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Plan Type: National Development Plan

Member State: Bahrain

Document Language: English

SDGs:
GOAL 1: No Poverty GOAL 8: Decent Work and Economic Growth GOAL 9: Industry, Innovation and Infrastructure GOAL 11: Sustainable Cities and Communities Goal 16: Peace, Justice and Strong Institutions

Economic Recovery Plan (2022 -2026)

June 2022

The Economic Recovery Plan for Bahrain (2022-2026) is built on five key pillars aimed at revitalizing the nation’s economy. First, it focuses on creating quality jobs for citizens, positioning them as the ‘employee of choice’ in the labor markets, thus enhancing employment opportunities and workforce attractiveness. Second, it seeks to simplify and increase the efficiency of commercial procedures, reducing bureaucratic hurdles and fostering a more business-friendly environment. Third, the plan includes launching major strategic projects that will drive significant economic growth and development. Fourth, it emphasizes developing strategic priority sectors, leveraging areas with high growth potential to diversify and strengthen the economy. Finally, the plan aims to achieve fiscal sustainability and economic stability, ensuring long-term financial health and resilience.

Pillars & Objectives

Pillar: Creating quality jobs for citizens to make them the ‘employee of choice’ in the labor markets
Objectives:
  • Implement the National Labor Market Strategy initiatives
  • Review labor fees to reduce the gap in the total cost of hiring a Bahraini vs. non-Bahraini
  • Launch Tamkeen’s new programs to enhance the competitiveness of the Bahraini workforce in line with current and future labor market needs
Pillar: Simplifying and increasing the efficiency of commercial procedures
Objectives:
  • Upgrade Sijilat and accelerate the issuance of government licenses to companies
  • Launch an electronic system for urban planning services
  • Update laws and legislations to support ongoing development
  • Launch the government land bank
  • Offer residency permits for talented individuals and foreign investors
  • Sign international bilateral economic agreements
  • Review and documentation of government services and putting in place service level agreements (SLA)
Pillar: Launching major strategic projects
Objectives:
  • Designate new industrial investment areas
  • Partner with the private sector to execute major projects
Pillar: Developing strategic priority sectors
Objectives:
  • Oil and gas sector strategy
  • Tourism sector strategy
  • Logistics sector strategy
  • Industrial sector strategy
  • Financial services sector strategy
  • Telecommunications, IT, and digital economy strategy
  • Launch Tamkeen’s new enterprise programs to drive growth through enhancing their productivity and encouraging investment in strategic sectors
Pillar: Achieving fiscal sustainability and economic stability
Objectives:
  • Reduce recurrent non-manpower expenditure
  • Reduce project spend
  • Reduce manpower expenditure
  • Streamline the distribution of cash subsidies to citizens
  • Increase contributions of government owned entities
  • Adjust commodities prices and prices of services provided to companies
  • Introduce new government services revenue initiatives
  • Increase VAT to 10% through legislative procedures