V L Srinivasan
Manama (Bahrain), March 21:
Bahrain may have lost an estimated $1 billion in various sectors due to the recent unrest, however the economy is now on the path to recovery, captains of industry said yesterday.
Although final figures are yet to be confirmed, the hospitality sector is believed to have been the worst hit by the crisis, with many hotels registering a room occupancy ratio of less than 10 per cent. A major blow to this sector was the postponement of the Formula One Grand Prix, which would have fetched millions of dollars for companies across the Kingdom.
The tourism sector contributes nine per cent of Bahrain’s GDP and this is expected to grow to 11 per cent by 2020.
“It is unfortunate that businesses have taken a full hit but we are confident that they will rebound with much vigour as the situation is improving,” Chairman of the International Trading and Investment Company and President of the Bahrain Businessmen Association, Shaikh Hisham bin Abdulrahman Al Khalifa, told DT.
Shaikh Hisham explained that businesses thrive in a congenial atmosphere and with security being restored in the Kingdom, the industry can now look to the future with confidence.
Leading banker and BBK Chairman Murad Ali Murad added that signs of stability are now visible, although it will require a few more days for the situation to fully return to normal. “Once people get the confidence of security, they will start work and life will continue as usual,” he said.
The retail and commercial sectors have also been affected as a vast amount of people stopped using their credit and debit cards. Others, who may have been planning to make large purchases, such as buying a house or a car, put their plans on hold. “This had an adverse impact on the banks, which provide services to these sectors,” Mr. Murad explained.
He added that although the loss has been substantial, the country will recover in no time as the government will soon begin working on housing projects and this will have a positive impact on the economy.
Mr. Murad explained that the royal gift of BD1,000 distributed to every Bahraini family by His Majesty King Hamad bin Isa Al Khalifa a few weeks ago will also help with the recovery as through these gifts more than BD120 million will enter the economy.
Manama (Bahrain), March 21:
Bahrain may have lost an estimated $1 billion in various sectors due to the recent unrest, however the economy is now on the path to recovery, captains of industry said yesterday.
Although final figures are yet to be confirmed, the hospitality sector is believed to have been the worst hit by the crisis, with many hotels registering a room occupancy ratio of less than 10 per cent. A major blow to this sector was the postponement of the Formula One Grand Prix, which would have fetched millions of dollars for companies across the Kingdom.
The tourism sector contributes nine per cent of Bahrain’s GDP and this is expected to grow to 11 per cent by 2020.
“It is unfortunate that businesses have taken a full hit but we are confident that they will rebound with much vigour as the situation is improving,” Chairman of the International Trading and Investment Company and President of the Bahrain Businessmen Association, Shaikh Hisham bin Abdulrahman Al Khalifa, told DT.
Shaikh Hisham explained that businesses thrive in a congenial atmosphere and with security being restored in the Kingdom, the industry can now look to the future with confidence.
Leading banker and BBK Chairman Murad Ali Murad added that signs of stability are now visible, although it will require a few more days for the situation to fully return to normal. “Once people get the confidence of security, they will start work and life will continue as usual,” he said.
The retail and commercial sectors have also been affected as a vast amount of people stopped using their credit and debit cards. Others, who may have been planning to make large purchases, such as buying a house or a car, put their plans on hold. “This had an adverse impact on the banks, which provide services to these sectors,” Mr. Murad explained.
He added that although the loss has been substantial, the country will recover in no time as the government will soon begin working on housing projects and this will have a positive impact on the economy.
Mr. Murad explained that the royal gift of BD1,000 distributed to every Bahraini family by His Majesty King Hamad bin Isa Al Khalifa a few weeks ago will also help with the recovery as through these gifts more than BD120 million will enter the economy.
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