MANAMA: If you’ve been tracking the fiscal shifts in the GCC lately, you know the region is in the middle of a serious transformation. Bahrain just underscored that momentum, recording a 4.0% real economic growth in the third quarter of 2025.
It’s the strongest performance we’ve seen from Manama in nearly two years. According to the latest Bahrain national accounts data released by the Information and eGovernment Authority (iGA), this isn’t just a statistical blip. It’s a solid jump from the 2.5% growth in the previous quarter, and honestly, it paints a picture of an economy that is finally finding its post-pandemic rhythm.
Table of Contents
A Broad-Based Economic Recovery
When you dig into the report, the headline grabber is obviously the oil sector. It surged by 9.3% at constant prices. That’s a massive number, sure, but relying on hydrocarbon spikes is an old story.
The more interesting narrative here is the resilience of the non-oil GDP growth, which clocked in at 3.1%.
For anyone living or doing business in the Gulf, this is the metric that actually matters for long-term stability. The non-oil sector now makes up 85.0% of the real GDP. That is a huge slice of the pie. It tells us that the diversification strategies—the tourism pushes, the fintech sandboxes, the logistics hubs—aren’t just government talk; they’re keeping the lights on.
“We are seeing a landscape where diversification isn’t just a policy goal anymore—it’s the reality on the ground,” is how market watchers are interpreting the Bahrain quarterly GDP data.
Key Sector Performance (Q3 2025)
Looking at the specific industries, the Bahrain economic indicators are flashing green across the board. It feels like every sector is pulling its weight.
- Real Estate: Leading the pack with 5.4% growth. If you’ve seen the construction cranes around Manama lately, this won’t surprise you.
- Financial & Insurance: Still the heavyweight champion of the Bahraini economy, growing by 5.0%.
- Education: Saw a 4.8% rise, which usually signals long-term demographic confidence.
- Transportation & Storage: Grew by 4.4%.
- Construction: Posted a solid 4.4% uptick.
- Manufacturing & Trade: Manufacturing is up 3.9%, while Wholesale & Retail Trade climbed 3.3%.
Foreign Investment and Global Standing
There’s also the money flow to consider. Beyond the domestic Bahrain GDP growth 2025 figures, the report points to a healthy appetite from foreign investors. The total stock of Inward Foreign Direct Investment (FDI) rose by 5.8% year-on-year, hitting BHD 17.5 billion.
That kind of capital doesn’t move without confidence. It aligns with Bahrain’s global reputation management, too. The Kingdom recently ranked third globally in Dispute Resolution in the World Bank’s Business Ready 2025 report. Plus, they’ve kept their Tier-1 status in combating human trafficking for eight years straight. It’s details like that which make the market feel “safe” for international players.
Conclusion
As Bahrain records 4.0% economic growth, the mood seems to be shifting from cautious optimism to genuine momentum.
Heading into 2026, the data suggests that Bahrain’s fiscal reforms are biting in a good way. For residents and investors, it looks like a stable year ahead. The challenge, as always, will be maintaining this pace when the oil markets inevitably cool down again—but for now, the indicators are looking good.
