Bahrain

Official statistics released in late September put Bahrain's stock of inward foreign direct investment at BD17.733 billion at the end of 2025. That is up 81% from BD9.797 billion in 2016 and the highest level in the period, with growth speeding up from 2023. The figures cover the period before the war, so they show where existing investment sits but say nothing yet about investor appetite under current security conditions.

Pro Partner Group (citing Bahrain official statistics) · 2026-09-25

The US State Department's 2026 Investment Climate Statement for Bahrain lists the target FDI sectors as manufacturing, logistics, infrastructure, ICT, financial services, tourism, health and education. It notes that finance and insurance make up about 18% of GDP, manufacturing 15% and oil and gas 14%, and that state-owned enterprises remain central to the economy. It is a useful baseline on incentives, investment zones and VAT registration rules for entrants checking whether their sector qualifies for support.

US Department of State · 2026-09-29

No significant developments identified in this section for the reporting period.

Aperture editorial note · 2026-10-09

On 16 September the Central Bank of Bahrain raised its overnight deposit rate by 25 basis points to 4.50%, effective 17 September, citing global financial market developments. Because the dinar is pegged to the US dollar, local borrowing costs follow US conditions, so working-capital and project financing in Bahrain became more expensive during the window.

Central Bank of Bahrain · 2026-09-16

Annual consumer price inflation was 3.0% in August, unchanged from July and the highest since December 2022. Food prices rose 8.1% year on year and recreation and culture prices 10.1%. This reverses the near-zero inflation of 2025, so entrants should expect higher input, wage and pricing pressure than older data suggests, especially in food and consumer-facing businesses.

Trading Economics (citing Bahrain national CPI data) · 2026-09-27

A Congressional Research Service report updated on 23 September says Bahrain was the fourth most targeted country by Iran through August. Iranian strikes hit critical infrastructure and US military facilities, and the US Chief of Naval Operations said the Navy will not return to full operating status in Bahrain any time soon. The report also cites Reuters (15 September) that Amazon has not been able to restore access to its Bahrain cloud data zone. Firms that depend on local data hosting, utilities or industrial inputs should plan for backup sites and supply outside Bahrain.

Congressional Research Service · 2026-09-23

As of 8 October, Iran had gone 29 days without a ballistic missile attack and 33 days without a drone attack on Gulf host states. Over the same period, traffic through the Strait of Hormuz fell to its lowest in more than two months after a run of tanker attacks, with nine counted in October. Direct strike risk on Bahrain has eased for now, but shipping through Hormuz, which handles Bahrain's seaborne trade, remains disrupted and freight and insurance costs are likely to stay high.

GlobalSecurity.org (Iran War daily update, citing Reuters and UKMTO) · 2026-10-08

Since February, Bahrain's courts have convicted citizens for supporting Iran, sabotage and filming in prohibited locations. Dozens of people have lost their citizenship over pro-Iranian posts online, and parliament expelled three members who opposed a related royal decree. Foreign firms face a tighter climate for speech and security compliance, and should review staff social-media, site-photography and data-handling policies.

Congressional Research Service · 2026-09-23