NationsData

Investing in Bahrain in 2026

Middle East & North Africa

68

Score

ModerateNR

Moderate Investment Destination

Growing economy with manageable risks - suitable for diversified portfolios

Why investors choose Bahrain

Bahrain earns an investment score of 68/100, placing it in the moderate category for global investors. Growing economy with manageable risks - suitable for diversified portfolios. The country's standout dimensions are business climate (72/100) and financial strength (72/100), with overall GDP of $44.2B and per-capita output of $28,780. Growth is running at 3.0% with 3.5% of GDP arriving as foreign direct investment. Inflation is contained at 1.5%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Financial Services (sector score 75/100, currently growing), which represents 17% of GDP. Trade openness sits at 159% of GDP, a useful proxy for how integrated Bahrain is with the global economy.

Quick facts about Bahrain
Investment Score68/100
Risk LevelModerate
Credit RatingNR
GDP$44.2B
GDP Growth3.0%
GDP per Capita$28,780
Inflation1.5%
Population1.52M
FDI Inflows3.5% GDP
Trade Openness159%
Government Debt118% GDP
Current Account5.8% GDP
Score breakdown
Economic Health (30%)68
Political Safety (25%)55
Business Climate (20%)72
Financial Strength (15%)72
Growth Potential (10%)65
Investment Profile
Sector Scores
Score History

How Bahrain's investment score has evolved over time

2021: 66/100+2 pts since 20212025: 68/100
Top sectors for investment in Bahrain

Financial Services

17% of GDP, growing

75

Tourism

5% of GDP, growing

68

Oil Refining

12% of GDP, stable

62

Aluminum

5% of GDP, stable

60
Governance & rule of law in Bahrain

World Bank Governance Indicators (-2.5 to +2.5, higher is better)

Political Stability-0.4
Rule of Law0.3
Corruption Control0.2
Regulatory Quality0.7

Recommended services

Partner offers

banking

Wise Business

Multi-currency business account

Send, hold, and receive in 40+ currencies. Lower FX fees than traditional banks.

Open Wise account

insurance

SafetyWing

Nomad health insurance

Global health insurance for remote workers and digital nomads. Covers 175+ countries.

Get coverage

brokerage

Interactive Brokers

Global investment platform

Trade stocks, options, futures, and forex in 150+ markets worldwide. Low margin rates.

Open IB account

NationsData may earn a commission when you sign up through these links. This does not affect our editorial coverage, country scores, or analysis. Read our disclosure policy.

Frequently asked questions about investing in Bahrain
Is Bahrain a safe country to invest in?

Bahrain carries a moderate risk rating with an overall investment score of 68/100. Growing economy with manageable risks - suitable for diversified portfolios. Sub-scores: economic health 68/100, political stability 55/100, business climate 72/100, financial strength 72/100, growth potential 65/100.

What is Bahrain's sovereign credit rating?

Bahrain holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.

What are the strongest sectors for investment in Bahrain?

The top investment sectors in Bahrain are Financial Services, Tourism, Oil Refining. Financial Services leads with a sector score of 75/100 and represents 17% of GDP. Its current trend is growing.

What is Bahrain's GDP growth rate?

Bahrain's most recent GDP growth was 3.0%, with total GDP of $44.2B and GDP per capita of $28,780. Inflation is running at 1.5% and the current account balance is 5.8% of GDP.

How does Bahrain score on governance and rule of law?

On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Bahrain scores: political stability -0.4, rule of law 0.3, corruption control 0.2, and regulatory quality 0.7.

Can foreigners invest in Bahrain?

Most industries in Bahrain are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.

What is foreign direct investment (FDI) like in Bahrain?

Foreign Direct Investment in Bahrain runs at 3.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 159%. These figures show how integrated Bahrain is with the global economy and how welcoming it has been to international capital.

What is the public debt level in Bahrain?

Bahrain's government debt stands at 118% of GDP. This is elevated by international standards and warrants attention from creditors and rating agencies.

HomeCountriesIncorporateCompare