13 percent lower to SR42.55.
On the announcements front, Saudi National Bank announced its intention to fully redeem its SR4.2 billion Tier-1 capital sukuk at face value on June 30, marking the fifth anniversary of its issuance.
The sukuk, which was issued on June 30, 2020, with a total value of SR4.2 billion, will be redeemed at 100 percent of the issue price in accordance with its terms and conditions.
The bank confirmed that all necessary regulatory approvals for the redemption have already been obtained.
SNB closed Wednesday’s session 0.43 percent lower to reach SR34.35.
Saudi Arabia’s low-cost carrier flynas made its stock market debut, opening at SR77.50 and climbing to SR84.10 before retreating to a low of SR69.90. The stock closed at SR77.30, 3 percent below its IPO price of SR80.
Saudi Arabia ranks 17th globally in competitiveness index as it outshines economic heavyweights
Listing driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms
Kingdom placed behind China in 16th and ahead of Australia in 18th place
Updated 18 June 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has maintained its spot in the top 20 of the World Competitiveness Ranking, ahead of global heavyweights like the UK, Germany and France.
The Kingdom secured 17th position on the list, driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms.
Issued by the International Institute for Management Development’s World Competitiveness Center, the ranking is widely recognized as a benchmark for evaluating how effectively countries utilize their resources to drive long-term economic growth.
Saudi Arabia was placed just behind China in 16th and ahead of Australia in 18th place.
Although this marks a slight drop from 16th in 2024, Saudi Arabia’s 2025 ranking represents a significant improvement from 32nd in 2023 and 24th in 2022, underscoring its rising economic stature.
Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. File/SPA
As part of Vision 2030, Saudi Arabia launched the National Competitiveness Center in 2019, with the organization now working with 65 government bodies to drive reforms centered on productivity, sustainability, inclusiveness, and resilience.
According to the World Competitiveness Center, the Kingdom needs to “continue efforts to promote renewable energy and reduce carbon emissions” and “carry on enhancing overall competitiveness across multiple pillars.”
Improvement will also come if Saudi Arabia continues to “invest even more in human capital development across all economic sectors” and push ahead with “ongoing government endeavors to achieve the targets in the Saudi 2030 vision.”
The IMD report is one of the world’s most comprehensive competitiveness benchmarks, evaluating 69 countries across four pillars: economic performance, government efficiency, business efficiency, and infrastructure.
The ranking shows that GCC countries continue to demonstrate their growing economic strength and regional importance, with the UAE leading the group, securing fifth place globally, reflecting its diversified economy and strategic initiatives to attract investment.
Qatar follows in ninth place, supported by substantial infrastructure development and robust financial resources.
Bahrain was ranked 22, Oman came in at 28, and Kuwait was placed at 36, showing steady progress through structural reforms and sectoral investment despite ongoing challenges.
These rankings underscore the GCC’s ambition to strengthen global economic resilience and competitiveness.
Switzerland, Singapore, and Hong Kong lead the ranking, while Canada, Germany, and Luxembourg saw the most notable improvements among the top 20 economies.
Saudi focus
According to the IMD, Saudi Arabia has made progress in several key economic areas, although some aspects still require improvement.
On the economic performance indicator, the Kingdom ranks 17th globally with a score of 62.3. Its domestic economy scored 59.2, placing it 25th worldwide, an improvement of six positions from the previous year.
Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Shutterstock
International trade advanced three places to 29th with a score of 56.0, while global investment climbed four spots to 16th with a score of 57.8, signaling increased investor confidence.
However, the employment sector declined slightly, dropping three positions to 29th with a score of 55.6.
Inflationary pressures impacted the prices indicator, which fell eight places to 19th despite maintaining a relatively strong score of 60.7.
These mixed results reflect Saudi Arabia’s ongoing efforts to strike a balance between growth and economic stability amid global and domestic challenges.
Public finance indicators remain solid, with a score of 69.5, placing the Kingdom 13th globally, despite a modest three-position drop.
Tax policy holds steady at 67.6 points and 12th place, with a similar three-rank decline. The institutional framework experienced a more pronounced decline, dropping seven places to 27th with a score of 58.6, indicating potential areas for reform.
In contrast, business legislation improved, rising two places to 13th with a score of 67.6, indicating regulatory progress. The societal framework remains a key challenge, ranking 55th with a score of 44.2, representing a nine-position decline, which highlights the need for continued social and structural development to support economic goals.
Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Productivity and efficiency showed further strength, scoring 66 and placing the Kingdom 15th, up six spots.
The labor market remains a key strength, ranking 9th despite a four-place drop, with a score of 64.2. The finance sector gained three ranks to 19th with 63.4 points, while management practices rose to 17th with a score of 64.
Attitudes and values remain a significant national asset, ranking third globally with a score of 81.6, reflecting a strong culture of resilience and ambition.
Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. Technological infrastructure rose 10 places to 23rd with a score of 59.5, and scientific infrastructure improved nine spots to 29th with a score of 52.1.
Health and environment indicators gained slightly, moving up one place to 47th with a score of 47.5. Education declined marginally, down one position to 39th with a score of 55.4, signaling an area for continued focus.
Riyadh Air to launch new destination every 2 months as 787 deliveries near
Carrier is awaiting delivery of its initial aircraft to commence services
Riyadh Air secured necessary landing slots for its first destinations
Updated 18 June 2025
NADIN HASSAN
RIYADH: Saudi Arabia’s Riyadh Air is gearing up to introduce a new international destination every two months once it begins operations, as the carrier prepares to receive its first Boeing 787 aircraft.
Riyadh Air, fully owned by the Public Investment Fund, is awaiting delivery of its initial aircraft to commence services, according to CEO Tony Douglas.
Speaking to Bloomberg, he said the airline requires two jets to initiate a round-trip route to each new destination, adding that the Saudi carrier aims to connect to 100 cities by 2030 as part of its long-term growth strategy.
This aligns with the Kingdom’s National Aviation Strategy, which targets doubling passenger capacity to 330 million annually from over 250 global destinations and increasing cargo handling to 4.5 million tonnes by 2030.
The carrier currently has four Boeing 787 Dreamliners in different stages of assembly at Boeing’s facility in Charleston, South Carolina. Operations are expected to begin once the first two aircraft have been delivered.
Riyadh Air had initially planned to launch services in early 2025, but delays in aircraft handovers from Boeing have pushed back the timeline.
“The fact that these are in production probably brings my blood pressure down,” Douglas said. “I will actually not believe they have been delivered until the day after they have been delivered.”
Douglas also said Riyadh Air has secured the necessary landing slots for its first destinations, though he did not disclose which cities.
At the Paris Air Show this week, the airline announced an order for up to 50 Airbus A350 long-range jets, with deliveries expected to begin in 2030.
Riyadh Air has also placed orders for 60 Airbus A321neo narrowbody aircraft and as many as 72 Boeing 787s, including options.
Commenting on the Airbus order, Douglas said the decision was based on the aircraft’s capabilities and favorable commercial terms when compared with Boeing’s 777X model. “It was a very close call,” he said.
The airline’s growth strategy reflects the Kingdom’s ambition to transform Riyadh into a global travel hub and position Saudi Arabia as a major player in international aviation.
Riyadh Air aims to contribute to the broader Vision 2030 goals by enhancing connectivity and promoting tourism across the Kingdom.
