Bahrain’s authorities are undertaking multi-level steps to stimulate the local economy though focusing on the country’s competitive advantages. There is a steady drive to attract investments, partly through strengthening economic liberalisation and rules concerning expatriates are undergoing additional enhancement.

The Economic Development Board, responsible for crafting economic strategies, is exerting efforts to entice foreign investments into the country with some notable success. A statement by EDB reports that 40 firms set up operations in Bahrain last year. These enterprises operate in manufacturing, logistics, financial services, tourism and entertainment, professional services, and communication and technology, collectively committing $281 million.

The indirect benefits entail creating hundreds of jobs for locals. Unemployment among locals is a challenge in Bahrain. The other two Gulf states suffering high jobless rates are Saudi Arabia and Oman.

Also in 2016, the authorities decided to further open up other economic sectors for non-locals. Targeted activities include accommodation, administrative services, recreation and leisure, health and social work, information and communication, manufacturing, mining and quarrying, real estate and water supply.

Understandably, the authorities are seeking ways to entice Saudi investors and overseas businesses alike. The recent trip by Bahrain’s Crown Prince Salman Bin Hamad Al Khalifa to Saudi Arabia helped achieve some concrete results. An agreement was reached for setting up an office in Bahrain dedicated to Saudi investors, who are already treated as locals as part of a broader accord involving GCC member states. Also, the two sides decided on a one-stop access on either side of the causeway.

In a move designed to further distinguish Bahrain from regional rivals, officials intend to introduce special working permits of two years for qualified foreign workers. The plan, due to commence this year, is meant to make expatriates their own bosses by granting them the opportunity of being associated with more than a single employer at a time, if needed.

The scheme is optional and partly designed to help workers overstaying their visa permits rectify their statuses. Understandably, holders of flexible working permits must pay all associated fees of working in Bahrain by virtue of not being associated with particular sponsors.

Such actions could make Bahrain a more popular place with expatriates. Already expatriates admire Bahrain, as illustrated in obtaining the ninth place overall based on the 2016 results of HSBC Expat Explorer. This is the best performance within the region.

Bahrain is only behind Singapore, New Zealand, Canada, Czech Republic, Switzerland, Norway, Austria, and Sweden. The study considers numerous variables including job security, work/life balance, safety, integration, quality of childcare and schools.

In reality, Bahrain is encountering daunting economic challenges. Major credit rating agencies rank Bahrain’s debt below investment levels or junk. Moody’s — unlike Standard and Poor’s’ and Fitch — maintains a negative outlook. The other two grant a stable outlook. However, in late 2016, S&P downgraded Bahrain’s rating from BB to BB-.

Additionally, there is an issue with public finance. Public debt now stands at $23 billion, representing 70 per cent of GDP. Forecasts are for higher debt figures amid difficult sovereign ratings.

There is the challenge of improving Bahrain’s position in comparative surveys. The 2017 Index of Economic Freedom reduced Bahrain’s rankings by 25 notches to 44th worldwide, considerably behind several Gulf countries due to adverse effects from its public financing levels.

It is hoped that governmental measures would address some of these challenges. The authorities appreciate the scale of the problems.

The writer is a Member of Parliament in Bahrain.