Foreign direct investment (FDI) into Bahrain rose by 11 per cent to reach $989m in 2013 compared to the previous year.

According to figures released by the United Nations Conference on Trade and Development’s (UNCTAD) annual world investment report, the rate of FDI growth in to the Gulf state outpaced global FDI flows which rose by 9 per cent.

It is the second year of double digit growth in FDI since the global economic downturn, with investment in 2012 reaching $891m, a 14 per cent increase on 2011.

Following the release of the report, Kamal bin Ahmed, minister of transportation and acting chief executive, Bahrain Economic Development Board, said that FDI is an important means of boosting private sector growth and creating much-needed employment.

Bahrain’s economy grew by 5.3 per cent in 2013 with the growth fuelled by a rebound in the country’s hydrocarbon industry following a slump in production the previous year.