Bahrain’s move to become a high tech nancial hub could be undermined by concerns over its external nancing position, a more hardline authoritarian streak, and diplomatic rift with Qatar.
• Economic risk (MEDIUM): The jump growth in the second quarter has relegated concerns over its vulnerability to movements and disruptions in the hydrocarbon sector.
• Political risk (HIGH): Bans on opposition parties standing in the 2018 elections combined with the life sentence handed down to the leader on one of those parties had highlighted an authoritarian streak.
• Financial risk (LOW): The risk of nancial stability is low, but Moody’s has warned that the outlook for the banking sector is negative. It ranks second globally and rst in the MENA for Islamic nance.
• Commercial risk (LOW): Bahrain has risen further within the top third of countries in the World Bank’s Doing Business Report index while inward investment has soared during 2018.