With a multitude of successful operations in Europe and the Middle East, securitization and wealth management company DHF Capital SA recently ventured into the thriving market of Bahrain with the goal of providing value to stakeholders and investors and promoting long-term, sustainable growth in the country. As the GDP of the GCC is expected to reach 3.4% in 2024, Bahrain is well-positioned to play a significant role in the growth of the region.
In an exclusive interaction with Business Frontier, CEO and Asset Manager Bas Kooijman of the firm spills the beans on the investment opportunities in the country.
Q1. Bahrain’s GDP growth is forecasted for 2.5% in 2025 after $1.7 billion of investment in 2023. What are the reasons for this financial boom?
The funding influx in 2023 probably sparked economic activity, largely driven by the tourism, logistics and manufacturing sectors, which increased competitiveness and productivity. By 2025, Bahrain’s diversification efforts – particularly in the areas of technology, finance and tourism – should be paying off by bolstering the country’s ability to grow steadily. The country’s economic growth is further supported by global economic recovery and regional stability in the Gulf. The increase of productivity stems from investments in innovation and technology, and the hospitality industry that is being stimulated by improvements in tourism infrastructure. These elements combined have fuelled Bahrain’s financial boom and set the nation up for long-term economic expansion through 2025.
Q2. The property market of Bahrain has been on an upward trajectory with several wealthy investors from across the world interested in it. What do you think are the reasons behind this?
Bahrain’s property market is attracting wealthy global investors to its strategic Gulf location, stable economy, and investor-friendly policies. Ongoing infrastructure developments and diversification efforts into finance and technology sectors enhance its appeal. The market’s stability, coupled with a high quality of life and transparent legal framework makes Bahrain an enticing destination for residential and commercial investments. These factors drive the market’s upward trajectory, drawing interest from wealthy individuals looking for secure and profitable opportunities in a dynamic and growing real estate landscape.
Q3. What potential do you see in the real estate investments in Bahrain?
The government of Bahrain has taken steps to increase the potential for real estate investment in the country, such as granting tax incentives and permitting foreigners to own properties in specific areas. These policies draw in foreign capital, increasing demand and raising real estate prices. Bahrain is a desirable location, for real estate investments it became a destination due to its advantageous location, steady economy and ongoing infrastructure such as Mumtalakat’s investments in the hospitality industry that has had significant impact on Bahrain’s tourism sector. The fund’s investments have led to the development of world-class hotels and resorts, attracting tourists from around the world.
Q4. What are the key trends you foresee when it comes to investments in Bahrain in 2024?
Bahrain’s major investment trends will be centred on a few different things. Firstly, investment opportunities will be fuelled by the government’s ongoing efforts to diversify the economy away from oil and gas, especially in industries like finance, technology and tourism. Secondly, continuing infrastructure initiatives in the utilities and transportation sectors will draw both local and foreign investors. The real estate industry will also become more appealing as a result of policies around foreign investments such as granting foreign nationals the ability to own real estate and offering tax breaks. In general, it’s anticipated that these factors coming together will favourably affect investment in Bahrain across industries in 2024.
