MANAMA
Bahrain is navigating severe economic fallout from the Iran war without tapping its $5.3 billion UAE currency swap, officials confirmed. The conflict has strained foreign reserves, dropping them to post-COVID lows of $3 billion, while experts project a 3% economic contraction this year.
Despite recent renewed attacks, Sustainable Development Minister Noor bint Ali Alkhulaif struck an optimistic tone, stating businesses are successfully routing around shipping hazards. Remarkably, regional tourism has almost bounced back to its pre-war strength.
In a major bid to signal stability, the kingdom is negotiating to bring back its cancelled Formula One Grand Prix as early as October. While a final decision hinges on easing geopolitical tensions, restoring the high-profile race would inject a massive financial and psychological boost. Bahrain is also positioning itself to reclaim its traditional spot as the spectacular season opener for next year.