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 Bahrain’s business confidence index increase by 2.67% in Q2 of 2022


Bahrain’s business confidence index increase by 2.67% in Q2 of 2022

As many as nine out of 10 investors expect stability in Bahrain’s investment climate for the second quarter of this year, according to a government survey on the Business Confidence Environment in the country.

According to the findings from the Information and e-Government Authority in Bahrain, the Business Confidence Index (BCI) stood at 98.13 points in Q2 of 2022 compared with 95.46 points in Q1 of 2022, an increase of 2.67 points or 2.8%.

The current index has shown a rise of 13.01 points compared with the same period of 2021. The quarterly survey measures business confidence by company size, industry, and investment type.

A positive outlook overall was recorded in the business performance, profits, and competition sub-indices in Q2 of 2022.

The results revealed that 90% of the companies have a stable to an optimistic outlook, which is an increase of 1.25% compared with the previous quarter. Nearly half (48.1%) of companies expect a stable business performance, while 40.9% anticipate improvement.

Stable and Favourable

The survey revealed that a total of 80.8% of companies experienced stable to favourable business performance during Q1 of 2022, wherein 59.1% of companies revealed stability in their performance, while 21.7% expressed overall satisfaction. In contrast, 19.2% of companies showed dissatisfaction with their business performance.

The availability of this information helps foster an investor-friendly and competitive business environment, allowing decision-makers to take appropriate actions based on confidence levels relative to company size, industry, and investment type.

Business confidence indices are calculated using the results of quarterly surveys carried out by iGA on a sample of the business community.

These range from micro to large enterprises, including those classified as foreign and local investments.

The aim of the survey was to provide an indicator of the confidence levels of active establishments registered at the Industry and Commerce Ministry as well as those licensed by the Central Bank of Bahrain (CBB).

Last May, the International Monetary Fund (IMF) said that Bahrain’s economy would grow by 3.4% this year, up from 2.2% recorded at the end of 2021.

FDI Registers Growth

Meanwhile, findings of another survey showed that Bahrain has recorded FDI worth $33.1 billion for 2021 compared with $31.2 billion, registering an increase of 5.6% over the previous year, Bahrain’s Information & e-Government Authority (iGA) said.

The survey, conducted in collaboration with the Central Bank of Bahrain (CBB) and the Economic Development Board (EDB), measures the volume and inflows of foreign investments made by key entities in different economic sectors.

It also covered the volume of investment flow by establishments active across all sectors whose capital is owned by non-resident entities.

The survey showed that Bahrain’s annual FDI inflows for the 12-month period were approximately $1.76 billion, dominated mostly by financial and insurance activities worth $1.15 billion and manufacturing at $634 million.

Global Business Magazine

Global Business Magazine

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