Bahrain's economy is bouncing back on positive outlook and major improvement in the security situation with major local banks expecting a seven to 10 per cent growth in their profits, said a report.

Local banks are expected to boost their profits by seven to 10 per cent, it was revealed yesterday.

His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa hailed the growing economic momentum as he received Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj, who revealed new economic data, reported the Gulf Daily News, our sister publication.

According to updated figures, the overall volume of bank deposits soared by 10 per cent, while loans grew by 5 to 7 per cent. The tangible improvement in the security situation was a major boost for the economy.

The government has also played a vital role by stepping up public expenditure in infrastructure and housing sectors.

HRH the Premier gave directives to use the liquidity generated from the economic growth for new development projects. He instructed CBB officials to draw up a plan for restarting stalled real estate projects, and directed CBB to monitor loans provided by Islamic banks.-TradeArabia News Service