Policy towards private enterprise and competition
2018-19: Given continued fiscal deficits, the government seeks to tap private-sector financing, including for the new light rail project.
2020-22: The role of the private sector grows gradually, supported by the passage of a public-private partnership (PPP) law.
Policy towards foreign investment
2018-19: The government moves towards privatising some of its assets, boosting foreign investment opportunities.
2020-22: Bahrain seeks further foreign investment in information and communications technologies and knowledge-based industries and remains one of the most open economies in the region from an investor viewpoint.
Foreign trade and exchange controls
2018-19: Gulf Co-operation Council (GCC) seeks free-trade agreements with Asian economies, but progress remains slow.
2020-22: Higher aluminium and oil refinery capacity contributes to a rise in exports.
Taxes
2018-19: Value-added tax (VAT) is introduced, and subsidy reform continues intermittently.
2020-22: Levies on expat workers are increased and serious consideration is given to personal and corporate income taxes.
Financing
2018-19: Bahrain continues to lean on its Gulf neighbours for support as a weak credit rating and low foreign-exchange reserves make it difficult to borrow on international markets.
2020-22: Bahrain faces an increasingly crowded market for financial services with the Abu Dhabi Global Market, the King Abdullah Financial District and the Dubai International Financial Centre all competing for regional leadership.
The labour market
2018-19: Fiscal pressure compels the government to consider painful measures to streamline the public-sector workforce.
2020-22: Training opportunities for Bahraini citizens grow as the government looks at plans to overhaul labour nationalisation schemes, but the number of expatriate workers continues to increase.
Infrastructure
2018-19: Major infrastructure projects near completion, including a new airport terminal and a liquefied natural gas import terminal.
2020-22: Work beings on the King Hamad Causeway project and a light rail network.
Technological readiness
2018-19: Development of financial technology (fintech) is supported by regulatory platforms launched by the government. Mobile networks launch super-fast 5G services.
2020-22: Investments in the information and communications technology sector pick up following the launch of a venture-capital "fund of funds", which will start to invest in start-up companies and entrepreneurial ventures.