Bahrain awaits cash injection from Gulf neighbours | Financial Times

Bahrain awaits cash injection from Gulf neighbours | Financial Times:

Bulldozers rumble over land reclaimed from the sea, while cranes stretch above half-built high rises that will add to the gleaming office blocks, banks and malls shaping Manama. Over at Bahrain’s international airport, men work on a $1.1bn project to expand the terminal’s capacity from 9m to 14m passengers by next year.

The developments reflect the kingdom’s ambitions to revive its historical position as a regional financial and trade hub after Bahrain became swept up in Arab spring unrest in 2011. For years, the country had leveraged its reputation as one of the Gulf’s more liberal and open states to attract businesses keen to use Bahrain as a gateway to serve larger oil-rich neighbours.

The construction projects, partly funded by Gulf allies keen to bolster its stability, have helped drive growth during a period of subdued oil prices, with Bahrain’s economy outpacing other Gulf states since 2014. But as the expansion of Manama, the capital, has continued, Bahrain has fallen into a fiscal crisis, with policymakers failing to balance the books.