Bahrain’s gross domestic product (GDP) at constant prices grew 3.5% YoY in 2025, driven by a 4.1% growth in non-oil activities, while oil activities declined slightly by 0.3%. 

At current prices, GDP increased by 3.7%, supported by a 5.3% growth in non-oil activities, offsetting a 5.7% decline in the oil sector, said Bahrain Economic Report for 2025 issued by the Ministry of Finance and National Economy.

In Q4 2025, GDP at constant prices grew by 4.6% YoY, driven by a 7.4% increase in non-oil activities, while oil activities contracted by 12.3%.

The report highlights the pivotal role of non-oil activities, which contributed 85.8% to GDP at constant prices during 2025.

Among non-oil activities, professional, scientific and technical activities, as well as accommodation and food service activities, recorded the highest annual growth rates at 6.4% each. Financial and insurance activities followed with a growth of 5.6%. Construction and transportation and storage grew by 5.0% and 4.7%, respectively. 

Real estate activities increased by 4.3%, while wholesale and retail trade grew by 4.2%. Education recorded a growth of 4.0%, and manufacturing rose by 3.7%. 

The report also showcases a 1.8% YoY increase in total inward FDI in Q4 2025, bringing total FDI stock to BD 17.7 billion.

Bahrain continues to achieve significant progress across a number of international economic and developmental indicators, reflecting the success of its economic diversification strategies and enhancements in business environment. With respect to competitiveness, Bahrain ranked 1st globally in e-commerce legislation, in the Network Readiness Index 2025, published by the Portulans Institute. The Kingdom also secured the 3rd spot globally in the Business Incentives pillar, as per the Innovators Business Environment Index 2026 released by StartupBlink. Additionally, the Kingdom of Bahrain maintained its Group A classification in the GovTech Maturity Index 2025 issued by the World Bank Group, ranking 15th globally out of 197 countries.