Manama, October 31 (BNA) The government of the Kingdom of Bahrain announced today a new plan for national economic growth and fiscal balance. The multi-year plan represents one of Bahrain’s largest economic reform programs, with the aim of enhancing the economy’s long-term competitiveness and supporting recovery after COVID 19.
The new five-pillar plan, which is in line with Bahrain’s Economic Vision 2030 and the Kingdom’s intention to achieve net zero by 2060, includes the following:
1. A new plan for labor market reform: including a long-term national labor market strategy. business fee review; and a new Tamkeen strategy (a public authority in Bahrain that supports private sector development) to further develop the skills of the Bahraini workforce. The program aims to create 20,000 Bahraini job opportunities and train 10,000 Bahrainis annually until 2024.
2. Regulatory reform package: including simplification of procedures for approval of commercial licenses. launch of a new state real estate bank; An online portal for viewing investment opportunities; Launching an online portal to digitize and simplify urban planning services; And the launch of a new residence permit program to attract talent and investors. The package aims to support $2.5 billion in foreign direct investment by 2023.
3. Strategic projects plan: stimulating investments of more than 30 billion dollars in strategic projects and creating new industrial investment zones throughout the Kingdom.
4. Priority Sector Plan: Six new sector strategies will be implemented across oil and gas. tourism; logistics; financial services; communications, information technology, and the digital economy; and manufacturing sector. The new sectoral strategies aim to support 5% annual growth in the non-oil sector by 2022.
5. Updating the Fiscal Balance Program: Eight new courses of action for fiscal reform that include reducing recurrent non-manpower spending; reduce project spending; reduce manpower expenses; simplify the distribution of cash benefits to citizens; Increasing annual contributions to government-owned entities; Modify the prices of goods and the prices of services provided to companies. Introducing new initiatives for government services revenues. And increase the value-added tax to 10%. The program seeks to balance Bahrain’s budget by 2024, compared to its pre-Covid-19 target of 2022.
After the announcement, His Excellency Sheikh Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy, said:
This comprehensive economic and financial plan is an investment in the people of our nation, our business, and the future of Bahrain.
“The rapid health and economic measures taken by the government during COVID 19 have secured the foundations for recovery, as evidenced by the 5.7% real annual growth in the second quarter of this year. The Kingdom is emerging from the pandemic for reasons of extreme optimism and the plan announced today aims to drive recovery.
“The plan is also a concrete statement of our intent to secure a balanced budget by 2024 and provide long-term financial sustainability, with eight new spending and revenue initiatives complementing our broader economic competitiveness enhancements.”
AOQ