Oil-hit Bahrain mulls subsidy cuts for 2016
An industrial strategy to diversify Bahrain's economy will be unveiled in 2016 as the country's revenues drop by 70% due to oil prices, a minister confirmed
Bahrain is likely to implement additional subsidy cuts and charges for government services to boost its revenues.
The country's minister for industry and commerce confirmed this move is being planned by the government as it seeks a recovery from oil-price turbulence.
Services such as food, fuel, electricity, and water are currently subsidised in Bahrain, but these are now challenging the Kingdom's government as revenues take a plunge due to reduced oil prices.
Zayed Bin Rashid Al Zayani, Bahrain's minister for industry and commerce, said: "We have already started cutting subsidies and we are now looking at others: electricity [and] fuel are [likely] next year.
"It is being studied now," he added, according to Arabian Business.
More details about these cuts will be announced next year.
Zayani claimed Bahrain's revenues have dropped by 60% to 70% due to low oil prices.
Consequently, the country is eyeing economic diversification, and will launch an industrial strategy in the first quarter of 2016.
"We are looking at more export-based industries to create employment and that can be accommodated with our current resources," Zayani said.
The industrial strategy will focus on Bahrain's short- and mid-term prospects.