Bahrain's Non-Oil GDP Sees Growth in Early 2026

Aug 27, 2026

50 min

Aug 27, 2026 03:30

Bahrain's non-oil GDP at constant prices grew by 2.2% in Q1

## Economic Performance in Q1 2026

Bahrain's non-oil GDP experienced a 2.2% growth in the first quarter of 2026, as reported by the Ministry of Finance and National Economy. This growth occurred despite challenges in the oil sector, which saw a significant decline.

## Impact of Regional Tensions

The overall GDP at constant prices contracted by 3.8% year-on-year, largely due to a 37.2% drop in oil activities. This decline was attributed to restrictions on maritime traffic through the Strait of Hormuz and scheduled maintenance activities.

## Non-Oil Sector Contributions

Non-oil sectors played a crucial role in cushioning the economy, contributing 90.1% to the GDP at constant prices. Financial and Insurance Activities were the largest contributors, with a 19.7% share and an 8.6% increase year-on-year. Manufacturing, Public Administration, and Construction also made significant contributions.

## Diversified Economic Structure

Bahrain's diversified economy is reflected in the positive growth of 9 out of 13 non-oil activities. These sectors continue to support the national economy amid regional challenges.

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