Latest news with #BahrainEconomy
Zawya
17-06-2025
- Business
- Zawya
CBB 12 month treasury bills Issue No. 129 fully subscribed
Manama, Bahrain – This week's BD 100 million issue of Government Treasury Bills has been fully subscribed by 100%. The bills, carrying a maturity of 12 months, are issued by the CBB, on behalf of the Kingdom of Bahrain. The issue date of the bills is 19th June 2025, and the maturity date is 18th June 2026. The weighted average rate of interest is 5.28% compared to 5.12% of the previous issue on 22nd May 2025. The approximate average price for the issue was 94.936% with the lowest accepted price being 94.731%. This is issue No. 129 (ISIN BH000X45Z109) of Government Treasury Bills. With this, the total outstanding value of Government Treasury Bills is BD 2.110 billion.
Zawya
17-06-2025
- Business
- Zawya
Bahrain's non-energy sector growth prospects stay positive
Bahrain's economy faces a nuanced outlook for 2025, navigating a weaker global growth forecast and new US tariffs, even as regional oil output increases offer some tailwind, according to the Institute of Chartered Accountants in England and Wales (ICAEW) Economic Insight report for Q2, prepared by Oxford Economics. Released yesterday, the report notes that the International Monetary Fund (IMF) has cut its 2025 world GDP growth forecast to 2.4 per cent from 2.8pc last year, marking the lowest expansion since 2020. This comes as most of the world, including the Middle East, continues to face tariffs of around 10pc. Despite these headwinds, the Middle East is expected to see stronger growth this year than in 2024, largely driven by Opec+ countries accelerating the rollback of oil production cuts. Regional GDP is now projected to grow by 3.5pc in 2025, up from 1.5pc in 2024. For the GCC, which includes the kingdom, GDP growth is forecast at 4.4pc this year. This upward revision is primarily due to Opec+ members, including Saudi Arabia and the UAE, raising oil supply faster than anticipated. Saudi Arabia's average oil production is now projected at 9.7 million barrels per day (bpd) for the year, boosting its oil sector growth forecast to 5.2pc. The UAE's oil sector is expected to grow by 6.1pc. However, GCC countries, including Bahrain and Oman, now face a universal 10pc US tariff on their goods, superseding existing free trade agreements. While the direct impact is expected to be muted given that GCC exports to the US are only 3pc of total exports and energy is exempt, trade uncertainty could dampen near-term external demand and investment. The increased Opec+ supply and global growth concerns pushed Brent crude oil prices to their lowest since 2021 in early April. Although prices have stabilised near $65 per barrel, continued tepid demand and building supply are expected to limit gains, with an average price of $67.3 per barrel forecast for 2025. The kingdom's non-energy sector growth prospects remain positive, though the projected pace of expansion has been slightly lowered to 4.1pc this year for the GCC region. High-frequency data indicate resilient growth momentum, particularly in Saudi Arabia and the UAE, driven by robust hiring and significant project spending. Tourism is also a key growth engine for the region. Dubai saw a 3pc year-on-year increase in international visitors in Q1, with hotel occupancy at 82pc. The UAE anticipates a 10.3pc rise in tourist arrivals this year, benefiting its real estate, hospitality, and infrastructure sectors. The lower oil price environment has elevated fiscal risks for the region. For countries like Bahrain, Oman, Qatar, and Kuwait, where commodity exports account for over 70pc of government revenue, downward pressure on oil prices will strain budgets, potentially leading to wider deficits or increased borrowing. While Qatar and the UAE are still projected to run surpluses, Saudi Arabia is now forecast to have a budget deficit of 3.4pc of GDP in 2025, up from 2.8pc last year. Despite low inflation across the region, with Bahrain and Qatar experiencing negative annual inflation, domestic interest rates are expected to remain high due to their currencies' peg to the US dollar. The US Federal Reserve is anticipated to begin aggressive rate cuts in December, which should support domestic consumption and investment next year. The kingdom, along with other GCC nations, continues to be viewed as an attractive investment destination, with growing foreign participation in both bond and equity markets. The region saw a record 53 IPO deals last year, raising over $13 billion, as authorities aim to deepen capital markets and further diversify their economies. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
15-06-2025
- Business
- Zawya
CBB holds third Board meeting for 2025
Manama, Kingdom of Bahrain – The Central Bank of Bahrain's (CBB) Board of Directors held its third meeting for the year 2025, chaired by Mr. Hassan Khalifa Al Jalahma on Sunday, 15 June 2025. The Board reviewed the topics on the agenda and was presented with key developments related to the CBB's priorities by HE Khalid Humaidan. In addition, the Board reviewed the CBB's licensing activities, policies, and other achievements thus far in 2025. The Board also reviewed key monetary and banking indicators for the period up to April 2025 including the money supply, which increased by BD5.2 billion to reach BD 16.8 billion at the end of April 2025, compared to the same period in 2024. As for retail banks, total private deposits increased to around BD 0.5 billion at the end of April 2025, an increase of 3.5% compared to the end of April 2024. The outstanding balance of total loans and credit facilities extended to resident economic sectors increased to BD12.4 billion at the end of April 2025, an increase of 1.8% compared April 2024, with the Business Sector accounting for 43.3% and the Personal Sector at 48.9% of total loans and credit facilities. The balance sheet of the banking system (retail banks and wholesale sector banks) increased to $244.7 billion at the end of April 2025, an increase of 2.3% compared to the end April of 2024. Point of Sales (POS) data for April 2025 totaled 21.5 million transactions (77.6% of which were contactless), an increase of 28.5% compared to the same period in 2024. The total value of POS transactions for April 2025 totaled BD 428.2 million (52.5% of which were contactless), an increase of 17.3% compared to the same period in 2024. The banking sector capital adequacy ratio reached 20.6% in Q1 2025 compared with 22.2% in Q1 2024. The capital adequacy ratio for the various banking sectors was 29.4% for conventional retail banks, 16.6% for conventional wholesale banks, 23.8% for Islamic retail banks, and 21.1% for Islamic wholesale banks in Q1 2025. The total number of registered Collective Investment Undertakings (CIUs) as of March 2025 stood at 1737 CIUs, compared to 1699 CIUs as of March 2024. The net asset value (NAV) of the CIUs decreased from US $11.551 billion in Q1 2024 to US $11.269 billion in Q1 2025, reflecting a decrease of 2.4%. The NAV of Bahrain domiciled CIUs decreased from US $4.586 billion in Q1 2024 to US $4.411 billion in Q1 2025, reflecting a decrease of 3.8%. The NAV of overseas domiciled CIUs decreased from US $6.965 billion in Q1 2024 to US $6.858 billion in Q1 2025, reflecting a decrease of 1.5%. Additionally, the NAV of Shari'a-compliant CIUs increased from US $1.743 billion in Q1 2024 to US $2.004 billion in Q1 2025, reflecting an increase of 15%.
Zawya
13-06-2025
- Business
- Zawya
World Bank projects Bahrain to grow at 3.5% in 2025
Bahrain's economy will grow 3.5 per cent this year and 3pc in 2026, according to the World Bank's most recent forecast. It said growth in GCC states is forecast to increase to 3.2pc in 2025, 4.5pc in 2026, and 4.8pc in 2027, as the phase-out of oil production cuts is expected to lead to rising oil production, despite projected lower oil prices amid weakening global demand. Growth in Middle East and North Africa is expected to pick up to 2.7pc in 2025 and strengthen further to 3.7pc in 2026 and 4.1pc in 2027. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
29-05-2025
- Business
- Zawya
Bahrain-listed companies' net profits rise 2.2%
Bahrain - Bahrain-listed companies saw a modest uptick in net profits during the first quarter of 2025, climbing 2.2 per cent year-on-year to $465.3 million. Analysis by Kuwait-based Kamco Invest shows that this slight increase was primarily driven by strong performance in the banking, transportation, and capital goods sectors, which helped offset declines across the majority of the exchange's 14 industry segments. The banking sector emerged as the clear leader, with its net profits surging 16.8pc to $289.4m in Q1-2025. This boost largely stemmed from Bahrain Islamic Bank, which reported a multi-fold increase in net profits to $26.5m. The bank's improved performance was attributed to higher net interest income, despite a dip in non-interest income and increased impairments. Arab Banking Corporation (Bank ABC) posted the highest net profits among Bahraini banks, reaching $76m, a slight rise from the previous year, aided by reduced impairments. National Bank of Bahrain also saw a 2.2pc gain in net profits, hitting $74.6m, propelled by an increase in non-interest income. In contrast, the materials sector experienced a significant setback, with net profits plummeting 25.9pc to $48.1m. Alba, the sector's sole constituent, cited higher production costs as the main culprit, which eroded its EBITDA and ultimately its bottom line. This occurred despite a 20pc rise in LME aluminium prices and a 38pc increase in premiums. The telecom sector also faced headwinds, with total net profits declining 3pc to $51.1m. Batelco (Beyon), the dominant player, reported a 3.8pc drop in net profits to $48m. The company attributed this decline to the implementation of Domestic Minimum Top-Taxes (DMTT), which took effect on January 1, 2025, as well as costs associated with acquisitions completed in 2024. Meanwhile, aggregate net profits for companies listed on GCC exchanges rose 2pc year-on-year in the first quarter of 2025, reaching $58.6 billion, primarily driven by strong performances in the banking, telecom, and real estate sectors. This modest improvement came despite a 5.7pc decline in profits from the energy sector, largely due to a 7.5pc year-on-year drop in net profits from Saudi Aramco. Excluding Aramco's results, total GCC corporate profits would have increased by 10.7pc in Q1 2025. The GCC banking sector was a significant positive contributor, with aggregate earnings surging 10pc year-on-year to $16bn. Banks in Abu Dhabi, Saudi Arabia, and Bahrain all reported double-digit profit growth. While the energy sector as a whole saw a decline, 17 out of 27 listed energy companies reported improved net profits. The GCC telecom sector experienced a robust 45.3pc year-on-year growth in net profits, reaching $3.5bn, with broad-based double-digit gains across most GCC countries. The GCC real estate sector also posted a strong performance, with net profits increasing by 55.5pc year-on-year to $2.9bn. This growth was led by substantial gains in the UAE, where real estate company profits rose 38pc to $2.1bn, and in Saudi Arabia, which saw a multi-fold increase to $472.7m. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
