Non-oil sectors help cushion Bahrain’s economy as oil activity plunges in Q1.
Manama: Bahrain’s non-oil economy grew 2.2% year-on-year at constant prices in the first quarter of 2026, helping cushion the impact of a sharp contraction in oil activity, according to the Bahrain Economic Quarterly Report for Q1 2026 released by the Ministry of Finance and National Economy.
The report, carried by Bahrain News Agency (BNA), said the economy performed strongly in January and February before being affected in March by the regional disruption.
Overall GDP at constant prices contracted 3.8% year-on-year in Q1, largely due to a 37.2% decline in oil activities. The fall was attributed mainly to restrictions on maritime traffic through the Strait of Hormuz, which affected export capacity, along with scheduled maintenance.
Despite the downturn in the oil sector, non-oil activities continued to expand, recording 2.2% growth year-on-year. At current prices, GDP declined 2.7%, reflecting a 31.1% contraction in oil activities, while non-oil activities grew 1.9%.
The report underscored the crucial role of non-oil activities, which accounted for 90.1% of Bahrain’s GDP at constant prices in Q1 2026. Nine of the 13 non-oil economic sectors recorded positive growth during the quarter.
Financial and insurance activities remained the largest contributor to GDP, accounting for 19.7% and registering 8.6% year-on-year growth. Manufacturing followed with a 14.6% contribution, while public administration and construction accounted for 9.0% and 7.0%, respectively.
Meanwhile, the other non-oil sectors each accounted for between 2% and 5% of total real GDP, highlighting the diversity of Bahrain’s economic base.
