Celebrating a Legacy of Leadership: 25 Years of His Majesty King Hamad bin Isa Al Khalifa's Vision

As we commemorate the silver jubilee of His Majesty King Hamad bin Isa Al Khalifa's accession to the throne, we reflect on Bahrain's remarkable progress over the past 25 years. Since His Majesty ascended to the throne in 1999, the Kingdom of Bahrain has transformed itself into a beacon of growth, stability, and opportunity. Under his wise leadership, Bahrain has achieved significant milestones that have not only propelled the nation forward but have also strengthened its role on the global stage.

?

Bahrain's Achievements Under His Majesty's Leadership

From the inception of the National Action Charter in 2001, which set the foundation for a new era of political reform, to the establishment of the Economic Vision 2030 and the upcoming Economic Vision 2050, His Majesty King Hamad bin Isa Al Khalifa has steered the Kingdom towards a future defined by sustainability, fairness, and competitiveness.

?

Economic Growth and Diversification

Over the past two decades, Bahrain has witnessed impressive economic growth, with a compound annual growth rate of 8% from 2002 to 2022. This consistent expansion underscores the effectiveness of strategic economic policies and reforms implemented under His Majesty's guidance. A testament to Bahrain's economic resilience is the surpassing of the foreign direct investment (FDI) target of $2.5 billion by 2023; since 2021, the Kingdom has attracted over $2.8 billion in FDI, indicating strong investor confidence and economic attractiveness in the post-pandemic era.

The economic landscape has undergone profound diversification, significantly reducing reliance on oil revenues. The oil sector's contribution to GDP has decreased from 42% in 2002 to less than 17% by 2022, reflecting successful efforts to pivot towards non-oil sectors. The non-oil sector achieved a growth rate of 6.6% in 2022, the highest in a decade, emphasizing the increasing diversification of Bahrain's economy.

Thriving sectors such as financial services, manufacturing, logistics, and tourism have led the charge in this transformation. The financial sector, with over 370 financial institutions, has positioned the Kingdom as a regional financial hub. Banking sector assets have grown by 222%, highlighting the sector's pivotal role in the economy. The stock of foreign direct investment has risen by an impressive 582%, underscoring Bahrain’s attractiveness to foreign investors, facilitated by regulatory reforms and incentives for businesses.

Bahrain has also emerged as a center for manufacturing excellence, with significant projects in the energy sector, the Al Dur 2 station was launched, along with the new oil pipeline project, and work is underway to expand the Bapco refinery. In industry, the sixth smelter line for Aluminium Bahrain (Alba) and the first phase of the American Trade Zone was inaugurated, with work progressing on the Aluminum Downstream Industries Zone. In logistics, the Bahrain International Airport and Khalifa bin Salman Port expansion projects were completed, as well as the Bahrain LNG terminal. In tourism, Bahrain International Circuit and Bahrain International Exhibition & Convention Center were established, alongside several tourism facilities, which made the tourism industry experience a significant boom, with a 170% increase in tourists between 2002 and 2023, likely fueled by infrastructure development and efforts to promote Bahrain as a premier tourist destination. In real estate, the "Aqari" real estate data bank was launched, aiming to create a reliable national source of real estate information. In trade, Bahrain’s trade volume with the world reached $52 billion in 2022, equivalent to 117% of the Kingdom’s GDP Non-oil exports have surged by 675%, showcasing strong performance in manufacturing, logistics, and other industries.

?

Social Development and Human Capital

In social development, Bahrain has made notable strides in healthcare, education, housing, and employment.?

In healthcare, the establishment of King Hamad University Hospital, King Hamad American Mission Hospital, and the Mohammed bin Khalifa bin Salman Cardiac Specialist Center, and increasing hospital beds to 3,428 by 2022, indicating a robust expansion of healthcare services and ensuring better medical coverage for the population.?

In education, the number of public and private schools has increased to 291 by 2024, alongside the establishment of The Quality Assurance Authority for Education and Training, Bahrain Polytechnic University, and the Bahrain Teachers College, with 15 higher education institutions currently operating in the Kingdom reflecting significant investments in educational infrastructure to meet growing demand.

In housing, more than 55,000 citizens have benefited from housing services since 2002, establishment of several housing cities including Salman City, East Hidd, East Sitra, and Khalifa City, have been developed. Additionally, several housing projects, such as the Ramli and Wadi Al-Seel projects, have been launched, reflecting sustained government investment in social welfare and addressing housing needs which is a testament to His Majesty's commitment to improving the quality of life for all Bahrainis.

Employment initiatives have been a cornerstone of Bahrain's social development. Bahraini private-sector employment has grown by 59%, pointing to greater workforce participation in tandem with economic expansion. Notably, there has been a 126% increase in Bahraini women's employment in the private sector, highlighting progressive strides in gender inclusion in the workforce. Private-sector wages for Bahrainis have increased by 119%, reflecting improved living standards and contributing positively to consumer spending and quality of life. The government has also surpassed its employment target of 20,000 annually by 2024, with 29,533 citizens benefiting in 2023 alone. This proactive approach in creating job opportunities demonstrates a commitment to human capital development, which is critical for long-term economic prosperity.

?

Enhancing Government Efficiency

Under His Majesty's leadership, there has been a concerted effort to improve governance and public sector efficiency. The documentation of over 1,300 services and the reengineering of 650 services point to an ongoing focus on enhancing the effectiveness of public services, further supporting economic growth by improving living conditions and workforce productivity.

?

Foreign Policy Progression and Constitutional Monarchy

His Majesty's leadership has also brought about a notable evolution in Bahrain's foreign policy. The formation of a constitutional monarchy has uniquely positioned Bahrain as a pioneering democracy in the region, fostering an environment of transparency, coexistence, and social stability. His Majesty has consistently promoted Bahrain as a bastion of peace and cultural openness, extending the Kingdom's hand in cooperation to its regional and international partners.

The strategic vision of His Majesty has reinforced Bahrain's commitment to being an active and responsible player on the world stage. This is evident in its designation as a "major non-NATO ally" of the United States, its leadership role in regional maritime coalitions, and its active participation in global peace initiatives. Bahrain's progressive policies have contributed to forging stronger economic, cultural, and diplomatic ties, particularly with major global players like the United States.

?

The U.S.-Bahrain Relationship: A Pillar of Growth

The partnership between Bahrain and the United States has flourished over the years, particularly under His Majesty King Hamad's reign. The landmark Bahrain-U.S. Free Trade Agreement (FTA) in 2004 was a major catalyst for economic growth, stimulating trade and investment between the two nations. Bilateral trade has risen significantly, with Bahraini exports to the U.S. growing by 31% between 2019 and 2023.

Moreover, the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), signed in 2023, is set to further elevate this relationship, particularly in technology and innovation, positioning Bahrain as a key hub for regional growth. The deepening ties between Bahrain and the United States have not only facilitated economic growth but have also enhanced social and cultural connections between the two nations.

The FTA has fostered technological collaboration and enabled Bahrain to become a center for digital assets and fintech in the region. The creation of the U.S. Trade Zone in Bahrain is a testament to the continued confidence in Bahrain’s economic stability and openness, making the Kingdom an attractive destination for American companies looking to expand in the region.

?

A Vision for the Future: Bahrain Economic Visions 2030 and 2050

The future of Bahrain continues to look promising with the Bahrain Economic Vision 2050, which builds on the successes of Vision 2030. These strategic plans are geared towards transforming Bahrain into a knowledge-based economy, driven by the principles of sustainability, competitiveness, and fairness.

Vision 2050, to be launched by the end of 2024, will focus on further reducing reliance on oil, fostering human capital development, and advancing technological integration. The emphasis on technological advancement, particularly in collaboration with the United States, is set to be a cornerstone of Bahrain’s future growth.

Bahrain has already exceeded expectations, attracting over $2.8 billion in foreign direct investments since 2021 and significantly boosting employment and economic output. The non-oil sector's remarkable growth and the substantial rise in foreign investments underscore the effectiveness of Bahrain's strategic economic initiatives.

The impact of C-SIPA, once fully realized, will lead to significant economic opportunities, especially in today’s rapidly evolving technological landscape. The anticipated benefits of Vision 2050 and the ongoing collaboration with international partners present an exciting future for Bahrain and its partners, particularly the United States.

?

AmCham Bahrain: A Bridge to Continued Growth

Under His Majesty's leadership, the economic and diplomatic relationship between Bahrain and the United States has flourished, providing fertile ground for AmCham Bahrain to thrive. As the President of AmCham Bahrain, I am proud to witness the growth of this partnership firsthand and I remain committed to furthering these ties in the upcoming years as the President of AmCham Bahrain.

The development that has occurred in Bahrain, both in its domestic reforms and in its international relationships, especially with the United States, has been a source of immense pride for us at AmCham. We have observed firsthand the significant increases in employment, the progressive strides in gender inclusion, and the rise in foreign investments that have contributed to Bahrain's economic prosperity.

I look forward to continuing to lead AmCham through this dynamic era, contributing to Bahrain’s development and its ongoing collaboration with the world’s largest economy. The shared vision between His Majesty and our international partners reflects a steadfast commitment to progress, openness, and prosperity.

As we celebrate this silver jubilee, we look forward to witnessing even greater milestones that will enhance Bahrain’s position as a model of progress and a gateway for international trade and investment. His Majesty King Hamad bin Isa Al Khalifa’s leadership has transformed Bahrain into a land of opportunity, innovation, and unity.

As Bahrain continues its journey towards 2050, guided by His Majesty’s vision, we at AmCham Bahrain stand ready to support and contribute to the realization of these ambitious goals, ensuring that the Kingdom remains a thriving hub for global business, technological advancement, and sustainable development.