Bahrain non-oil revenues rise 15%, overtaking oil at 52%

Summary

• Bahrain's 2025 non-oil revenues rose 15% to BD1.387 billion, official final account data show
• Non-oil income made up 52% of public revenues, ahead of oil's 48%
• The 2025 deficit reached BD1.766 billion, BD290 million wider than budgeted

The latest

Non-oil revenues in Bahrain climbed 15% in 2025 to BD1.387 billion, overtaking oil receipts of BD1.301 billion for the first time in the figures released, according to the state consolidated final account for the year ended December 31, 2025. The shift left non-oil sources supplying roughly 52% of public revenues. The same accounts show a deficit of BD1.766 billion.

Details

• The headline figure: Non-oil revenues reached BD1.387 billion, a 15% gain on actual 2024 results, according to the final account. Oil revenues came in at BD1.301 billion, leaving the split at roughly 52% non-oil against 48% oil — a reversal of the kingdom's traditional revenue structure.
• The bottom line: Total public revenues were BD2.688 billion against actual spending of BD4.454 billion, producing a deficit of BD1.766 billion. That overshoot ran BD290 million above the budgeted deficit of BD1.476 billion, according to the published accounts.
• Where the money came from: Fees and services generated about BD1.090 billion, exceeding the estimated allocation by BD43.764 million. Value-added tax brought in BD627.352 million, while the multinational enterprise income tax — a newer levy — contributed BD103.962 million to the non-oil total.
• Spending structure: Recurrent expenditure stood at BD4.136 billion, including BD1.424 billion in workforce costs, BD1.082 billion in other operating expenses and BD578 million for social support programmes. Public expenditure excluding debt interest was BD3.402 billion.
• The interest bill: Government debt interest reached BD1.052 billion in 2025, up 11% from 2024. That single line now exceeds the kingdom's entire oil revenue by a narrow margin when measured against project spending, and absorbs close to a quarter of total expenditure.
• Capital projects: Project expenditure totalled BD317.932 million. The largest items were the Sitra Housing Project at BD61.872 million, road works at BD53.215 million, sewage network works at BD34.526 million and housing finance programmes at BD25.562 million.
• The debt stock: Total public debt stood at BD22.166 billion, equivalent to around 120% of GDP at current prices, according to the final account. No repayment schedule or debt-reduction target was set out alongside the figure.
• External position: The current account recorded a surplus of BD1.061 billion in 2025, a 23.7% increase on 2024, indicating that Bahrain's external balance strengthened even as the fiscal gap widened beyond the budgeted level.

Background

Bahrain has the smallest hydrocarbon base among Gulf producers and has leaned on taxation to broaden revenues, introducing value-added tax and later a levy on multinational enterprises. Both now appear as distinct lines in the non-oil column of the state's final accounts.

Between the lines

The 52% non-oil share is a composition milestone, not a solvency one. The same accounts show revenues covering barely 60% of spending, a deficit BD290 million wider than planned, and debt interest of BD1.052 billion rising 11% in a single year. With debt near 120% of GDP, the interest line grows independently of whether tax receipts keep climbing.

What's next

Watch the 2026 budget for whether the interest bill is projected above BD1.052 billion, whether the multinational enterprise tax exceeds BD103.962 million in its next full year, and whether the debt-to-GDP ratio moves off 120%.

Source: Gulf Daily News via Zawya