Finance minister urges economic diversification

Manama, Dec.22 (BNA): Finance Minister Shaikh Ahmed bin Mohammed Al-Khalifa urged diversified sources of income and reduction of reliance on oil revenues. He stressed the need to muster all efforts to confront current financial challenges which are resulting from plummeting oil prices in international markets. He underlined the necessity to resort to borrowing to carry out endorsed plans, stressing the need to address current conditions without affecting medium and low-income people. Addressed the weekly session of the Council of Representatives, the minister said that the ultimate priority should be given to the diversifying sources of income and reduce reliance on volatile oil revenues. He outlined the three-pronged Government strategy to boost non-oil revenues maintain Bahrain's financial stability and support the pillars of the national economy. He stressed the need to recover the costs of fees levied on Government services and restructure Government subsidies of goods and basic services to benefit eligible citizens. Citing updated figures, he said that Bahrain's Gross Domestic Product (GDP) soared to BD12.7 billion in 2014 up from BD3.4 billion in 2000. He stressed the steady growth of transformative industries, financial firms, transport and telecommunications in addition to the sector or personal and social services. He pointed out that the policy of diversification has paid off as the contribution of oil and gas in the GDP dropped to 24% last year, down from 44% in 2000. Meanwhile, non-oil revenues rose from BD262 million in 2009 to BD399 million last year.