Institutional Role
The Bahrain Economic Development Board is the kingdom’s lead economic strategy body and investment promotion authority. Established in 2007, the EDB serves a dual mandate: formulate economic policy aligned with the Economic Vision 2030, and attract foreign direct investment to Bahrain.
The EDB authored the Economic Vision 2030, published in October 2008. This authorship role gives the institution a unique position within Bahrain’s governance structure — it is simultaneously the architect of the national economic strategy and the agency responsible for its promotion to international investors.
The EDB reports directly to the government at the highest level. Its board is chaired by the Crown Prince and Prime Minister, His Royal Highness Prince Salman bin Hamad Al Khalifa. This governance structure provides the EDB with the political authority necessary to coordinate across ministries and government agencies.
Investment Promotion
The EDB functions as Bahrain’s primary interface for foreign investors evaluating the kingdom as a business location. The investment promotion mandate covers:
Investor facilitation. The EDB provides end-to-end support for companies establishing or expanding operations in Bahrain. This includes site selection assistance, regulatory guidance, introduction to banking and professional services, and liaison with government agencies for licensing and permits.
Sector targeting. The EDB actively promotes investment in sectors identified as priorities under the Economic Vision 2030’s economy pillar: financial services, information and communications technology, manufacturing, logistics, and tourism. Promotional activities include international roadshows, investor conferences, and bilateral engagement with target companies.
Data and research. The EDB publishes economic data, sector analyses, and investment guides that provide prospective investors with the information required to evaluate Bahrain. The quarterly economic reviews are the most widely cited public data source on the Bahrain economy outside of CBB publications.
Aftercare. The EDB maintains relationships with established investors to support expansion, address operational challenges, and encourage reinvestment. Investor retention is as critical as investor attraction for a small economy where each significant investment represents a measurable share of sectoral activity.
Quarterly Economic Reviews
The EDB publishes quarterly economic reviews that provide the most accessible snapshot of Bahrain’s economic performance. These publications typically cover:
- GDP growth and composition by sector
- Non-oil sector performance metrics
- Foreign direct investment inflows
- Tourism arrivals and revenue
- Financial sector indicators
- Labour market data and Bahrainisation progress
- Infrastructure development updates
For analysts and investors, the quarterly reviews serve as the primary tracking mechanism for vision progress, supplementing CBB financial sector data and government fiscal statistics.
FDI Strategy
Bahrain’s FDI strategy, coordinated by the EDB, operates under constraints that shape its approach. The kingdom cannot compete for mega-projects against Abu Dhabi or Saudi Arabia on capital terms. Instead, the EDB positions Bahrain as the Gulf’s easiest market to enter, operate in, and use as a regional base.
The FDI value proposition centres on:
- 100 percent foreign ownership in most sectors
- Company formation costs among the lowest in the GCC
- Consolidated financial regulation through the CBB
- Proximity to Saudi Arabia via the King Fahd Causeway
- Cost-competitive operating environment relative to UAE and Saudi Arabia
- English-speaking, educated workforce
FDI data published by the EDB tracks both inflows and cumulative stock, segmented by source country and target sector. Financial services historically account for the largest share of FDI stock, reflecting Bahrain’s established banking sector.
Vision Custodianship
Beyond promotion and facilitation, the EDB serves as the institutional custodian of the Economic Vision 2030. This role encompasses monitoring implementation progress across government agencies, recommending policy adjustments, and reporting on outcomes against the vision’s stated objectives.
The custodianship function gives the EDB visibility across all three vision pillars — economy, government, and society — even though its operational mandate is primarily economic. This cross-cutting view makes the EDB the institution best positioned to assess whether the vision’s integrated design is functioning as intended.
Assessment
The EDB’s effectiveness is measurable through FDI data, business formation rates, and international competitiveness rankings. The institution’s challenge is that its promotional success depends on the performance of other agencies — the CBB must deliver regulatory quality, the MOIC must process registrations efficiently, and Tamkeen must produce a competitive workforce. The EDB can attract investors to the door. Whether they enter and stay depends on the broader institutional ecosystem.