Bahrain plans to spend 60bn Bahraini Dinar in a move to retain its good image. As a first step King Hamad bin Isa Al Khalifa lifted the state of emergency. The developments were welcomed by the business fraternity.
Bahrain was under financial turmoil in the recent past. When the Shiites demanded political reforms, King Hamad put the state under emergency rule. Troops were called in from neighbouring countries to control the demonstrations. With the lifting of emergency all the troops have moved out and the government plans to spend 6.2bn dinars.
The deficit for this year is estimated at 835.7 million dinars?for a?total spending of 3.12bn dinars, while the budget gap for next year is estimated to be 727m dinars with a total spending at 3.07bn dinars. According to King Hammad, the move is to?increase productivity, boost competitiveness, and encourage and attract investments. The Economic Development Board (EDB), which is the link between the government and the business community, has requested more than 300 companies to address any difficulties in their daily operations.
The economy was shaken due to some staff from international corporations in the banking and finance industry and a fall in tourism.? The postponement of its popular sport Formula 1 Bahrain Grand Prix also was a big blow to the economy. However, the reschedule of the event is likely to be soon.
The rise of its neighbouring state Qatar is also a challenge to Bahrain’s status as financial hub. The move to revamp Bahrain’s economy expects it to recreate the lost image.